Higher Pension vs Higher Lump Sum

Pixieboy

Hi, sorry to hear of your health situation.
What tier of ill health pension is this? I'm assuming probably 1 given your assessment of life expectancy, but I guess could be 2.
The amounts seem on the low side, given your age, but this may be because you are/were part time on leaving. Did you perhaps reduce your working hours to help manage your health issues, and if so was this considered by the independent doctor giving the opinion to your employer? These sorts of reductions can be disregarded in some circumstances.
Oh, and are you in Scotland or England?
The pension to lump sum conversion is only on the basis of 1:12 and as others have said the pension would be index linked. The option is clearly a personal one based on individual circumstances though. As you have said, the pension that your wife would get in the event of your death would be the same regardless of your choice on the pension/lump sum issue.
Just trying to make sure you get the right options...