DB pension larger lump sum

escubados

Sorry I posted this in the wrong forum previously

I have just received my pension statement, I will be taking early retirement at 60 at the end of the year.
I have been offered a full pension of £17,300 pa or a reduced pension of £14,800 pa
with an additional tax free lump sum of £45,600.
the pension is index linked to cpi but capped at 2.5%. taking into account additional tax to be paid on pension, it will take nearly 23 years before taking the higher pension pays off.
Also my wife would benefit from the whole should I die if I take the additional lump sum, whereas her spouses pension will be unaffected by either choice.
I have considerable savings so don't need the money but feel if invested it would be a better hedge against inflation rises going above 2.5% in the future.
I would welcome any views on this.

jem16

Link to original post;

https://forums.moneysavingexpert.com/discussion/comment/69193780#Comment_69193780