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Points to consider when deciding whether to take lump sum or not

DawlishDilbert · 2017-01-31 15:17:31

I have a FSS which is offering a pension, or a lump sum with reduced pension (25% lump sum). I've calculated that if I just take the pension I will have 'won' if I survive 20 years (which I hope to, I'm 57) i.e. my total income will overtake that if I took the lump sum and lower pension - didn't include growth of lump sum…

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Northamptonblue Posts: 33 Forumite

12 February 2017 at 9:42AM

The simple answer, at least for final salary, index linked pensions, seems to revolve around security of income. The lump sum has the advantage of being tax free but the pension is for life. Those seem to be the major trade-offs. Cautious retirees like me probably prefer the peace of mind of a guaranteed income for life.

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Points to consider when deciding whether to take lump sum or not

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