DB question-lump sum or full pension ?

Albermarle

Linton said:

Albermarle said:

NlghtOwl said:

Ask about an enhanced pension if no survivor pension required, as it should increase your pension slightly.
why are you only planning for 20years, someone aged 60 of reasonable health should be planning to live until 90 or 95 at the earliest. Good luck 

I think the OP is being a bit pessimistic about longevity but you are maybe a bit optimistic.
The average life expectancy of a 60 year old man is about 23years.
If you have good health, not too many bad habits, money, good education, live in a nice area, married etc then you would hope to be in the 50% who live longer than average. I think the chance of reaching 90 is in the 10 to 15% region. and obviously a lot less to reach 95. 

Where did you get your data from?

see https://www.ons.gov.uk/peoplepopulationandcommunity/healthandsocialcare/healthandlifeexpectancies/articles/lifeexpectancycalculator/2019-06-07

It shows a  life expectancy of a 60 year old male now to be 24 years with a 25% chance of reaching 92, a 10% chance of reaching 96 and a 3.3% chance of reaching 100.

So for planning purposes it seems to me that assuming one lives until 95 would be reasonably prudent andmuch earlier would be rather risky.  Pn the other hand if you are insisting on a 100% SWR pass rate it would be illogical not to plan for living until over 100.

Well 23 or 24 years is not a big difference....

Regarding the older ages, I did skim through that ONS report but did not locate that calculator. I have seen it mentioned on this forum many times that there is a 25% chance that one of a couple will reach their 90's, so based my guesstimate on that.
Clearly according to the ONS calculator that is a serious underestimate, so thanks for the correction.

Pipthecat

I think in reality the large majority take the lump sum, without giving it a huge amount of thought. The chance to just get their hands on a big lump of dosh is enough reason for most. 

I'm pretty sure Jaguar cars entire business model is built on retirees tasking lump sums