Lump Sum or Regular Payments

dunstonh

Mr.Generous said:

Take the max tax free lump sum you can, anything else is a really bad decision. 

In most cases, with a DB scheme that is not the best option.  And for many people doing income drawdown with a DC scheme, its not the best option either.    The only time that you can usually say taking the maximum tax free cash is best is if you are buying a lifetime annuity without a guaranteed annuity rate.

Eight replies and only one has mentioned the commutation rate  

That is probably because we don't know if it's a DB or a DC scheme at this point.

daveyjp

PennyDD said:

I'm hoping to take my works Pension soon.  Should I take a lump sum and small monthly payments or just take a larger monthly payment as if I was getting paid every month?  Is it as simple as that?  

It really isn't as simple as that and don't believe anyone who says it is.

With such scant details giving any information on what you may want to do is impossible.