DB pension

QrizB

thunderroad88 said:

That £52k lump sum could quite easily and with minimal risk make you the £2790 you lose in annual pension

4% drawdown would yield £2080 a year, rather less than £2790. And 4% isn't historically safe for a 67yo UK retiree, let alone a 62yo one.

thunderroad88 said:

I had the same choice a few years ago and took the lump sum and I’d do it again today in the same position. I like being in control of my own fortune…

Youv've not shared your commutation rate or age of retirement, so your situation might be different to the OPs.

thunderroad88

QrizB said:

thunderroad88 said:

That £52k lump sum could quite easily and with minimal risk make you the £2790 you lose in annual pension

4% drawdown would yield £2080 a year, rather less than £2790. And 4% isn't historically safe for a 67yo UK retiree, let alone a 62yo one.

thunderroad88 said:

I had the same choice a few years ago and took the lump sum and I’d do it again today in the same position. I like being in control of my own fortune…

Youv've not shared your commutation rate or age of retirement, so your situation might be different to the OPs.

DB pension at 60, similar commutation rate…I think it’s easily possible to invest the £52k and generate an income of £2790 (5-6% return) without any significant risk to the capital (although admittedly there is a very small amount of risk). I much prefer the flexibility of receiving the income and still having the lump sum (or most of it) to use in emergency or as you see fit. However, I had a decent amount of investments in my ISA already so a good safety net and the OP may not have that as you say…