NHS pension lump sum dilemma

Stubod

Very much depends on your circumstances, and whether you actually need the lump sum to pay off any debt etc?

If not, then for me it would be a no brainer to take the minimum lump sum, and have a higher, (indexed linked!), annual pension for life…but that's just my opinion…

ali_bear

If you find you do have surplus pension income you can still make regular investments into an ISA or a regular saver account, gift to the grandchildren etc.

jimi_man

https://forums.moneysavingexpert.com/discussion/comment/82027505#Comment_82027505

Very altruistic but I struggle with the idea of making possibly poor financial choices just so grandchildren can lead a better life.

Eldi_Dos

Does not necessarily need to be altruistic.

With you having acquired your pension via the NHS I would imagine you know more about mortality rates than the average member of the public, whatever choice you make there is a certain degree of a gamble in what gives the best result.

Moonwolf

https://forums.moneysavingexpert.com/discussion/comment/82027756#Comment_82027756

Personally, I’d be more inclined to make regular gifts from a larger regular income to grandchildren (or in my case nephews and nieces).

Firstly, in the near future, gifts from regular income are less likely to leave your relatives with an awkward IHT problem and

Secondly, you still have the income should circumstances change, perhaps you might want it to fund care as you get older.

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/82029042#Comment_82029042

Firstly, in the near future, gifts from regular income are less likely to leave your relatives with an awkward IHT problem and

I would not bank on the 'regular income' to avoid IHT, not being closed at some point.

Universidad

I would not bank on the 'regular income' to avoid IHT, not being closed at some point.

IHT is supposed to be about wealth, not income. You get taxed on income already.

Going that far starts to skirt awfully close to the government telling people what they are allowed to do with their income. A very dangerous game to play in times like these.