Just thinking of applying for my pension and then this question arises! Decisions, decisions! So, to outline my circumstances. We have (wife and I both retiring) a comfortable amount of cash savings which could keep us going for many years. We have no need for a lump sum, no big expenditure plans (although one possibility I will mention in a bit) The regular monthly payment from our pension would cover our daily expenses comfortably too. No mortgage, kids etc. So it’s all about having money to spend on enjoying life. My calculations suggest that increasing the lump sum to the max would be the equivalent roughly 10 years of the ‘lost’ income. That’s before tax. As the lump sum is tax free this could be a benefit. On the down side if the lump sum was not spent it would need to be invested somewhere to keep up with the index linked increases the pension would have each year. My only possible need for a larger lump sum would be to assist towards the purchase of a property for my son, which in turn would provide some monthly income as he would be expected to pay us back! So, thoughts? I’m not asking for advice. Everyone’s circumstances are different. Just interested in people’s opinions, views, what would you do? What would be most financially beneficial? Of course a lot of that depends on how long one lives for!!