DB scheme: take annual pension only or smaller pension plus lump-sum?

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Scenario: Tesco DB scheme

Two options

Pension 6k pa, no lump-sum

Pension 3k pa plus 30k lump-sum

There is a survivors pension of 50%.

I am wondering which option is better?

I assume it depends on inflation / income tax, etc.?

I welcome any comments, thanks.
 
I agree 100% with Sarenco unless the individual has fairly serious known health issues.

That said, if you want to be methodical about it, model it on a spreadsheet, year by year. Look at the person's specific tax position. Take the net (after taxation) yearly annuity payment, include indexation if relevant and see how long it takes for the net annuity payments to exceed €30,000 in total. My guess is not very long.

I'm not familiar with the Tesco DB pension scheme, so you should also ask for a copy of the latest statement showing what sort of financial shape it's in.
 
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