TAKING

your annuity as a lump sum could be tempting, but you might be better off sticking with small regular payments. Experts recommend that you get financial advice before accepting a lump sum offer. Charlotte Jackson, head of pensions operations at the Money and Pensions Service, says: ‘Anyone considering giving up a guaranteed income for life should look at the pros and cons — it’s not a decision that can be undone. A lump sum can be useful in some situations but may mean less in the long run.’

Get free specialist guidance from The Pensions Advisory Service: 0800 011 3797.