Correspondence from readers on topical subjects.
Commuted sums
Please do not forget to factor inheritance into the equations. A lump sum, if not spent, can be inherited by a dependant or other beneficiary. In some final salary schemes the pensioner's pension while alive is reduced, but there is no corresponding reduction to the dependant's pension on the pensioner's death. A lump sum is an annuity in reverse so expected life is important to the decision.
Correspondence from readers on topical subjects.
Commuted sums
Please do not forget to factor inheritance into the equations. A lump sum, if not spent, can be inherited by a dependant or other beneficiary. In some final salary schemes the pensioner's pension while alive is reduced, but there is no corresponding reduction to the dependant's pension on the pensioner's death. A lump sum is an annuity in reverse so expected life is important to the decision.