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Should I take my pension as a lump sum or a monthly annuity?

It depends on the numbers and your situation. A monthly pension is guaranteed income for life that you can't outlive – valuable longevity protection – but it usually has no inflation adjustment and may shrink or stop for a surviving spouse depending on the survivor option you elect. A lump sum gives you control, investment flexibility, and money for heirs, but you bear the market and longevity risk. A useful first test: divide the annual pension by the lump sum to get a payout rate. If a $300,000 lump sum buys $20,000 a year, that's about 6.7%, which is hard to safely replicate yourself, tilting toward the pension. Also check the plan sponsor's financial strength and whether PBGC insurance applies. Compare scenarios at wealthserene.com/tools/retirement-planner.

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Educational disclaimer. Everything on WealthSerene.com is educational and is not investment advice. Projections and calculations are illustrative; actual results depend on market conditions, your situation and factors outside this tool’s scope. For a decision specific to your situation, consult a qualified financial professional. View full disclosures