Keep in mind that a pension is typically an annuity.

A simple view of annuities is that they end when
you die, they die, or the money dies -- which ever
comes first.

I'd take the other lifespans into account in
addition to my own.

If you take the lump sum and expect to invest it to produce the
inflation adjusted equivalent of the initial monthly payment you are
assuming that you can invest the lump sum in something that will pay
the discount rate used to compute the present value of the annuity plus
the inflation rate (ignoring tax effects).

--
_Bill_

"HW "Skip" Weldon" <skip5700removethis[at]hotmail.com> wrote in message
news:11ie81pm6m2a6gvgu8kbo4r04404ge9keu[at]4ax.com...
- quote -

For one, expected lifespan. A fixed monthly check which never changes loses
value each year according to the rate of inflation. Most people are unaware
that, should they live 30 years, a check which seems like a healthy amount
to live on today could erode to a payment on a compact car in 30 years.

In my planning, I expect to take the lump sum when my time comes, mostly for
the above reason.

Mike

Present value of an annuity.

"HW "Skip" Weldon" <skip5700removethis[at]hotmail.com> wrote in message
news:11ie81pm6m2a6gvgu8kbo4r04404ge9keu[at]4ax.com...
- quote -

Yet another pension plan (United Airlines) has been handed off to an
already-stressed PBGC. To those pension plan participants who must
choose between a lum-sum and monthly checks, what factors should they
consider?


-HW "Skip" Weldon
Columbia, SC