I can take 80k as a lump sum with a yearly pension of 10k a year, or I can take a yearly pension now of 15k per year, what is the best thing to do? it is an occupational pension.
It's really a personal decison, but the 15 year break even point as suggested above could be upwards of 30 years depending on whether the extra 5000 in pension would be subject to tax, usc etc
The €80k would be available for a big ticket purchase. Car/Wedding/Holiday home etc but could dwindle away. The €15k per annum as against the €10k per annum would allow that extra €5k to be spent on a slightly better lifestyle. My father retired at 62. He is now 92 and enjoying a pension from his employer for the past 30 years.
€80k would get you about 3% per annum and would make you feel good knowing that it was sitting there just in case.
I took the larger lump sum and the smaller regular payment. With the continuing hike in taxes/charges etc. being loaded on us by the Government at the moment, and for the foreseeable, any regular income is going to get hit harder and harder.