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I'm soon to retire, and have the option to take some money in an index-linked pension (taxable) or as a tax-free lump sum. The conversion rate is £18 cash for every £1 reduction of pension. I don't have an immediate use for the lump sum and not inclined to invest at high risk, so for simplicity assume I can get a (net) return equivalent to the annual index on the pension. My question to any actuaries out there is, how many years should I hope to live in order to get better value from the pension than from the lump sum? Logic suggests it should be at least 18; if the extra pension is taxed at 20%, maybe as much as 23 years. Obviously over that time scale there are many unknowns, but there must be a formula underpinning the offer of 18:1. Reply to me please and I'll summarize. Allan This email and any attachments are intended for the named recipient only. Its unauthorised use, distribution, disclosure, storage or copying is not permitted. If you have received it in error, please destroy all copies and notify the sender. In messages of a non-business nature, the views and opinions expressed are the author's own and do not necessarily reflect those of Cefas. Communications on Cefas’ computer systems may be monitored and/or recorded to secure the effective operation of the system and for other lawful purposes. You may leave the list at any time by sending the command SIGNOFF allstat to [log in to unmask], leaving the subject line blank.