Should Kathy take monthly payments or the commuted value of her pension?

Kathy, who built several years of pensionable service before resigning, has roughly a year to make a hard call: keep her public service pension as guaranteed monthly income for life, or take the commuted value as a lump sum she manages herself. A bank advisor nudged her toward the cash, which is exactly the kind of decision worth slowing down on. Allan lays out the trade-offs plainly. The pension offers indexed, government-backed income with no investing required, but leaves nothing to heirs, while the lump sum offers flexibility, the chance to build an estate, and the potential for growth, at the cost of taking on investment and longevity risk yourself. He notes there is no universal right answer, since it turns on health, comfort with investing, other income, and discipline. It is most relevant to public sector members facing this one-time choice.