QUESTION:
I plan to retire next year and my superannuation offers the choice of either an indexed pension, a lump sum payment, or a non-indexed pension for life calculated at 9.25 per cent of the lump sum. I prefer balanced investments and if I took the lump sum would invest it in shares through a managed fund. I am healthy and have no reason to believe I won't live for another 25 years or more. What are your thoughts on these options?
ANSWER:
This is always a difficult choice - major considerations are your confidence in handling money, how long you think you will live, and whether leaving money to other family members is important to you. Based on the information provided, you seem well placed to take the lump sum and manage the money yourself.
