Taking benefits as income
Take a guaranteed income for the rest of your life.
You take your benefits as a regular income, paid directly into your bank account. It’s guaranteed to last you for the rest of your life, so you don’t need to worry about this income running out. Depending on which scheme you’re a member of, your income could go up a bit every year to make up for rising prices. But these increases are capped, so they might not keep up if inflation is high.
Swap a portion of your benefits for a tax-free lump sum and take a lower income
Instead of taking all your benefits as a monthly income, you can swap some of it for a cash lump sum. You’ll get this money tax free. You can take the rest of your benefits as an income, but the value will be lower.