Retirement: Should I take my pension fund assets as a pension or a lump sum?

Pensions are taxed each year as income. By contrast, lump-sum withdrawals are taxed only once and at a lower rate. That is why it is usually more attractive from a tax perspective to take a lump sum. When deciding how to take your pension fund assets, however, you should never just consider tax-related aspects. There are many other equally important factors to take into account, not least financial security for your surviving dependents.