GEPF

Is It Better To Take A Lump Sum Or Monthly Pension

When it comes to retirement preparation, one of the difficult decisions you find yourself making is whether to take your pension in a lump sum or monthly each one comes with its advantages and disadvantages but let’s focus on the advantages of these(lump sum or month ). The lump sum provides the pensioner potential and flexibility in investment growth, monthly pension provides you with a dream and steady income for life.

Knowing the pros and cons of each of the options will help make a decision that will align with long-term financial security.

Benefits Of Taking A Lump Sum Payment Of Your Pension

Immediate access to funds
Investment Opportunities
Estate Planning
Protection against company risk
Inflation protection
Tax planning flexibility

Benefits Of Taking A Monthly Pension

Guaranteed income for life
No investment management required
Inflation adjustment
Tax efficiency
Spousal and survivor benefits
Budgeting ease
Protection from poor investment decision
Longevity Protection

READ ALSO: How much is a gepf spouse pension?

GEPF Payment Of Lump Sum And Monthly Pension To Members Who Have Retire Within Ten Years Of Pension

The benefit structure for the payment of this benefit is determined based on the total pensionable service, without taking into account any service reduction resulting from partial withdrawals. However, the actual calculation of the benefit amounts considered the impact of service reduction due to partial withdrawals.

If a member has been of GEPF for ten(10) years or more, but as a result of frequent partial withdrawals and ends up with less of his pensionable service, they will still be qualified for the standard benefit structure.

To Conclude

Taking a lump sum or monthly pension solely depends on the individual’s circumstances, goals, and risk tolerance toward their future. Visit the official website for updates

Linda Nartey