Pension, lump sum or a mix?

The rule of thumb is: the cost of living (i.e., housing and ancillary housing costs, as well as insurance and everything you need for your daily needs) should be covered by the pension from the OASI and the pension fund. Whatever additional savings you have can be withdrawn as capital.

A pension provides you with a secure monthly income for the rest of your life. And if you die, your spouse will receive a survivor’s pension, which is generally 60 percent of your original pension.

Good to know: 
There is no protection against inflation, meaning that the pension fund is not obliged to adjust your retirement benefits to account for higher costs. Your pension must be taxed as income.

If you decide on a capital withdrawal, you hold the keys to your own financial planning in your hands. And if you die, the remaining funds are paid to your heirs. 

Good to know: The paid-out capital will be taxed once at a reduced rate.