# How many have chosen the new PFL over a lump sum payment



## TCM621 (9 Apr 2021)

Now that the new Pension for life has been around for awhile, I am curious as to how many people received the PSC or applied to get a lump sum. My sense is that most are still getting the lump sum, am I way off on that? Why did you choose what you did?


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## meni0n (27 Apr 2021)

Chose lump sum for the one claim that got processed since PFL.... will choose the same for the rest once they get approved


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## theoldyoungguy (10 Jul 2021)

I have done the math on this, in most instances if you were to invest 100% of the Lump Sum, you will do way better in the long term with that. If you are not financially savvy and/or expect to live longer than 25 more years I would go with the monthly payment. If you were to run the numbers on the Lump Sum vs the monthly payment with both going 100% into an investment account the Lump Sum wins every time


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## bamboleyo (11 Jul 2021)

PSC is tax free with inflation adjusted premiums. Investment of lump sum becomes taxable income. 
if award is significant (50%+) and Unless i have a principle protected investment at 6% annual, i would keep the PSC..
if the award is 30% or less or if there is a significant debt at a high interest then lump sum may be a better choice…


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## hattrick72 (13 Jul 2021)

bamboleyo said:


> PSC is tax free with inflation adjusted premiums. Investment of lump sum becomes taxable income.
> if award is significant (50%+) and Unless i have a principle protected investment at 6% annual, i would keep the PSC..
> if the award is 30% or less or if there is a significant debt at a high interest then lump sum may be a better choice…


Investment of lump sum becomes taxable, but you are not losing 50% off what is given. 

Investments are only taxed if you sell them and even then only 50% of the gain at your marginal rate so max 25% ish


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## theoldyoungguy (26 Jul 2021)

Both of you guys have valid points, and there is absolutely times when it makes more sense to take the monthly payment. My point is that it is individual and people shouldn't assume the monthly payment is better.


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