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

How many have chosen the new Pain and Suffering Compensation over a lump sum payment

  • I chose the lump sum

    Votes: 3 42.9%
  • I chose the PSC

    Votes: 3 42.9%
  • Other

    Votes: 1 14.3%

  • Total voters
    7

TCM621

Sr. Member
Subscriber
Reaction score
144
Points
430
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?
 

meni0n

Sr. Member
Reaction score
0
Points
210
Chose lump sum for the one claim that got processed since PFL.... will choose the same for the rest once they get approved
 
Reaction score
0
Points
210
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
 

bamboleyo

Guest
Reaction score
1
Points
130
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…
 

hattrick72

Jr. Member
Reaction score
26
Points
280
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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