Should the pension fund be drawn in the form of a pension or a lump sum?

The decision between a pension or a lump sum cannot be answered in general terms and should be weighed up carefully. It is a very individual decision that depends on various factors. In principle, however, it can be said that drawing a pension is uncomplicated and offers a great deal of security. This also applies to a longer life expectancy, as the pension is guaranteed for life. Financially, the pension can be particularly advantageous if there is a large age difference between the spouses or if children have pension entitlements. The advantage of a lump-sum withdrawal is that the tax burden is usually lower in the long term than with a pension withdrawal. Withdrawing a lump sum gives you the opportunity to organise the capital as you wish and surviving dependants are better off in the event of an early death after retirement. However, the capital must be organised according to needs and should generate income and not simply lie idle in an account. This presupposes that you consider the topic of investments and are prepared to accept certain risks and fluctuations. Ultimately, the decision depends on personal circumstances, goals and preferences. An interim solution with a combination of pension and capital can often be a sensible option.