My mother in law chose not to retire at 60 and has worked another 5 years. At the time she chose to defer her state pension and it's been increasing in value since. Now at 65, she has chosen to retire she has an option to take a lump sum of £41,000 (minus tax at 20%) or take £86 extra in her weekly pension.
My gut feeling is that it's probably best to take the lump sum and either invest it or maybe use it to help fund moving into another house. They currently live in a mid terrace house worth ~£110,000. They're considering maybe buying a smaller better bungalow in a better location for ~£140,000.
I just want to make sure we've not overlooked anything before taking the plung and calling off the money. Does anyone have any thoughts on NOT taking the lump sum or maybe a better way to invest the lump sum?
Thanks for taking the time to read.