How much pension to convert to lump sum

[Bsmirched]

I'm about to take ill health retirement at the age of 51. I have incurable metastatic breast cancer but am receiving treatment to keep me going for a while yet hopefully.
I will receive a lump sum and then a monthly payment amount, but have the option to basically double my lump sum for a relatively small drop in my monthly amount.

My thinking is... whilst I'm trying to be optimistic, it's unlikely I'll still be here in 5 years, so the bigger lump sum seems the better option as I won't get enough years of monthly pension to get the equivalent amount through that and it would also give us some more funds to do some nice things as a family. Am I being too simplistic and is there something obvious I'm missing? Any thoughts gratefully received!

I'm sorry you are in poor health that this is even a question; is there a widow/er pension to be left on death?

My husband will get approx 45% of my pension and my children will get a small amount until they're 23. DH will still be working, too.

If your husband isn't going to need more pension income as he gets older then the lump sum sounds attractive.

Do the sums though about his position and what difference it would make to him once you are gone and he is getting 45% of the reduced sum.

Thank you.

Is it a Local Government Pension? It won't affect your spouses pension entitlement if so and the option to convert is likely to be in your best interest.

Teachers' pensions, so very similar I think. Thank you.

I'd take the higher lump sum and use the money to make wonderful memories with your DH and kids. DH will still get 45 percent and some for kids until 23. So sorry you are in this position though. Do you have life insurance on house so your DH and kids would be mortgage free?

Thank you.

Sorry to hear about your situation and wishing you the best.

If I were in your shoes, I'd take the bigger lump now because - it would allow more flexibility about how I could use it, whether for special family events, or to use if I had to spend money on something to do with the illness and treatment.

I’m sorry to hear of your situation.
If your pension is above the personal tax allowance threshold, then taking a lump sum will reduce your tax liability, so paying less tax on your pension overall.

Also, I know this doesn’t apply at present thankfully, but if things take a turn for the worse in the future you can apply for your state pension early on the grounds of terminal illness (where the prognosis is 6 months or less).

Wishing you all the best.

You can't take your State Pension early under any circumstances.
https://www.moneyhelper.org.uk/en/pensions-and-retirement/taking-your-pension/early-retirement-because-of-illness-sickness-or-disability#can-i-get-my-state-pension-early-due-to-ill-health

However often you can get other pensions early due to terminal diagnosis but you will need to enquire about each one.

I came back on to say it's not the State pension that could be claimed early but other benefits that could be fast tracked, (I believe it was mooted by some MP's in December but then rejected).
Thanks to @HappyHolidai for clarifying.