Pension vs payout

It's not an issue for me anytime soon, but I am curious on everyone's thoughts on taking a pension vs taking a payout, from superannuation when you you are retiring / retired.

 

One is tax free. The other may not be and may mean investment earnings are then subject to personal tax. Lump sums are not tax free in every case.
Super is intended to assist retirement goals and objectives and produces tax free investment earnings. Ripping it all out and spending it wont really assist retirement objectives.

 

@Paul@PFI, What about taking a partial lump sump (over age 60 and retired) to pay off the PPOR mortgage?

 

Personally, I have considered this at length, I still have a large mortgage (for me) and have been salary sacrificing most of my pay for several years to super. I have finally reached the break even point where I can pay off the mortgage and tax component maybe with a few bucks left over. I could leave work soonish and do this and return to a different employer if I chose. For me, the TTR is not preferred because of the psychological satisfaction of the debt reduction, I would only be working to pay it off and once the mortgage is paid I can live on very little income. Plus, I have had enough of working, it gives me the emotional, financial and psychological mind space to say, "I miss work and want to go back" or, "I am ready to start unpaid work, volunteering, and whatever I want". Obviously I would have some years to go before qualifying for the age pension, but I have income from a small rental and can live very cheaply.
I never thought I would say this (but then I have never been this old before, lol) but, at the young age of almost 60 I am feeling some ageism creeping into my workplace.

 

If you take the lump sum where will you put it?
You will also pay tax on the interest if invested elsewhere.

Unless you can invest the money and get a better return than Super you are better off leaving it there and drawing the money as a pension.

 

I’d pay the mortgage out completely