Taking a lump sum payment of a portion, or all, of your pension is not a decision that should be taken lightly. Do not let lump sum numbers blind you from what is actually occurring. If the pension plan is allowing you to take cash now, they are playing the odds that it will cost them LESS to pay you now versus paying you for the rest of your life.
There are many questions that need answered before deciding to take the lump sum payment. This is especially true depending on if you are married, or not, and what your cashflow needs are in retirement. This flowchart can be used as a roadmap to make the decision that is best for you.