Excerpt: Taking the lump sum will give you considerably more flexibility and control over the timing and amount of distributions than the annuity. This could be a big factor in your decision if you need more income over the next 10 years prior to receiving social security. I would be in favor of the lump sum here. If you take the annuity, you will be counting on your company's (or potentially a company that acquires your company in the future) ability to make those payments to you for the rest of your life and your spouse's life. The Pension Benefit Guaranty Corp may or may not insure all of your benefits if your company can't meet its obligations.