This isn't an easy decision. If you hope to leave an estate for your children taking a lump sum may be the better choice. You can withdraw at a rate of about 5 percent from a balanced investment account and maintain constant purchasing power. Taking an annuity will probably provide a larger income, guaranteed for life. Instead of having to manage investments, you'll have to manage how you spend your income.
Most people have more confidence in managing their spending than in managing their investing.
I believe the ideal arrangement for most people is to have a combination of the two, a lifetime income AND an investment fund. Questions of general interest will be answered in future columns.