The lump sum reduces your monthly pension benefit. Therefore, check carefully whether you will have enough pension left for the rest of your life after you take a lump sum.

Furthermore, it may affect, for example, your tax return and any benefits you receive. This is because your income is increased one year by the lump sum. This can cause you to fall into a higher tax bracket and thus have to pay more tax. It may also mean that you temporarily stop receiving an allowance. If you do not spend the amount immediately, it may also have consequences for the wealth tax in box 3.