You need to do the numbers. What is your age, the pension amount, gender, is it single of joint life and what is the lump sum? With those you can work out an IRR and assess that chances that you can do better investing it yourself. FYI I just bought into a State pension because I calculated only a 30% chance of a 60/40 portfolio providing the the income of the pension out to age 82.....my expected life span.
OCCUPY ER, <=>
"The needs of the many outweigh the needs of the few, or the one." - Spock
Retired Mar 2014 at age 52
Target AA: 70% equity funds / 28% TIAA-Traditional/ 2% cash
Target WR: 0.0%,
Income from pension, rent, and eventually SS