re: Offered lump sum payment for old pension. Should I take it? (Im only 36)

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You know exactly what I was trying to say.

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I know what you are saying, and what you are saying is wrong.

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The returns they are promising ($355/ month) includes the probably that some people will die before they reach 65

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What you seem to not realize is that this decreases the value of the lump sum payout. It increases the annuity monthly payout.

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Therefore, if you live to 65 or longer it is a horrible return for you and your family.

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You clearly don't realize that there is a tremendous value in eliminating investment+longevity risk for an individual. If you told Warren Buffett he could lock in 6% returns guaranteed for life, he would take it in a heartbeat

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Instead, they could have $80,000+

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The stock market historically gives ~7% returns (which isn't even close to guaranteed). On his 62 birthday, he would have roughly $60-65k at that point not 80k.

The value of the annuity i going to be roughly $50k based on the tables. The difference of $10k is the payment to protect against longevity risk which is a huge deal