Should James take a lump-sum pension buyout and invest the money himself?

James works for an Atlantic provincial government, is turning 55, and will soon have nearly three decades of service behind him as he heads for retirement. His question is one many soon-to-be pensioners face: keep the defined benefit pension and its steady, guaranteed monthly income, or take the commuted lump sum and invest it himself. Allan lays out the real trade-offs on each side, from the security and longevity protection of a pension to the control, flexibility, and estate potential of managing the money personally, along with the responsibility and market risk that come with the latter. The decision tends to hinge on temperament, other income sources, health, and what you want to leave behind, rather than on a single rate of return. It is essential reading for any long-tenured employee handed a buyout offer and a deadline.