Hello and welcome. Thank you for providing an opportunity to assist you.
Is this your Defined-contribution pension OR Defined benefit pension ? Let me explain why I am asking this.
To begin with, as a rule of the thumb, you should avoid taking lump sum as you will remain with LESS amount of money to buy yourself an annuity. If it is your defined contribution pension, you have an option to take tax free lumpsum anything up to a quarter (25%) of the accumulated value of your pension pot. But there are different rules for people who have a protected higher entitlement or a pension pot larger than the Lifetime Allowance.
In case of Defined benefit pensions, these pensions generate a retirement income that’s calculated as a proportion of your salary. The amount of pension lump sum you can take will be determined by the rules of the specific scheme you’re a member of.Taking this further,
note that rules for how you can access your pension pots were made more flexible from 27 March 2014, and will be made even more flexible from April 2015.Coming to the core of your question,
it is incorrect that your spouse will not be entitled a lump sum. Here is the HMRC link that deals with this.
what I am trying to explain is that you should not go for lump sum, in part or in whole, unless your require your money NOW. Otherwise, it is bound to leave you with lesser amount in the older age. Read the following for your general reference.
I am sure this would help.
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