A lump sum is a single payment of

money Money is any item or verifiable record that is generally accepted as payment for goods and services and repayment of debts, such as taxes, in a particular country or socio-economic context. The primary functions which distinguish money ar ...

, as opposed to a series of payments made over time (such as an annuity). The

United States Department of Housing and Urban Development The United States Department of Housing and Urban Development (HUD) is one of the executive departments of the U.S. federal government. It administers federal housing and urban development laws. It is headed by the Secretary of Housing and U ...

distinguishes between "

price analysis Price analysis is the study of how a price relates to other things such as product demand. Its specfici meaning varies in contexts such as marketing and general business. Marketing In marketing, price analysis refers to the analysis of consum ...

" and " cost analysis" by whether the decision maker compares lump sum amounts, or subjects contract prices to an itemized cost breakdown. In 1911, American union leaders including Samuel Gompers of the American Federation of Labor expressed opposition to lump sums being awarded to their members pursuant to a new workers compensation law, saying that when they received lump sums rather than periodic payments the risk of them squandering the money was greater. ''

The Financial Times The ''Financial Times'' (''FT'') is a British daily newspaper printed in broadsheet and published digitally that focuses on business and economic current affairs. Based in London, England, the paper is owned by a Japanese holding company, Nikke ...

'' reported in July 2011 that research by Prudential had found that 79% of polled pensioners in the UK collecting a company or private pension that year took a tax-free lump sum as part of their retirement benefits, as compared to 76% in 2008. Prudential was of the view that for many retirees, a lump sum at the time of retirement was the most tax efficient option. However, Prudential's head of business development, Vince Smith Hughes, said, "some pensioners are beginning to regret the way they used the tax-free cash. The days of buying a shiny new car or going on a once-in-a-lifetime holiday may be gone."

References

External links

SEC guidelines for lump sum payouts''Red Book - Form of Contract, Lump Sum Contracts''
Contracts Working Party, IChemE, 2001,
''The lump sum handbook: investment and tax strategies for a secure retirement''"> ''The lump sum handbook: investment and tax strategies for a secure retirement''
Anthony Gallea, Prentice Hall, 1993,
''Lump-sum distributions from retirement saving plans: receipt and utilization''
James M. Poterba, Steven F. Venti, David A. Wise, National Bureau of Economic Research, 1995
''Veterans' benefits; veterans have mixed views on a lump sum disability payment option: report to the chairman, Committee on Veterans' Affairs, House of Representatives''
DIANE Publishing,
''International claims: Their settlement by lump sum agreements''
Lillich, Richard B., Weston, Burns H., University Press of Virginia, 1975, {{ISBN, 0-8139-0642-3 Payments fr:Forfait

See also

References

External links