Do not look at your pension in isolation
You must not take into consideration your pension and retirement options in isolation. There is the requirement to consider the total income, the gross and the net and the level of taxation that you will be able to support. Before your retirement you might have invested a lot in capital growth. Now is the time to divert and make investments that are meant to produce a better level of income instead of the capital growth. After retirement you may be facing multiple financial requirements and it is essential that you take care of them in a reasonable and systematic manner.
Reduction of income tax and inheritance tax planning may be possible with some tax planning opportunities that are dependent on equalizing your properties to that of your spouse are also a part of your option. It is true that your pension is payable to you only and it is you who will pay any tax on the same as your income, you can always take the benefits of the maximum of the lump sum that is available to you from your pension fund at the commencement of any plan.
You would also be able to set up the “purchased life annuity” in favor of your spouse. Thereafter the said income shall be taxed as the income of your spouse and not yours despite your having life insurance coverage. Hence you may not look at your pension in isolation and should take into account all these options available to you.