Some schemes have a compulsory lump sum amount which you have to take. Some you 'buy' your lump sum by having a reduced pension. 'Buying' a lump sum is rarely a good financial move (assuming you don't have stacks of credit card debt at high interest rates too pay off!), but if you are thinking about it, find out what the rate is and post it here if you want an opinion.

If you are retiring AND are good at home maintenance type stuff (unblocking loos, sorting out guttering etc) AND you live in an area where there are cheapo BTLs, then a BTL might be a good investment. But if you are going to have to pay someone else to manage it, then I wouldn't consider it.

What to do with your lump sum? Clear any of your mortgage that remains. Think about other large costs you may have coming up - replace the car? Conservatory? Then stick the rest into equities by using up your ISA allowance each year. You have a very good guaranteed pension, so you don't need to be paranoid about risk.

manzanilla