Thanks, no we don't need the money now. I see what you mean about the taxes. It doesn't really make sense for us to pay taxes on the money now...unless as part of us putting it aside for retirement we decide to roll it from an IRA to a Roth, over time, believing that taxes will be higher when we retire.

I agree, there would be flexibility with taking the lump sum and putting it in an IRA and we can invest it how we want to.

Oh, they said the lump sum payout would be actuarily equivalent to if he took the benefits at age 65. Sounds like a good deal to take that money now, and invest it, and let it grow over time so in the end he gets even more than he would have if he just took the benefits at 65.