On retirement, many people with a private pension are given the chance to take their annuities as a monthly pension or to take an upfront cash payment with reduced monthly payments thereafter.

It depends on your circumstances as to which option you decide to take and many people do decide to take the cash payment, which can be quite substantial after a lifetime of saving for the pension.

The option to take a cash payment can make all the difference to your retirement as you can finally take that blow-the-budget holiday that you have always wanted to book but have never had the time or money; or treat the grandchildren to some really special gifts or even yourself to something you have always wanted such as a new car or kitchen.

Of course, you have to realise that taking this cash up front will mean that your monthly pension is substantially reduced, so only do this if you know that you will still have enough to live on and enjoy a decent standard of living.

But if you can afford to do this, why not splash out on whatever you have wanted your whole life and start retirement with a bang. Whether it is first class flights to New York, a transatlantic cruise or a holiday home, enjoy yourself after a lifetime of working.