If you're approaching retirement and have a pension plan, I'm sure you're debating whether to take a lump sum or monthly payment. More companies are offering this choice.

To help you make the right decision, let me give you some facts.

If you don't feel comfortable investing for yourself, take the monthly payout. Many financial advisors will suggest the lump sum, but they all too often are looking at their commissions, not what's best for you.

If you're in poor health, take the lump sum if you have a choice. But if you are healthy and family history points to longevity, take the monthly payout. Most people underestimate how long they'll live. And the lump sum benefit will be calculated against "average life expectancy" which half the population outlives anyway.

Retiring early and taking the lump sum option could cost you 20% of more of you pension.

But if your company is on shaky financial footing, a lump sum payment might make sense.