Cheddar has a good point regarding the riskiness, but makes a mistake about the return. It's not a 7% return -- you're giving up a year of pension in exchange for each 7% increase. Each year, then will take a bit over 14 years to "pay off." You could run a spreadsheet to figure it out exactly, but a back of the envelope calculation suggests that an annual return equivalent is (7% * years you collect pension - 1 years pension) divided by (years you collect pension). If you die after 1 year, you'll have forfeited a year's pension. If you live 14 years, you'll come out about even. If you live 42 years, you'll have an annual return equivalent of about (.07*42-1)/42 = 4.6%.