There are five of them:
A) In the form of capital
B) In the form of financial income
C) In the form of an assured income
D) Mixed: Combination of any of the previous modalities.
E) In the form of non-regular payments.
It should be borne in mind that receipt in the form of financial income or deferred capital implies keeping the rights vested in the pension fund and therefore subject to the same revaluation/risk that corresponds to active members.
In this mode, the beneficiary bears the risk of longevity (living “too long”) in exchange for being the owner of the rights at all times and being able to pass them on to his or her beneficiaries in the event of death.
In contrast, with the (insured) annuity, long-term survival is covered by the insurer, and it is the responsibility of the beneficiary to live “long enough”.
As the fifth alternative means renouncing the possible tax reduction for capital relief, beneficiaries generally choose any of the first three alternatives or the combination of them that best suits their needs (mixed).