Foxy, I totally agree with you but, my concern is for the other half who would be guaranteed a 50% cut in the final salary pension and then no one else benefits after that at all.
Unlike a previous poster mentioning the risk of gambling on your age of death, quite the contrary in that if you lock the cash away into property or otherwise, it will not be lost. It would not be an issue as you can receive an income from the drawn cash which you reinvested until the day you die. To be honest, keeping the final salary pension could almost be seen to be "good for you" but a poor choice for the other half.
Guessing as an example, someone aged 50 could invest the lump sum into a fund for 5 years and make the 7% fee back easily over that period (aged 55) when you would start to draw it down and put it into property or otherwise. Every year you could draw another £11k tax free and continue to pump it into a property until the fund is empty. You now receive your pension as a rent and preserve your capital to pass onto your better half and or the kids on your death.
Currently, unless you have an amazing deal and you wish to not transfer out, then you have done no one except yourself a favour.
Not an easy decision I agree and it only works if the money is reinvested. For some this would even allow an income from the money drawn out at aged 55 whereby you might receive it otherwise at 60 or beyond.
j