Laws and regulations have changed this year to make things simpler and more financially beneficial for the employers. There are more companies and organizations offering their employees and former employees, a more lump-sum amount payouts with apprehended and frozen defined benefits and retirement plans. So, it's up to the employees to decide whether to accept their employer's offer or not to accept it. It's all up to you. The employers can't force you. How you will or what you are going to do with the money.
There are many examples you can find around your surroundings, where there are some persons who have taken an early retirement from their respective organizations and companies. In that case, they have received their pensions in a lump-sum amount. So, in some circumstance, their families including them are not qualifying for the Medicare as their eligibility for their insurance company already ran out and also they don't have any kind of private insurance policies or plans. So, what they are going to do in such circumstances? They are going to spend their whole hard earned money and all the retirement benefits on their Medicare.
The ground reality is that you need to invest your hard earn retirement lump-sum money for your own safety purposes. May be some times in a private annuity or buy some long-term insurance plans to protect yourself as well as your family from medicate disasters that can wipe you out and you lost your whole retirement benefits. If possible, get invest half portion of your lump-sum retirement benefits money. It will help you in the difficult times when you are in the urgent need of any financial benefits. Don't treat your hard earned money like lottery, and don't let that money slip away from you because you will not get this again.
So, always invest some portion of your retirement benefits in any kind of trust worth safety insurance and other plans. They will earn you some financial benefits at the time of the Medicare especially when you are in the need of some financial assistance.