Personal Finance and Investing

or SSI?

That makes a difference.

If you are on early Soc. Sec. ( NOT disability) you will be eligible for Medicare at age 65 , and get the card 6 months after your 65th birthday.
So if you think you can make it between now and then without any serious medical expenses, you don't have to sweat losing Medicaid.

You also might be able to STOP your Soc. Sec. payments until you reach 65, and live off the 35,000 lump sum.
Then apply at age 65 for reg. Soc. Sec, ( unless they have raised the "full" retirement age to 67 for your age group".

If you do take the lump sum, you might have to pay back any Medicaid you got for that month.?

So get paper and pencil and figure out the different choices, and get the facts you need.

Also.....find out
do you have to pay tax on the money? If 1/2 of your annual Soc. Sec. PLUS any other income adds up to a certain amount, you may have to pay tax, both Fed and state ( if your are in a income tax state)
There are worksheets online that will allow you to figure that out.

Plus.....is that company likely to be around to pay you a monthly retirement in the years to come?
If they are trying to lump sum their retirees, I would be thinking they are trying to get rid of their pension obligations now, given the economy.
Might be that a bird in the hand is worth more, etc.

I had to make the same choices back in 2008, so I know it takes a bit to pencil things out.
But is worth the effort.

Good luck.