I have been granted ill health early retirement from my final salary company scheme 3 years before my normal retirement date. I have taken the maximum lump sum pay out of £28K which will need to supplement my meagre £4280 annual income until I can draw my State Pension. I have calculated I need to draw £8K per year from the lumpsum to live comfortably. How can I make the most of saving the £28K lumpsum for this purpose?

Among other things you should investigate annuities, monthly interest savings accounts and accounts that will let you withdraw regular sums (subject to, say, 30 or 90 days notice)