small pension due but still working, defer?

xylophone

Usually there is no benefit for delaying payment of a final salary scheme past the normal retirement date. You just lose payments.

Depends on the scheme.

For example

http://www.lgps2014.org/content/deferred-benefits

"Your deferred benefit will be paid at your Normal Pension Age unless you choose to take it before then, when it would normally be reduced as you would be drawing it early, or you choose to take it later, when it would be increased because you would be drawing it later."

Baalmaiden

xylophone wrote: »

You don't have to buy an annuity even under current rules and a Final Salary pension is not a purchased annuity.

You say the pension is a mixture of a DB and a DC scheme.

Do you mean that the employer closed a DB scheme (and you have a pension from that portion) and opened a DC scheme and you have a "pot" from that?

https://www.pensionwise.gov.uk/ might be of interest.

Does your current employer provide a pension?

Have you obtained a state pension forecast?

https://www.gov.uk/government/news/millions-more-offered-free-pension-statement

If you defer drawing the old pension, will it continue to increase in deferment?

Hi, sorry If I didn't explain myself very well.
My current employer does have a pension scheme which I get at normal retirement age of 66. I have had a state pension forecast and should get a full pension if I stay in work till then.
The pension I'm asking about is one I had with a former employer and stopped paying into when I left 15 years ago. It had a final salary component and a defined contribution component which can be taken together or separately.
I am still waiting for the pension administrators to answer the question of whether the pension should increase if I defer it for longer.
I do have the choice of taking the final salary part and treating the rest just like a separate pension - cashing it or buying an annuity / drawdown. However I was thinking that if I deferred it for a few more years they would probably increase the size of the pot more than if I took the money and invested it myself.

Thanks all for your comments

mgdavid

Baalmaiden wrote: »

........
I am still waiting for the pension administrators to answer the question of whether the pension should increase if I defer it for longer.
I do have the choice of taking the final salary part and treating the rest just like a separate pension - cashing it or buying an annuity / drawdown. ..........

Can't conclude anything much without getting the answer back from the Administrators. It does sound like two separate pensions (as I suggested earlier) and they may well be best treated separately.
You might want to take the final salary one, and put all of the monthly payments straight into a new Personal Pension plan or a SIPP, which will get you 20% tax rebate added - free money! This will accumulate and might for instance allow you to retire a year or two early.

xylophone

I have had a state pension forecast and should get a full pension if I stay in work till then.

This is a "new state pension" statement?