What should i do ...?

Sparky1962

I am 57 years old and in employment and I have a smallish (?) local government pension, deferred from my previous employment in local government 1983-1994. I could take this now (with a 4.6% reduction) or leave it to mature in 2022. What should I do ? It doesn't seem as though it will go up much in value the next 2 years. Is it safe where it is compared to my private pension that I pay into from my monthly salary ? I intend to work until I'm at least 65.   

JoeCrystal

Your LGPS is the Defined Benefit scheme, so it doesn't matter what value they are. You get a pension from it for life. If you do not need it, then just leave it until you reach the normal retirement age for the scheme. Compared to your private pension, it is very safe and backed by the Council revenues.

Silvertabby

I was going to ask where you had got the 4.6% early payment reduction from - but, coincidentally(?) that is the 2 years reduction for the lump sum, with the annual pension reduction being 9.9%.
This is from age 58 - if you take your benefits before then then the reductions will be higher.

Note that your Rule of 85 protections are still based on a minimum payment age of 60.  Yes, the rules say that you can ask your (ex) employer to pay some more money into the scheme, to lessen your reductions, but rare, hens and teeth spring to mind.