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Whether to retain LGPS deferred benefits or combine with current service?

Hi, I’m wondering if anyone can help me please? 
I’ve received an email from my LGPS provider asking if I’d like to retain my deferred pension benefits or combine them with my present job. 
I’m not financially minded and can’t work out what’s best. I’m 55 years old, female and am not intending to retire until 67 years old. 
I earned more in my previous job and am entitled to a lump sum retirement grant (only optional in my current scheme). The email says that my pensionable pay (current value) of my previous job is £33,530 whereas my current salary is £17,600 and not likely to rise (teaching assistant) Plus there was a 10 year break in service between jobs, raising a family. 
Thank you for any guidance you can offer me. 

Comments

  • Johnnyboy11
    Johnnyboy11 Posts: 342 Forumite
    Part of the Furniture 100 Posts
    Look into Rule of 85 protection for your pre-2008 pension, which will let you retire at age 55 with an actuarial reduction of about 20% (5 years at 4%), or retire at age 60 with no actuarial reduction. Your membership of the scheme still runs even if your pension was deferred, so still counts towards meeting the R85 criteria.
  • Your previous service pension will be final-salary related, so it would not be in your interest to combine.
    Your current service pension is CARE (career average), so a better deal for those, like yourself, on a lower salary.
  • thank you very much, that’s very helpful, I appreciate your time and advice 😊
  • Silvertabby
    Silvertabby Posts: 10,331 Forumite
    Ninth Anniversary 10,000 Posts Name Dropper Photogenic
    edited 27 June 2020 at 2:47PM
    As the others have said, keeping your records separate means that you keep the final salary aspect  and R85 protections of your earlier benefits, which will be payable in full from age 60.

    However, if you were to retire on ill health grounds or be made redundant, then you may  have been better off combining.  It's real crystal ball stuff, I'm afraid - and once you have made your decision you can't revisit that if your circumstances change.
  • Thank you very much, that’s really helpful, thank you for taking the time and trouble to offer advice, I appreciate it 😊
  • OldBeanz
    OldBeanz Posts: 1,438 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Thank you very much, that’s really helpful, thank you for taking the time and trouble to offer advice, I appreciate it 😊
    Be sure and research AVC's as you can pay into them separately and take the cash free as a lump sum when you draw your CARE pension.
  • Okay, thank you, I’ll look into that, thank you very much for your suggestion 😊
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