Taking deferred DB pension in current climate

NowhereGirl12

I have a small deferred DB pension which I'm thinking of taking at the end of this year due to the current cost of living crisis which means the extra money it will provide is becoming pretty much essential. I'll be 57, so three years before the non-reduced age for this pension of 60. The actuarial reduction is a factor of 0.89. After taking a lump sum it will provide me with a couple of hundred pounds a month (after tax, but I'll remain a basic rate tax payer) and the lump sum will pay off credit card debts, currently being paid off at £300pm from my income. So it should ultimately mean I should have about £500 more a month . Which will hopefully cover the higher food and energy bills without having to go into debt (as has happened in the past).
This is all small beans compared to most people of this forum I know, but it will hopefully make a useful difference to my income for me. Is there something that I'm missing about the current economic situation, inflation etc. which means that though this seems good on paper for me on a personal level, it's actually really bad timing to take the money?

Albermarle

If you need the money now, especially if it can reduce credit card debt, then it could make sense to take it in my opinion.
The economic situation in itself is only a factor in how it is impacting your bills, it does not directly on a decision to take a DB pension.

Flugelhorn

the only thing about hanging on to take the DB is that there won't be an actuarial reduction applied BUT it means taking it now  you get to take it for longer. The current economic climate isn't any reason not to take it. 
I took my DB pension at 60 and it goes up by CPI, if I had stayed at work my salary wouldn't have gone up by that much 

NowhereGirl12

Thank you both very much for your replies. Reassuring, as I was just worried there might be something obvious I was missing that would mean taking it now was crazy!

LHW99

And you could always add some of that extra to a SIPP (or your current employer pension scheme if you have one) if you don't need it all, and have it available at a later date.

Also check your state pension provision, to make sure you will have a full pension when you get to SPA - read it all and come back and ask if you don't understand because there are plenty of helpful people here who will explain.

https://www.gov.uk/check-state-pension

NowhereGirl12

Yes, I'll be getting the full state pension at age 67 - already 39 years full contributions - £185.15 a week and it says it can't be improved upon.
I don't have a SIPP but am a current member of a LGPS scheme so that's a good idea to pay some extra into there, I'll look into that, I seem to remember it's quite straightforward to do as a lump sum.

Albermarle

I don't have a SIPP but am a current member of a LGPS scheme so that's a good idea to pay some extra into there, I'll look into that, I seem to remember it's quite straightforward to do as a lump sum.

Definitely worth looking into that .