Flexible savings
USS offers two components:
Retirement Income Builder: The Retirement Income Builder gives you a guaranteed income for life and a one-off, cash lump sum based on your salary and years of service. You’ll also need to retire to access your Retirement Income Builder benefits, usually at the Normal Pension Age (which aligns with the State Pension age and is currently 66). You cannot make AVCs to this part of your pension.
Investment Builder: A flexible savings pot where you can contribute additional funds. These funds can be taken from when you reach 55 years of age without the need to retire.
Tax efficiency
When you contribute to your pension, the money is deducted from your pay before taxes. This means you only pay tax on the salary you take home, excluding your pension contributions.
If you are considering making a lump sum towards the end of the tax year you must notify USS of your intention by February at the latest to ensure the lump sum is processed in the current tax year. Any requests to USS during March will not be processed in time.
How to make AVCs
You can start making AVCs to the Investment Builder through My USS. You can choose to make a one-off payment, or monthly contributions as a percentage of your salary.
Information from the USS site:
