All USS members have defined benefits.
You build them up in the Retirement Income Builder, which you join automatically, and they’re based on your contributions and the contributions your employer makes for you – the longer you’re a member, the more you build up.
The Retirement Income Builder gives you a guaranteed income for life, when you retire, and you can also choose to take a one-off tax-free lump sum up to a certain limit.
The amount of income and the size of the lump sum are up to you – you can dial up the income and reduce the lump sum or vice versa.
Defined benefit pensions are rare, these days.
According to The Pensions Regulator, of the 39,180 private occupational pension schemes in the UK, there are only 1,100 that provide defined benefits to new members – so USS is among less than 3% of schemes giving new members this type of guaranteed income for life, after you retire.
You’ll have defined contribution savings, if you’re in the Investment Builder.
So, if you’ve recently transferred benefits (even defined benefits) from another pension scheme into USS, you earn above the salary threshold and / or you make additional contributions, this will be you.
With defined contribution, we invest your savings into a range of funds, and the pot you build up is based on the amount you save and the returns on those investments
In the Investment Builder, you can leave it to us to manage your investments for you or you can choose from a range of funds to suit your aims and your ethical beliefs and manage your investments yourself in our member portal, My USS.
The Investment Builder could help you build up a pot to boost your guaranteed defined benefit pension – the best of both worlds.
And there’s a range of flexible ways you can take your Investment Builder pot from age 55 (rising to 57 in 2028) – you don’t even have to be retired.