Using DC savings, such as your Investment Builder pot
Find out what you can do with any DC savings you have with USS
Your Investment Builder and your Money Purchase AVC (MPAVC) pots, if you have them, are defined contribution (DC) pension savings. You can use a DC pot in a variety of ways, and you don’t have to wait until you retire.
Before making any decisions about what to do with your pension savings, we recommend that you seek guidance and/or take financial advice. Visit the guidance and financial advice page, to find resources to support your planning and information on how to find a financial adviser.
In most cases, you can start using your DC pot from age 55 (rising to 57 in 2028), but some of the options trigger the Money Purchase Annual Allowance, which limits the total amount of DC pension savings that you and your employer can make each year.
Options for using your DC pension savings, such as the Investment Builder
Use your pot to buy an annuity – a guaranteed income for life – and take part of it as tax-free cash
An annuity gives you a regular guaranteed retirement income for the rest of your life. Watch the video to find out more.
Getting the right annuity for you
MoneyHelper, the free guidance and advice portal set up by the government, has lots of information about finding an annuity, including a market comparison tool.
As a member of USS, you also have access to the guided annuity service provided by HUB Financial Solutions Limited*. It’s designed to help you understand the annuity options available, and search the market to find the annuity you want. Find out more on their website.
*The services provided by HUB Financial Solutions Limited are not free of charge.
The services provided by HUB Financial Solutions Limited are not free of charge. Any services you decide to receive from HUB Financial Solutions Limited are not the responsibility of USS. USS’s role is limited to signposting members to the independent third-party guided annuity service provided by HUB Financial Solutions Limited. USS will not be liable for any loss or damage arising out of or in connection with your use of any of the services provided by HUB Financial Solutions Limited and/or your failure to access the services (including any guidance or recommendation that HUB Financial Solutions Limited may give you). USS is not responsible for the content of HUB Financial Solutions Limited’s website.
If you decide to use HUB Financial Solutions Limited, you can use the details on this website to contact them. You are also free to find your own annuity, and you are under no obligation to use the services provided by HUB Financial Solutions Limited. You can also use a different provider that offers guidance and/or advice on annuity products. If you choose to use HUB Financial Solutions Limited or another provider, you will need to enter into a separate agreement with them.
Before using the HUB Financial Solutions Limited guided annuity service, you should consider whether it is appropriate for your needs.
You can find out how to access guidance and financial advice on our guidance and financial advice page. You can also get financial guidance or advice from your own financial adviser or another appropriately qualified and authorised firm.
USS may withdraw or suspend its signposting of members to the services provided by HUB Financial Solutions Limited at any time without prior warning to members and users of these services.
Find out more about HUB Financial Solutions Limited, the service it provides to USS members and the costs that may be applicable.
Use your pot to provide a flexible retirement income
Flexible retirement income, also known as flexi-access drawdown or just drawdown, is a way of taking money out of your DC pot to live on in later life. Watch the video to find out more.
Getting a drawdown product to meet your needs
MoneyHelper, the free guidance and advice portal set up by the government, has lots of information about finding a drawdown provider.
As a member of USS you have exclusive access to a drawdown product provided by LifeSight. Find out more about LifeSight and see the Important information about LifeSight below.
You would not ordinarily be able to access LifeSight in an individual capacity but can do so as a member of USS. However, any services you decide to receive from LifeSight are not the responsibility of USS. USS’s role is limited to signposting members to the service provided by LifeSight. USS will not be liable for any loss or damage arising out of or in connection with your use of any of the services provided by LifeSight and/or your failure to access the services (including any guidance or recommendation that LifeSight may give you). USS is not responsible for the content of LifeSight’s website.
If you decide to use LifeSight, you can use the details on this website to contact them. You are also free to find a different provider that offers drawdown products, and you are under no obligation to use the services provided by LifeSight. If you choose to use LifeSight or another provider, you will need to enter into a separate agreement with them.
Before choosing LifeSight or any other drawdown provider, you should consider whether it is appropriate for your needs. You can find out how to access guidance and financial advice on our guidance and financial advice page.You can also get financial guidance or advice from your own financial adviser or another appropriately qualified and authorised firm.
USS may withdraw or suspend its signposting of members to the services provided by LifeSight at any time without prior warning to members and users of these services.
To get tailored advice on flexi-access drawdown and other options for using your Investment Builder savings, contact a financial adviser.
Take your Investment Builder pot as cash
You can take all of your Investment Builder pot as a cash payment (full UFPLS) any time from age 55 (rising to 57 in 2028). There is no minimum amount and no charge.
If you don’t want to use your whole Investment Builder pot at once, you could take up to four cash payments each year (partial UFPLS) of at least £2,000 each, and leave the rest invested, where it could continue to grow (the value of your pot could also go down). For each cash payment you take, the first 25% is normally tax-free and the rest counts as taxable income.
This is only available for Investment Builder pots, but you can move any MPAVCs to the Investment Builder at any time before taking any benefits from your MPAVC pot.
If you take a cash payment from a defined contribution (DC) scheme like the Investment Builder, it will trigger the MPAA. Read our UFPLS factsheet to find out more about full and partial UFPLS.
Before taking an UFPLS, you should read our UFPLS factsheet and see the important information at the bottom of this page.
Take your whole pot as tax-free cash
Depending on the size of your pot and the value of your Retirement Income Builder pension, you might be able to take your whole Investment Builder pot as tax-free cash when you retire. Find out more about taking your benefits and savings.
You should consider whether this option is appropriate for your needs. You can find out how to access guidance and financial advice on our guidance and financial advice page. You can also get financial guidance or advice from your own financial adviser or another appropriately qualified and authorised firm.
Leave your pot invested
You don’t have to take your Investment Builder pot at the same time as you start taking your Retirement Income Builder pension. You can leave any Investment Builder and MPAVC pots you have invested until you’re ready to use them. Find out more about taking your benefits and savings.
See the value of your USS benefits
You can see your Investment Builder savings, and what you’ve built up in the Retirement Income Builder, at any time in My USS. To find out the value of any MPAVCs you may have, contact Prudential or log in to the Pru-Retire site.
Also on My USS, you can find a link to the Benefit Illustrator, which will help you estimate the value of your future benefits, and you can review and change your investment choices in the Investment Builder to make sure they’re right for you.
You can transfer your Investment Builder savings at any time to one or more registered pension providers. Different pension providers offer different options with different features, rates of payment, charges and tax implications.
If you’re retiring before your normal pension age, you can transfer your Retirement Income Builder benefits (either with or without your Investment Builder savings), but you’d have to stop paying into your USS pension first.
If you want to transfer your Retirement Income Builder benefits and the value of your savings is £30,000 or more, the law requires you to take independent advice from a regulated financial adviser.
There may be tax implications associated with accessing your pension savings from the Investment Builder. Income from a pension is taxable and the rate at which it is taxed depends on the amount of income you receive from your pension and other sources. Find out more in our pension tax section.
To discuss your options in the Investment Builder or to request a quotation or for any additional information, please contact our Member Service Team on 0333 300 1043 or visit our contact us page. Please note, the Member Service Team can't provide you with advice.
USS is not responsible for any services or products you receive from a third party. USS’s role is limited to signposting members to third parties and, where relevant, transferring your benefits in accordance with the USS Scheme Rules.
If you are considering a material financial decision in relation to your USS benefits, we recommend you seek financial advice.
The information contained on this page is for general guidance only and does not constitute advice. It is not a legal document and does not explain all situations or eventualities. USS is governed by a trust deed and rules and if there is any difference between this publication and the trust deed and rules the latter prevails. Members are advised to check with their employer contact for the latest information regarding the scheme, and any changes that may have occurred to its rules and benefits. For a glossary of our terms please see more information on our important information page.
