For employers: For investment documents relating to the SIP consultation visit our investment documents page.
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. They work alongside your Retirement Income Builder benefits, the defined benefit (DB) part. You can take your DC savings in a variety of ways, giving you the flexibility to use them in a way that suits you. And you don’t have to wait until you retire to do so.
Before making any decisions about what to do with your pension savings, we recommend that you seek guidance and/or take financial advice. You can also register for our Understanding DC (the Investment Builder) webinar to find out more.
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 onwards (rising to 57 in 2028 for certain members), 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 defined contribution pension savings, like those in the Investment Builder
You could:
take your savings as tax-free cash (subject to HMRC limits).
leave them invested and withdraw up to four cash payments each year without having to retire.
move your Investment Builder savings to a drawdown product, where you can take money from it as and when you need, while it’s still invested.
use it to provide you with a guaranteed pension income by purchasing an annuity. You can do this alongside taking your pension from the Retirement Income Builder (defined benefit), to boost the income you’ll get when you retire.
You can use the Benefit Calculator in My USS to explore your options with your DC savings and get an estimate of what they could give you in tax-free cash or annual income. Here you can also get an estimate of what your defined benefit pension, the Retirement Income Builder will give you when you retire, then you can consider how both your DB pension and DC savings might work together to suit your future plans.
Read more about each option below.
Take your Investment Builder pot as cash
You can take all of your Investment Builder pot as a cash payment (known as an UFPLS) any time from age 55 onwards (rising to 57 in 2028 for certain members). 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 Money Purchase Annual Allowance. Read our UFPLS factsheet to find out more about full and partial UFPLS.
Taking an UFPLS
First we recommend you seek guidance or financial advice before making any decisions, to make sure UFPLS is right for you.
Read our UFPLS factsheet before taking an UFPLS and see the important information at the bottom of this page.
Use your pot to buy a guaranteed income for life – known as an annuity – 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 with flexi-access drawdown
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 our 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 whole pot as tax-free cash
You can usually take up to 25% of the overall value of your benefits and savings as tax-free cash at retirement. And if you take both your Retirement Income Builder benefits and Investment Builder savings together, you can usually take all of your Investment Builder pot as tax-free cash (depending on the size of your pot). If your Investment Builder savings make up more than up 25% of the overall value of your benefits at retirement, you can still take some as tax-free cash and the rest can be taken using one of the other options on this page.
You don’t have to take your Investment Builder savings at the same time as your Retirement Income Builder benefits, and if you take them separately using one of the other options on this page, then up to 25% of your Investment Builder savings can still usually be taken as tax-free cash.
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. Your Investment Builder savings will continue to be managed by our team of experts, if we’re managing them for you.
If you leave your pot invested, make sure you:
review and update your investment choices in the Investment Builder to make sure they’re right for you
update your Target Retirement Age so we know when to move your investments, if we’re managing them for your, and when to get in touch about your options.
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.
You can use the Benefit Calculator in My USS to explore your options with your DC savings and get an estimate of what they could give you in tax-free cash or annual income. Here you can also get an estimate of what your defined benefit (DB) pension, the Retirement Income Builder will give you when you retire, then you can consider how both your DB pension and DC savings might work together to suit your future plans.
Important information
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.
There may be tax implications associated with accessing your pension savings from the Investment Builder, such as the Money Purchase Annual Allowance.
Your pension is taxable just like a regular income. 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.
Subject to certain exemptions, if you apply to access or transfer your Investment Builder and/or MPAVC savings, or if you contact us about an application, we’re required by law to direct you to Pension Wise guidance. This is called the ‘Stronger Nudge’ and it’s the law for schemes like USS, that provide a defined contribution part to members.
Pension Wise is a government service from MoneyHelper that offers free, impartial pensions guidance about your defined contribution options.
We can’t proceed with your application, until you tell us that you’ve either received Pension Wise guidance or have opted out of receiving it by providing an opt out notification to us.
For more information and instructions on what to do next, see the Stronger Nudge notice.
To discuss your options in the Investment Builder, request a quote 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.
We're 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 Scheme Rules.
If you're 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.