Your USS pension in times of uncertainty
The news has been dominated by the conflicts around the globe and the effect they’re having on inflation and living costs. Most of us are seeing the difference when we fill up at the petrol pump or when the bills land on the doormat.
Stock markets worldwide have also been in a state of flux, so it’s understandable if you start to worry about the security of your pension.
But the pension you’re building in the Retirement Income Builder remains secure. Whilst most pensions in the UK are defined contribution (DC) schemes, where retirement income is based, largely, on how your investments have performed, USS is different.
We are a hybrid scheme. Every member pays into the defined benefit (DB) part of USS, the Retirement Income Builder. Here you build a block of benefits each year based upon your salary up to a salary threshold which is £74,208 (for 2026/2027), and these are guaranteed at retirement. Open DB schemes are becoming increasingly rare.
According to Pensions Expert magazine, just 4% of private sector DB schemes are still accepting new members, compared to 43% two decades ago.
Not only that, but the pension you’re building in the Retirement Income Builder also provides a level of inflation protection. Each year, we increase your pension in line with official pensions, which track the Consumer Prices Index (CPI). If you have built up benefits before October 2011, we match any CPI inflation increase in full, and for benefits built up after this date, they are increased up to a cap. The first 5% matches CPI inflation, and half of the excess above 5% is matched to a maximum of 10%.
If you have savings in the Investment Builder — the defined contribution (DC) part of USS — the impact of the market volatility will vary depending on the investment choices you’ve made. However, we manage your funds with long-terms returns in mind, so short-term ups and downs are a normal part of how your pension grows.
We continue to monitor the markets closely, and our in-house team of experts constantly responds to developments to make sure USS remains in a strong position to deliver pensions to our members today and for the long term.
So, whilst it is normal to worry about your finances in times of uncertainty, at USS we are committed to ensuring that your long-term future and pension is one less thing to worry about.
Published: 19 May 2026