Why you can rely on your USS pension even in times of uncertainty
Global instability, uncertain levels of inflation, and financial market downturns can be worrying trends, but unlike many UK pensions, the benefits you’re building in the Retirement Income Builder are guaranteed.
Most UK pensions are defined contribution (DC) schemes, where retirement income depends, largely, on investment returns. But USS is a hybrid scheme, so you — like all our members have defined benefits (DB), which are secure and protected by law.
Here’s a summary of how your USS pension works
1. You build guaranteed benefits through the Retirement Income Builder
Each year, you build up a guaranteed pension based on your salary (up to the salary threshold of £74,208 for 2026/2027). The income this promises is guaranteed when you retire. Open defined benefit (DB) schemes are becoming increasingly rare, with only 4% of private sector DB schemes still open to new members.
2. Your USS pension is protected against inflation
Your Retirement Income Builder pension increases each year in line with official pension increases, which are based upon Consumer Prices Index (CPI) inflation. The benefits you build up are revalued in line with CPI inflation up to 5% and increase by a further half a per cent beyond that, up to a cap of 10%.
3. Investment Builder savings are managed for the long-term
If you have savings in the Investment Builder (the DC part of USS) they are invested to grow over time and can go up or down with markets. We take a long-term approach to investing, so short-term ups and downs are a normal part of how your pension grows.
Feeling a little bit anxious about your finances, especially at times like these, is perfectly normal, but your USS pension is in a good position to navigate this instability.
Find out more about how your USS pension works.
Published: 19 May 2026