Whether retirement feels a long way off or is starting to feel much closer, it’s useful to understand how your pension works and what it offers.
Take our quiz to test your knowledge and find out a few useful things about your pension.
Get each question right and watch your pension pot grow!
1. Is the Retirement Income Builder a defined benefit (DB) or defined contribution (DC) scheme?
Correct.
The Retirement Income Builder is a defined benefit (DB) pension. It’s based on how much you earn and how long you've worked for your employer. You build a block of benefits each year, to provide a guaranteed annual income when you retire along with a lump sum.
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2. Is your pension protected against inflation?
Correct.
Every year we look at official pensions, which are linked to the Consumer Prices Index (CPI). CPI is a measure of inflation based on the price of an average basket of shopping. When CPI increases, we increase your Retirement Income Builder benefits (subject to certain caps). When there’s negative inflation and CPI does not go up, we do not reduce your benefits; they just stay the same for that year. This provides a level of inflation protection for your benefits.
The annual increase for benefits built up from 1 October 2011 is capped at 10% (the first 5% matches the increase in official pensions, with half of the excess above 5% matched to a maximum of 10%).
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3. Do you get life cover with your pension?
Correct.
With USS, you get life cover that could include a lump sum for your beneficiaries of three times your annual salary, a pension for your spouse or civil partner for life, or a dependant’s pension if you are not married or in a civil partnership. In addition, it can provide a pension for any eligible children.
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4. How long do you need to pay in to USS to get ill health cover?
Correct.
If you have to stop working because of ill health, as long as you’ve been building your pension with us for at least two years and meet the eligibility criteria under the Scheme Rules, you could retire early with full USS benefits.
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5. How much guaranteed benefits do you build each year in the Retirement Income Builder?
Correct.
You build 1/75 of your salary up to the salary threshold each year, as a guaranteed benefit. So, for example if you have a salary of £55,000, you’ll be building up £733 in annual pension income each year, and you’ll also receive three times that amount as a one-off cash lump sum at retirement.
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6. When is the earliest you can start taking your pension?
Correct.
Currently the earliest you can start taking your benefits from the Retirement Income Builder and savings from the Investment Builder is age 55 onwards (rising to 57 from 2028), unless you’re retiring because of ill health.
Six right!
7. Is everyone part of the Investment Builder?
Correct.
You’re only part of the Investment Builder, the defined contribution (DC) part of USS, if you have made or are making additional contributions, have transferred in or earn, or have earned over the salary threshold at some point (currently £74,208).
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8. Do you have choices of where we invest your money in the Investment Builder?
Correct.
You can let our team manage your investments for you with the Do It For Me option, or you can make investment choices yourself with the Let Me Do It option. Both options give you the choice to invest ethically and in line with your beliefs and savings goals.
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9. How many ways can you take your Investment Builder savings?
Correct.
There are four different ways you can take your Investment Builder savings:
You can also choose to leave your savings invested in the Investment Builder; you do not have to take them when you retire.
Another one right!
10. The value of your Investment Builder is based on the number of years you’ve been at USS
Correct.
The value of your Investment Builder pot depends on the amount you’ve contributed and how your investments perform over the years. Remember, investments can go down as well as up.
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11. Do I have to take my benefits in the Retirement Income Builder at the same time as any savings I have in the Investment Builder?
Correct.
You do not have to take the pension you have built in the Retirement Income Builder with your Investment Builder savings. The Investment Builder, the defined contribution (DC) part of USS, is a flexible savings pot that you can take from 55 (rising to 57 from 2028) and you do not need to retire to take them.
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12. Can I make additional contributions?
Correct.
You can choose to make additional contributions anytime, you might decide you’d like to save more in to USS, in the form of a one-off payment, a regular monthly contribution or even transfer any pensions you have elsewhere. Any further contributions you make in to USS will go into the Investment Builder, the defined contribution (DC) part of USS.
You can use the Benefit Calculator to see the impact saving more into your pension might have in the future.
Fantastic! You've completed the quiz.