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USS - General discussion

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  • PJM_62
    PJM_62 Posts: 201 Forumite
    Part of the Furniture 100 Posts Name Dropper
    ussdave said:
    Ah, so no salary sacrifice?

    Probably still worth it for the effective rate of 15% tax on withdrawal.  Also, as you say, a tax wrapper.  And the 0 fees.
    I guess if I live off savings , for as long as I'm still being paid each month , and use the pay to do SS AVCs (within limits), then I could top the savings back up with the TFLS.

    The effective rate of 15% you mention, is that what 20% income tax and the 25% TF combine to give ? 

    So , if the AVCs were 10k in total.  What would be the £ benefit ?

    Sorry my maths isnt great atm.  :/
  • Barralad77
    Barralad77 Posts: 76 Forumite
    10 Posts Name Dropper
    Yes. Take £10,000 out, get £2,500 tax free and pay 20% tax on the remaining £7,500 (£1,500).

    £10,000 - £1,500 = £8,500 (or 85%)

  • ussdave
    ussdave Posts: 372 Forumite
    Fifth Anniversary 100 Posts Name Dropper
    PJM_62 said:
    ussdave said:
    Ah, so no salary sacrifice?

    Probably still worth it for the effective rate of 15% tax on withdrawal.  Also, as you say, a tax wrapper.  And the 0 fees.
    I guess if I live off savings , for as long as I'm still being paid each month , and use the pay to do SS AVCs (within limits), then I could top the savings back up with the TFLS.

    The effective rate of 15% you mention, is that what 20% income tax and the 25% TF combine to give ? 

    So , if the AVCs were 10k in total.  What would be the £ benefit ?

    Sorry my maths isnt great atm.  :/
    Have you already maxed out your IB TFLS?  If not then you'd be even better off.
  • PJM_62
    PJM_62 Posts: 201 Forumite
    Part of the Furniture 100 Posts Name Dropper
    ussdave said:
    PJM_62 said:
    ussdave said:
    Ah, so no salary sacrifice?

    Probably still worth it for the effective rate of 15% tax on withdrawal.  Also, as you say, a tax wrapper.  And the 0 fees.
    I guess if I live off savings , for as long as I'm still being paid each month , and use the pay to do SS AVCs (within limits), then I could top the savings back up with the TFLS.

    The effective rate of 15% you mention, is that what 20% income tax and the 25% TF combine to give ? 

    So , if the AVCs were 10k in total.  What would be the £ benefit ?

    Sorry my maths isnt great atm.  :/
    Have you already maxed out your IB TFLS?  If not then you'd be even better off.
    Yes when I take the remaining 20% of pension (currently flexi retired taking 80%) , and I take the max TFLS (3.66 x P), there will still be some IB left for UFPLS-ing.
  • I am retiring at the end of July.  

    I have received my Provisional Retirement Quote and sent in my Notification of Retirement form. I just looked at the USS Benefits Calculator and the projection is down by about 35% from the quote, which was quite accurate based on previous readings of the calculator over the past year.  This is a surprise! To put it mildly.  

    Does anyone know what might explain this?  What a palaver! 
  • swindiff
    swindiff Posts: 976 Forumite
    Tenth Anniversary 500 Posts Name Dropper Newshound!
    Wow that's a huge margin of error.  At least it is in the right direction, 35% less on the modeler is like thinking you are getting £13k a year and ending up with £20k.  I will be very happy if that is the case when I come to retire lol.
  • The latest projection is down from the April quote, and yes it is that kind of difference.  I called USS and they didn't know why, but said there are problems with the calculator, but couldn't confirm this was the reason.  So for example, my calculation now shows less than what my statement said for last year. 
  • Barralad77
    Barralad77 Posts: 76 Forumite
    10 Posts Name Dropper
    From my experience it seems that at certain times of year the quote beats what the modeller shows. At other times, the modeller displays a higher value than the quote you get. And at other times of the year they more or less match. I’ve come to the conclusion - born of experience - that the modeller should be treated, at best, with extreme caution and, at worst, ignored completely. Go with the quote if it’s a recent one.
  • swindiff
    swindiff Posts: 976 Forumite
    Tenth Anniversary 500 Posts Name Dropper Newshound!
    edited 18 July at 5:33PM
    I am sure you will have all received this email?

    According to our records, you used our Benefit Calculator between 26 April and 27 May this year.


    We've identified that during this time the calculator was over-estimating the value of some members' Retirement Income Builder benefits, therefore you should not use the estimates provided for financial planning.


    The reason this has happened, is that when we updated your record in April to add in the last year of pension built up, the Benefit Calculator used a higher amount for this year in error.


    This problem has now been resolved, and you can log in to myuss and navigate to the "Your Pension" section to rerun your illustrative projections via the Benefit Calculator.


    We apologise for any inconvenience this may have caused.


    The USS team.

  • 13FL
    13FL Posts: 8 Forumite
    Name Dropper First Post
    Yes, also received that email.  Not sure what to make of it as I had a provisional quote from USS during that window.  Looking back at my spreadsheets the numbers (AP and maximum TFLS) using my quote were comparable with the numbers just using the modeller. Confused.  Thing the lines to USS on Monday will be busy.
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