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USS - General discussion
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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.
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.1 -
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%)2 -
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.
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.0 -
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.
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.1 -
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!0 -
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.0
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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.0
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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.1
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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.
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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.0
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