Additional pension contributions or savings?

atw_uss

Thanks @ussdave, this does sound the most sensible (and straightforward) route.

cloud_dog

ussdave said:

You can take your IB early but to do so you have to give up the linking of you DC and dB benefits, so your TFLS will be negatively impacted.

If you wanted to go this route it would be better to transfer your IB pot out now to a separate SIPP and massively up your contributions to get your IB back to a decent level.  Something like this was originally my plan but after doing more reading I'm now just putting everything into my IB pot...at least until I've had the time to properly sit down and work out the figures.  On the face of it, this seems as optimal as any alternative strategy.

Different scheme but, this is what I am doing.

I am sacrificing considerable monies in to my DB scheme AVC pot.  Am using liquidated ISA investments to supplement the reduced salary income.  Periodically I undertake a partial transfer out from the AVC in to my SIPP.  Rinse and repeat.

Under the USS IB scheme rules are you permitted to undertake a partial transfer out whilst remaining an active member?

ussdave

You can transfer your IB pot out but must do so in full.  Afterwards you can continue to contribute to it.

atw_uss

cloud_dog said:

Different scheme but, this is what I am doing.

I am sacrificing considerable monies in to my DB scheme AVC pot.  Am using liquidated ISA investments to supplement the reduced salary income.  Periodically I undertake a partial transfer out from the AVC in to my SIPP.  Rinse and repeat.

Under the USS IB scheme rules are you permitted to undertake a partial transfer out whilst remaining an active member?

Thanks, cloud_dog - interesting point and one which makes me realise I need to keep reading (and phoning USS with questions). 

I suspect I can transfer out the DC while remaining a member but doubt I can do partial transfers. The management rates are very good in USS, hence the drive towards consolidating in one low fee pot. I have a stakeholder with just over £20K in it that I am considering transferring in (management fees of 0.9 compared to 0.3 in USS). If I want to bridge a gap in taking the pension, it might make sense to transfer this to a SIPP and pay more in during the interim but I would lose the NI relief. 

Tricky, and that’s before I start to consider the benefits and risks of flexi-retirement (which is looking increasingly attractive now my OH has retired!).

ussdave

atw_uss said:

cloud_dog said:

Different scheme but, this is what I am doing.

I am sacrificing considerable monies in to my DB scheme AVC pot.  Am using liquidated ISA investments to supplement the reduced salary income.  Periodically I undertake a partial transfer out from the AVC in to my SIPP.  Rinse and repeat.

Under the USS IB scheme rules are you permitted to undertake a partial transfer out whilst remaining an active member?

Thanks, cloud_dog - interesting point and one which makes me realise I need to keep reading (and phoning USS with questions). 

I suspect I can transfer out the DC while remaining a member but doubt I can do partial transfers. The management rates are very good in USS, hence the drive towards consolidating in one low fee pot. I have a stakeholder with just over £20K in it that I am considering transferring in (management fees of 0.9 compared to 0.3 in USS). If I want to bridge a gap in taking the pension, it might make sense to transfer this to a SIPP and pay more in during the interim but I would lose the NI relief. 

Tricky, and that’s before I start to consider the benefits and risks of flexi-retirement (which is looking increasingly attractive now my OH has retired!).

Is that 0.3 in USS including the difference in fees for money transferred in vs paid in via salary?  

As per the above, you can't do partial transfers with USS - but you can continue contributing after transferring.  

atw_uss

I don’t think there is a fee for transferring in the stakeholder, but there is a 0.3% annual management fee (depending on where it’s invested)). I’m currently paying 0.9% so probably advisable to consider moving it. I can’t rule out having missed part of the fee structure though!

ussdave

Sorry, I wasn't very clear above.  I was referring to the annual management fee as the 'discount' we get with USS isn't applied to money transferred in (only to money we pay in via salary).  However, it sounds like you've already taken that into account.

atw_uss

Yes, this is how I understand it. The charges/fees would appear to be much lower, although there is definitely a lot less investment choice in the USS (I’m no expert though, so this could be better for me). Just whether all eggs in one basket better of or not - impossible question, I imagine.