When should I take my USS pension?

RSTime

I joined the USS scheme in 1990 and left in 2014 and am a deferred member. I am 59 and not sure when the best time is to start taking my pension. I was speaking to a colleague recently who thought there was a penalty if you took the pension before the age of 60, but am unaware of this? I know that there will be an actuarial reduction if I take before I am 65 (my retirement age on my last contract). I have now retired but have cash reserves and do not need to take the pension immediately, I was planning to draw on the pension next year when I am 60. I am however now a little nervous as I am not sure what to do with a large lump sum (>£100k) given the situation with the markets. Am I better parking this pension and let it grow (index linked) and taking it later rather than sooner (and using my cash reserves)?

Any comments on the above?

Thanks in advance.

2nd_time_buyer

The best bet in the first instance is to use the modeller on the USS website:

https://www.ussbenefitillustrator.co.uk/

Also the early retirement factors are on page 20 of...

https://www.uss.co.uk/-/media/project/ussmainsite/files/financial-advisers/mfuss-for-ifa.pdf

That will give you a reasonable idea. The general consensus is that the actuarial reductions are fairly generous so it is not necessarily a bad thing to take it early.

Once you have a fair-er idea. Contact USS who will provide a (free) formal calculation.

MPLMPL

Re actuarial reduction, I don't think the benefit illustrator is sophisticated enough to factor in the differing NPA for your service. I would confirm with USS, but looking at the following, deductions may be less than you think, i.e. some of your service (1990-1995 has NPA 60, some 63.5, some 65). Taken from the document that 2nd_time_buyer linked to.