USS pension scheme - what is the underlying fund they invest in?

Doctor_Who

I think most providers now offer more than one  lifestyling option, so could be  one with a view to drawing down, rather than taking an annuity.

I can only see two USS lifestyling options and the ability to set a target retirement age. There may be more options, but I don't use 'Do It For Me' so lifestyling is not an issue for me.

• The USS Default Lifestyle Option
  In this option we gradually move your investments over time through different blends of Growth, Moderate Growth, Cautious Growth and Liquidity, which are generally less susceptible to market volatility. This is called lifestyling and begins 10 years from the age you want to take your savings. We’ll automatically invest here if you don’t make a choice.

• The USS Ethical Lifestyle Option
  In this option we gradually move your investments in the same way as the above, but invests in funds that meet our ethical guidelines (there's more information in our ethical guidelines).

https://www.uss.co.uk/for-members/your-pension-explained/investment-builder/choosing-your-investments

Albermarle

They both look like ones aimed at taking an annuity. As we know from many other posts, this can be very bad for anyone actually wanting to drawdown the pot, so should be avoided in that case.

Doctor_Who

Albermarle said:

They both look like ones aimed at taking an annuity. As we know from many other posts, this can be very bad for anyone actually wanting to drawdown the pot, so should be avoided in that case.

I am surprised at the lifestyling options offered by USS given that every member builds up benefits in the DB section of the pension, which may well cover a basic level of indexed linked income. Hence I can see many USS members wanting to do drawdown with their DC pot and not buy an annuity.

Southend_2

Doctor_Who said:

Albermarle said:

They both look like ones aimed at taking an annuity. As we know from many other posts, this can be very bad for anyone actually wanting to drawdown the pot, so should be avoided in that case.

I am surprised at the lifestyling options offered by USS given that every member builds up benefits in the DB section of the pension, which may well cover a basic level of indexed linked income. Hence I can see many USS members wanting to do drawdown with their DC pot and not buy an annuity.

I think a lot of members would want to take the whole IB pot as cash at the time they commence the DB pension, as the rules allow for more than 25% of it (possibly 100% depending on the figures) to be taken tax free. 

Doctor_Who

Southend_2 said:

Doctor_Who said:

Albermarle said:

They both look like ones aimed at taking an annuity. As we know from many other posts, this can be very bad for anyone actually wanting to drawdown the pot, so should be avoided in that case.

I am surprised at the lifestyling options offered by USS given that every member builds up benefits in the DB section of the pension, which may well cover a basic level of indexed linked income. Hence I can see many USS members wanting to do drawdown with their DC pot and not buy an annuity.

I think a lot of members would want to take the whole IB pot as cash at the time they commence the DB pension, as the rules allow for more than 25% of it (possibly 100% depending on the figures) to be taken tax free. 

Maybe that is why the USS lifestyling 'de-risks' from ~10 years before TRA. I still find it odd that they don't give options as some people will presumably want drawdown. As Albermarle said, we often see posts on here where people were automatically lifestyled towards an annuity when they planned to drawdown their DC pot. My IB pot is relatively small (most of my pension is DB prior to 2016) and I hope to take it all as TFC!