New USS modeller

WillC999

Right… but all I want to know is (effectively) what is the pension worth when they start paying it me when I’m 65? If the modeller says 14k then I take this to mean 14k in today’s terms. So when it starts paying out at (say) 16k this is worth the same as 14k now. 

If someone could just confirm this… the lack of clarity is so fundamental to planning for retirement!

2nd_time_buyer

WillC999 said:

Right… but all I want to know is (effectively) what is the pension worth when they start paying it me when I’m 65? If the modeller says 14k then I take this to mean 14k in today’s terms. So when it starts paying out at (say) 16k this is worth the same as 14k now. 

If someone could just confirm this… the lack of clarity is so fundamental to planning for retirement!

Yes, that is the case. Assuming inflation stays consistently below 5% and they don't change the inflation linking until then.

If they do change the inflation linking, then in all probability it will only apply to future contributions. 

SilverSilverSilver

So by changing the Early Retirement Factors they way they have seems to assume that life expectancy is to age 90 (I believe). Isn't that contrary to what has happened in reality. My understanding is that the actual average life expectancy has fallen. So, I can't understand the belief that someone retiring at 55 will on average live to 90. 

Please correct my assessment if I have misinterpreted the change in these factors.

Please help me understand the underlying logic to the significant shift in theses factors which seem to also now apply to all benefits built up including historic benefits, which too is out of kilter with previous changes.