USS - Increase lump sum or not?

PJM_62

My plans for starting FR later in the year with a flex of 80% of benefits have been cancelled.
Instead .. forms have gone in, to just crack on, and get it in place before April 1st
First pension payday will be 21 Apr. With any luck, I'll get the £241 uplift and annual April increase included in that.

PJM_62

PJM_62 said:

My plans for starting FR later in the year with a flex of 80% of benefits have been cancelled.
Instead .. forms have gone in, to just crack on, and get it in place before April 1st
First pension payday will be 21 Apr. With any luck, I'll get the £241 uplift and annual April increase included in that.

I'll be asking for standard pension + MAX TFLS option that we've discussed on here.
(3 x P) + (3.66 x P, taken from IB)
Fingers crossed that it goes as planned.

ussdave

Makes total sense.  I hope not too many people end up caught out by this.

For myself it's well over a decade away and could easily change again.  I'm just shifting my assumptions to include more bridging years rather than the more simple option of leaving everything in my IB and taking it all at once with the associated ERFs.

PJM_62

Just read this on USS website.  It suggests to me that if I have a Flexible Retirement (first flex) date of 31 March , I will in fact get the 215 pension uplift + 645 lump sum.
Is that how others read it?
Its just that USS told me on the phone that my FR date of 31 March (to avoid ERF hike on 1st Apr) , would mean i just get the 241 uplift.


​I’ve taken flexi-retirement. Would I get the uplift? If so, on what basis? What about the lump sum?

If you had any period of active membership from 1 April 2022 to 31 March 2024, took flexible retirement before 1 April 2024, and do not fully retire before 1 April 2024, you’ll receive a pension uplift of £215, plus £645 lump sum. This applies if you remain in active membership beyond 31 March 2024, and if you left active membership but did not fully retire before 1 April 2024.

If you had any period of active membership from 1 April 2022 to 31 March 2024, took flexible retirement before 1 April 2024, and fully retire before 1 April 2024, then you’ll receive a pension uplift of £241 per annum.  

Simes122

PJM_62 said:

Just read this on USS website.  It suggests to me that if I have a Flexible Retirement (first flex) date of 31 March , I will in fact get the 215 pension uplift + 645 lump sum.
Is that how others read it?
Its just that USS told me on the phone that my FR date of 31 March (to avoid ERF hike on 1st Apr) , would mean i just get the 241 uplift.


​I’ve taken flexi-retirement. Would I get the uplift? If so, on what basis? What about the lump sum?

If you had any period of active membership from 1 April 2022 to 31 March 2024, took flexible retirement before 1 April 2024, and do not fully retire before 1 April 2024, you’ll receive a pension uplift of £215, plus £645 lump sum. This applies if you remain in active membership beyond 31 March 2024, and if you left active membership but did not fully retire before 1 April 2024.

If you had any period of active membership from 1 April 2022 to 31 March 2024, took flexible retirement before 1 April 2024, and fully retire before 1 April 2024, then you’ll receive a pension uplift of £241 per annum.  

It looks like that PJM.  However, your 20% would presumably be subject to EFRs at the newer (worse) factor.  Whether that's material (however long you live at a lower pension x ERF, vs £645) is what you'd need to test against I guess!

Simes122

PJM_62 said:

PJM_62 said:

My plans for starting FR later in the year with a flex of 80% of benefits have been cancelled.
Instead .. forms have gone in, to just crack on, and get it in place before April 1st
First pension payday will be 21 Apr. With any luck, I'll get the £241 uplift and annual April increase included in that.

I'll be asking for standard pension + MAX TFLS option that we've discussed on here.
(3 x P) + (3.66 x P, taken from IB)
Fingers crossed that it goes as planned.

Before you commit to this option (and it'll depend on your personal figures as to whether the approach I'll outline makes sense), test in the modeller against the following.

Taking both pots together.

But use the option to preserve 100% of your IB.

This gets you an improved TFLS from your RB from taking "both sides at the same time", while leaving your IB untouched.   And the untouched IB, still has access to 25% TFLS.    Using my figures, this was the optimal way for me to get the most overall out Tax Free, while preserving my entire IB for later.  

bluebirdy

Simes122 said:

PJM_62 said:

PJM_62 said:

My plans for starting FR later in the year with a flex of 80% of benefits have been cancelled.
Instead .. forms have gone in, to just crack on, and get it in place before April 1st
First pension payday will be 21 Apr. With any luck, I'll get the £241 uplift and annual April increase included in that.

I'll be asking for standard pension + MAX TFLS option that we've discussed on here.
(3 x P) + (3.66 x P, taken from IB)
Fingers crossed that it goes as planned.

Before you commit to this option (and it'll depend on your personal figures as to whether the approach I'll outline makes sense), test in the modeller against the following.

Taking both pots together.

But use the option to preserve 100% of your IB.

This gets you an improved TFLS from your RB from taking "both sides at the same time", while leaving your IB untouched.   And the untouched IB, still has access to 25% TFLS.    Using my figures, this was the optimal way for me to get the most overall out Tax Free, while preserving my entire IB for later.  

Could someone explain to me (and I can ask in a separate thread if you prefer?) just HOW and WHY this works?

I just do not get how you can increase the IB bit of TFLS but keep most of it invested!

It seems like I can basically take out more money than I actually have on the modeller like this.

And I also don’t understand the status of any IB left invested. Only just getting head round crystallised/uncrystallised. If doing the above max TFLS thing but leaving some IB invested, is it now crystallised? If not, why not?!

Possibly stupid questions. Small brain and Friday night…

PJM_62

Simes122 said:

PJM_62 said:

PJM_62 said:

My plans for starting FR later in the year with a flex of 80% of benefits have been cancelled.
Instead .. forms have gone in, to just crack on, and get it in place before April 1st
First pension payday will be 21 Apr. With any luck, I'll get the £241 uplift and annual April increase included in that.

I'll be asking for standard pension + MAX TFLS option that we've discussed on here.
(3 x P) + (3.66 x P, taken from IB)
Fingers crossed that it goes as planned.

Before you commit to this option (and it'll depend on your personal figures as to whether the approach I'll outline makes sense), test in the modeller against the following.

Taking both pots together.

But use the option to preserve 100% of your IB.

This gets you an improved TFLS from your RB from taking "both sides at the same time", while leaving your IB untouched.   And the untouched IB, still has access to 25% TFLS.    Using my figures, this was the optimal way for me to get the most overall out Tax Free, while preserving my entire IB for later.  

Maybe it's because it's Friday, but that has confuddled me good and proper 😀

"This gets you an improved TFLS from your RB from taking "both sides at the same time", while leaving your IB untouched"

That seems contradictory. ?

PJM_62

@bluebirdy
anything left in IB , after using some as part of the TFLS, has to be taken as UFPLS withdrawals (25% of each one being tax free).
Or you could transfer it all to a SIPP and do flexi-drawdown from there.

swindiff

Assuming you are happy with 4 withdraws a year, is there any advantage of transferring to a SIPP?  Unless it is cash there will be charges in a SIPP where there aren't in the USS IB as long as it's been funded from salary.