USS - later retirement options

Cbmeg

I am seeking counsel from those familiar with the USS scheme

I reach my National Pension age Oct 25.

Using the modeller, were I to retire at this juncture and take only my DB element I will have a 'full' pension with no ERF of c. £31400 and a TFLS of c. £209000

My IB models to c. £21900 at this date.

Am I correct to assume that my IB can be left invested and a later date some of it taken tax free, and if so -  is this up to c. £ 268,000 (ie. £209000 + £59000) ?

In many ways I am not ready to retire ( let my employer off the hook just yet). So, if I were to continue to work, in the first instance for 1 more year until Oct 26, what might my best options be within the boundaries of USS ? My salary is c. £72K.

Deferrring my USS benefits to Oct 26 and, again taking only DB, models as c. £33800 and c. £225300 TFLS.

Thank you for your attention

gwt1965

If you were just taking the DB element the standard TFLS would be 3 x annual pension (£94,200). The TFLS figure you give of £209k is the maximum TFLS ( i.e. 6.667 x annual pension) and will be drawing that extra 3.667 x annual pension from the IB. So, presumably the £21,900 is what’s left in the IB after you’ve taken the maximum TFLS? Yes, you can leave the IB invested and take 25% of it tax-free at some point, up to the £268k limit. 

Deferring your retirement a year doesn’t make much difference, except you build up more benefits. And you could add extra contributions if you wanted. But you have the same options as you would if you retired in October 2025.