USS DB Pension - claim early while working?

katejo

https://forums.moneysavingexpert.com/discussion/comment/81887936#Comment_81887936

My DB pension is SAUL and I also have different NRA's for different periods. Mine started in 1990 and all the funds added between then and 2012 became available without reduction from 60. Other parts of it are available in full at 64, 65 and 66.

OldishWench

Wow, thanks everyone. Lots to think about here. I have only one pot I think, just the DB one.

I'm going to try out the calculator tonight, then maybe get a quote to take the funds as soon as I hit 63.5 in a month or so, and perhaps one for taking it at 65 to see what, if anything, I lose by taking it now.

Many thanks for all the responses, you're all amazing!

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/81888321#Comment_81888321

A more normal reduction for a DB pension is around 4.5% per year taken early.

So it seems to be a significantly less reduction than that.

DRS1

People who know more about USS and its admin than I do may have a view on this but if you are thinking of starting your pension in a months time you may have left it a bit late. Get on to them asap to start the ball rolling.

guymo

https://forums.moneysavingexpert.com/discussion/comment/81888363#Comment_81888363

For what it's worth the USS early retirement factors are available here: https://www.uss.co.uk/for-members/calculate-your-benefits/factors-used-by-uss

MarlowMallard

A point to note: if you are still working in a USS scheme, you can't take any USS DB pension unless you flexi-retire by reducing hours. You can however reduce hours by just 20% and take 80% of the pension. (You can't take the final 20% of pension until you fully retire from USS service). As others have noted, if you are over 63.5 there is no actuarial reduction on your pre-Oct-2011 benefits, so the overall reduction is very small.

If you're working in something else now and a deferred USS member who left USS in the mid-2010s, yes it is beneficial to take the whole DB at age 63.5, since you only get the actuarial reduction on the last few years of service, so you'd need to live well past 100 to gain by deferring to 65.

katejo

https://forums.moneysavingexpert.com/discussion/comment/81892011#Comment_81892011

I am on SAUL not USS and that doesn't allow Flexi retirement at all. I am about to stop and take mine at 63. The amount I lose by stopping before 66 is relatively small (only part of pension earned post 2016). If I waited another year, there would be a deduction for going before 67 but that doesn't affect me if I stop before then.

OldishWench

https://forums.moneysavingexpert.com/discussion/comment/81892011#Comment_81892011

That's really interesting. I have moved on to a private sector company and plan to work for a while yet. Claiming now and paying off my mortgage balance early would allow me to invest more into my SIPP.

I just thought it all sounded to good to be true, but from what you say, it really is true.

I'm waiting for my quote to come, I assume it's in the postal system. I'll post here when I make the decision. Thanks very much.