lump sum taking pension at 55

[Alaric]

The USS did give me some actuarial reduction factors a while ago (it took me an hour on the phone to extract this info).

For pensions preserved on leaving service, presumably they apply the factor to the current amount? In other words it's revalued been from leaving to now, but assumes zero revaluation thereafter.

I can partly understand a reluctance to reveal reduction factors, as they should in theory and perhaps in practice change with interest rates and expected future revaluation ( RPI/CPI increases up to retirement).

[melonfool]

Hi Melonfool, would you be prepared to reveal a bit more about your transfer out from USS?

I would be interested in when you did this and what multiple of annual pension you got.

Thanks

I've got no problem sharing but it's not really relevant. I was only in it nine months so there was such a small value it meant nothing, something like £10k. When I went in I intended to transfer out when I left, so I never even looked at pension multiples.

I did it partly due to the de mininimis nature of the value and also concerns on the funding.

Mel

[DrBunsenHoneydew]

The USS did give me some actuarial reduction factors a while ago (it took me an hour on the phone to extract this info).

For pensions preserved on leaving service, presumably they apply the factor to the current amount? In other words it's revalued been from leaving to now, but assumes zero revaluation thereafter.

I can partly understand a reluctance to reveal reduction factors, as they should in theory and perhaps in practice change with interest rates and expected future revaluation ( RPI/CPI increases up to retirement).

Yes the reduction is from what you've accumulated so far (not from what you might have achieved by staying a contributing member).
For the 10-year reduction factor you must be sure you are using the correct starting normal pension age for the section of the particular scheme you are in. The factors will be different for reduction from 67 to 57 than from 65 to 55 or 60 to 50.
The tables of reduction factors certainly change periodically - essential to check you are using the latest edition.
I'm slightly surprised they are allowed to use different tables for male and female in this day and age!

[Dondraper]

1. Call your pension administrator and ask them to provide written information and illustrations. They will explain how TFC and pension is calculated and re-valued and how it escalates in retirement.

2. Do you have a financial advisor? Why are you asking randoms on a message board what their best guess is after they’ve done a bit of googling? This is your money. If you don’t want to put your hand in your pocket and pay an advisor at least ask the scheme yourself. Chase them on the telephone if you need to.

[melonfool]

One most definitely does not need a financial advisor to discuss the USS pension scheme. That would be a total wasted of money for the question being asked.

It's not our 'best guess from Googling', many people here have very detailed pension knowledge and some of us have even been in the same scheme.

The op needs to speak to the scheme again and insist on the answer.

Of course, if he wants to consider transferring out he'll need a financial advisor but that's another issue.

Mel