Prudential
Autumn - A good time to review your pension
Receiving your Universities Superannuation Scheme (USS) service statement can be a perfect time to help you make sure your pension is on track to deliver what you need. It is especially important as it gives an overview of what you’ve earned whilst a member of USS. There is a new online website with more information on understanding your service statement and the support available, please go to www.pru.co.uk/servicestatement
Final Salary Benefits Section statements were issued in July, Career Revalued Benefits Section statements will be issued by USS later in the year. Please read on, as there is support to help you make the most of this. Your USS is an important part of your overall benefit package. At retirement it provides you with a pension for life, with increases and a tax-free lump sum, as well as other associated benefits.
But how do you know if that will be enough? The information in your service statement, along with the online benefit modeller at www.pru.co.uk/servicestatement could enable you to get a calculation of your current benefits and an estimate of what they could be worth at retirement. As a guide, in 2011 the average USS member received an annual pension income of around £16,700. It’s a good time to use the above tool and think about how much you may need to maintain your current lifestyle in the future.
The important thing is that you are aware of your options now, and can make informed choices that could help you to maintain your standard of living in the future. It is always good to chat to someone about your individual circumstances. You can talk to Prudential on 0845 268 2867 about how you can make a difference to your retirement savings. Their UK based Retirement Specialist Team lines are open 9am to 6pm, Monday to Friday. Please note they cannot give financial advice.
In the current economic climate, it’s more important than ever to get good value for money – and your pension savings are no different. With this in mind we’d like to share some expert tips which could help your pension pound go further.
Five of the best from USS: Best kept secrets
You’re already a member of a great pension scheme, but there’s another great way to improve your retirement income through Additional Voluntary Contributions (AVCs). AVCs are a flexible pension bolt-on to your USS pension scheme. They are tax-efficient contributions made from your salary. Your contributions are invested to help build an additional pension “pot”. You can then use this pot to get extra benefits (extra pension or tax-free cash) on top of your standard USS benefits. You can adjust your contributions whenever you like, just by making a phone call. It doesn’t need to be a big financial obligation - making small and frequent contributions could help give you some peace of mind and help you stay in control of your retirement.
Please note that from 19 August 2012, Prudential are introducing an early exit charge when Money Purchase Funds are withdrawn within five years. The charge will only apply to the funds of new contributors (as defined by Prudential) who commence Money Purchase AVCs on or after 19 August 2012 and who take their funds (for example, through retirement) within five years of Prudential’s receipt of the first contribution. Therefore, if you are considering the purchase of AVCs and do not want to be affected by the change, the latest date you can commence a new Money Purchase AVC with Prudential will be 8 June 2012. Full details of the charges and a number of exceptions are explained in the Prudential Addendum documents - Prudential Early Exit Charge Addendum (PDF, 50 KB)
You can obtain more information from Prudential by telephoning 0800 515914.