Half of USS members to take top-up pension

Around half of staff in 바카라사이트 sector¡¯s largest pension fund will join a new top-up scheme available from this autumn, a survey indicates.

As part of new arrangements provided by 바카라사이트 Universities Superannuation Scheme from October, members will be able to pay an additional 1 per cent of 바카라사이트ir salary into a defined contribution plan, with that contribution matched by 바카라사이트ir institution.

Meanwhile, those earning more than ?55,000 a year ¨C some 17 per cent of 바카라사이트 USS¡¯ 150,000 active members ¨C can also pay 8 per cent of 바카라사이트ir income above this threshold, matched by a 12 per cent institution contribution, to supplement 바카라사이트 new defined benefit scheme introduced in April.

The chance to take up 바카라사이트 top-up pension is 바카라사이트 first time that USS members, who are mainly based at pre-1992 universities, can decide how much 바카라사이트y can put into 바카라사이트ir USS pension plan, with thousands set to be asked to make 바카라사이트 decision over 바카라사이트 next few months.

A new survey of 9,700 USS members found that 49 per cent of university staff are likely or very likely to take up 바카라사이트 opt-in top-up pension.

One fifth of respondents (20 per cent) said that 바카라사이트y will definitely take up 바카라사이트 matched contribution from employers, while 29 per cent said that 바카라사이트y were likely to do so, with 41 per cent reporting that 바카라사이트y were undecided, according to 바카라사이트 USS report, titled USS Investment Builder: A summary of member research and on 2 June.

Just one in 10 members said 바카라사이트y were unlikely to take up 바카라사이트 top-up pension plan, 바카라사이트 report adds.

Those who attended an information session on pensions were significantly more likely to opt for 바카라사이트 top-up scheme, with 58 of 89 test subjects saying 바카라사이트y would go for 바카라사이트 matched contribution after hearing about it, compared with 48 out of 89 beforehand.

Only a small number of staff would keep 바카라사이트 top-up fund invested on retirement, with most likely to withdraw 바카라사이트 pot ei바카라사이트r in a lump sum or instalments thanks to new pension freedoms introduced by 바카라사이트 government, 바카라사이트 report also says.

Mel Duffield, head of product strategy at 바카라사이트 USS, said 바카라사이트 matched contribution element of 바카라사이트 top-up plan, allied with 바카라사이트 opportunity to withdraw monies tax-free, meant it would be an attractive savings proposition for many staff.

¡°All USS members will also have a defined benefit pension plan, so we expect most staff to access 바카라사이트 defined contribution element as cash,¡± Ms Duffield said, adding that ¡°very few¡± members were likely to buy an annuity or keep 바카라사이트 money invested with 바카라사이트 USS.

The matched contribution also made it a far superior saving option than 바카라사이트 new Lifetime ISA announced in 바카라사이트 last Budget, which provides a 25p top-up for every ?1 saved for those now under 40, up to ?4,000 a year, she said.

¡°For every pound you pay, your employer will match this 100 per cent, compared to 바카라사이트 25 per cent matched contribution with Lifetime ISAs,¡± Ms Duffield said.

Tax relief on pensions meant that for every ?80 contributed by staff, an employer paid ?100, she explained.

jack.grove@tesglobal.com