Opting-out of the USS – at what cost?
This blog post is not intended and cannot be taken as financial advice. An individual should seek independent financial advice based on their own circumstances and objectives. One of the concerns that faces the USS pension is the number of eligible members who have opted out of the scheme. As the contribution levels have grown (they are currently now the same as for the TPS pension that is common in post-92 institutions) some people have felt the need to opt out and retain that 9.6% of salary, and perhaps make alternative pension plans. With the contribution level planned currently to go up to 11% in October, and with the unhelpful noises being made about potential further increases in the pipeline as a consequence of the 2020 valuation, it is understandable that some people might query the level of contribution in terms of how it impacts on their take-home pay each month. In the 2020 Report and Accounts of the USS scheme, it was stated that 16% of eligible members had not joined or had opted out of the scheme. In 2015 that figure was 21%, with a dip to 12% in between. There were 147,137 active members of the scheme in … Read more