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Calculate the impact of the UCU negiotiated outcome on your improved USS retirement income
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Input figures in the yellow boxes to get outputs in the orange boxes
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Approx salary at April 2022
£67,673
(input salary in increments of £100 - no need to add the '£' or the comma)
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Approx salary at April 2023
£71,057
(functions with accuracy in range £10k to £90k)
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Anticipated salary April 2024
£72,833
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Results:
You will remain in the hybrid DB/DC pensions scheme, but now starting DC contributions at around an estimated £70,300.
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You will start to acrrue
£937.44
in annual retirement income from April 2024, instead of
£518.82
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This implies accruing
£2,812.32instead of £1,556.47
each year towards your retirement lump sum
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An additional£215.00
is now also added to your annual income in retirement, because of the augmentation
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And this implies an additional
£645.00
being added to your retirement lump sum
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You also get to keep
£9,433.60
defined contribution that you earned during 2022-24
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As well as the£2,085.60
DC you would have anyway earned had the cuts not happened.
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Details:
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How much defined benefit you accrue between 1 April 2022 and 31 March 2024 following the 2022 cuts ->
£988.52
income per year in retirement (to add to all other accrued annual income)
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How much defined benefit you would have accrued in that time had the cuts not happened ->
£1,771.12
income per year in retirement (to add to all other accrued annual income)
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(These figures assume the uprating of the 22-23 accrual by September 2022 CPI applying the 'soft cap' measure)
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The accrued defined benefit therefore lost in those two years as a consequence of the cuts was ->
£782.61
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The negotiated outcome gives £215 in place of this
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This means you get back
£567.61
less annual retirement income than you lost, but see the DC calculations below 📌
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How much lump sum entitlement you accrue between 1/4/2022 and 31/3/2024 following the 2022 cuts - >
£2,965.55
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How much lump sum entitlement you would have accrued in that time had the cuts not happened ->
£5,313.37
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The accrued lump sum entitlement lost in those two years as a consequence of the cuts ->
£2,347.82
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The negotiated outcome gives £645 in place of this, in addition to the DC amount below, which you keep.
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This means you get back
£1,702.82
less than you lost, but see the DC calculations below 📌
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The negotiated augmentations will grow against inflation in the time up to retirement:
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So, if you are to retire in
10
years from now
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assuming steady inflation at
2.5%
(input in increments of 0.5%)
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Your £215 will be worth
£228.28
additional annual pension upon retirement (on top of your calculated annual retirement income).
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The £645 lump will be worth
£684.85
to take at retirement (on top of your standard lump sum).
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📌 How much defined contribution pension you earned between 1/4/2022 and 31/3/2024 following the 2022 cuts
£11,519.20
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How much defined contribution pension you would have gained in that time had the cuts not happened
£2,085.60
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The vaues produced may be approximate and are no basis for financial planning
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If you would like a version of this spreadsheet to check or experiment with, do contact Mark Taylor-Batty
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