Saving for retirement when you're 40+

It’s never too early to get your retirement plans on track

Your retirement might seem like a long way off, but understanding how your benefits and savings are building up can help you feel more prepared for your future.

By thinking about the lifestyle you’re aiming for in retirement, you can assess whether you’re saving enough. If not, you may be able to make some adjustments.

The Pensions and Lifetime Savings Association (PLSA) has outlined retirement living standards based on three levels of income, which can give an idea of how much money might be enough for your plans in later life. Find out more on our how much you’ll need page.

While you’re contributing to USS, you’re automatically building benefits in the Retirement Income Builder – the defined benefit (DB) part. This will give you a guaranteed income for life in retirement, and a one-off, tax-free (up to a certain limit) cash lump sum up of three times your pension when you retire.

You might also be building up a savings pot in the Investment Builder – the defined contribution (DC) part of USS – that you’ll be able to flexibly access. You’ll have built up Investment Builder savings if you:

• Earn above the salary threshold 
• Transfer in pensions from elsewhere
• Choose to make additional contributions at any point while you’re paying in to USS.

Log in to our online member portal, My USS to see the value of your Retirement Income Builder benefits and any Investment Builder savings so far. While you’re logged in, you can also use our Benefit Calculator for a personalised projection of what you could receive in retirement; and you can manage any additional contributions and Investment Builder savings.

Get the full picture of your finances

Your USS pension may not be the only source of income for your retirement.

For a more complete view of how you’re working towards your savings goals, it can be helpful to factor in whether you’ll also have any of the following:

• A State Pension, if you’re eligible to receive one. Find out how much you might receive, and when, on the government’s website.
• Other potential sources of income such as property, investments or savings with other pension providers. You can search for lost pension savings with the government’s Pension Tracing Service.

Remember, any income may be subject to tax in retirement. Find out more about tax implications and your pension on our pension tax pages.

A Midlife MOT can provide clarity and support

Getting a Midlife MOT can help you check the status of your work, health and finances, and enable you to set priorities with planning for your future in mind.

The government’s Midlife MOT website is a hub of useful resources to help you make sure you’re heading in the right direction.