Five tips to get ahead with future planning in 2025
The arrival of a new year is a good time to look to the future, exploring any steps that might help you achieve your aspirations.
Retirement is a long way off and you may have other milestones in your sights long before you’ll reach it. However, thinking about life after work as early as possible can enable you to get on the right track.
Here’s some planning tips for the year ahead:
1. Prioritise plans for the new year and beyond
As you look at what 2025 might hold – maybe holidays, home improvements or a big purchase are on your to-do list – plan how these will fit with your finances.
Looking a little further into the future can help with planning too. If growing your family, taking steps on the property ladder, or evolving your career could be on the horizon, understand how these life events might affect your USS membership.
2. Make an early start on later lifestyle goals
Retirement might seem far off in the distance, but early planning for the lifestyle you’ll want can help you achieve it. It can also help you understand more about the pension contributions you’re paying now.
If your new year’s resolutions include building for the future or being more savvy with saving, thinking about the retirement income you’re aiming for could be a good start.
Get an idea of how much you might need, based on the Pensions and Lifetime Savings Association’s (PLSA) retirement living standards.
3. Keep track of other income sources
Remember, your USS benefits that both you and your employer are contributing towards may not give the full picture of how your future retirement income is taking shape.
You could be eligible to receive a State Pension in later life, however it might not be enough on its own, and you may have built up pension savings elsewhere to keep in mind.
4. Ensure your hybrid pension works for you
When it comes to financial planning and saving for your future, it’s never too early to check you’re making the most of your USS pension.
There are two parts to USS, first the Retirement Income Builder – the defined benefit (DB) part which gives you a guaranteed income for life and a one-off, tax-free cash lump sum (subject to certain limits) when you retire. While you’re paying in, you’re automatically building DB benefits.
There’s also the Investment Builder – the defined contribution (DC) part. Members that earn above the salary threshold, automatically build a DC pot. But you can also build up DC savings if you choose to make additional contributions at any point while you’re paying in, or if you transfer in a pension from another scheme.
5. Use calculators and tools to help with planning
No matter what stage you’re at, using our Benefit Calculator can provide you with a personalised projection of what you could get from USS in the future. Register or log in to My USS and the calculator will already be populated with some information such as your salary. You can also look at how changes such as saving more or transferring in other pensions might impact your retirement income.
You may get tax relief on any contributions you pay in to USS. Using our Contributions & Tax Calculator in My USS can show you the cost of any contributions to you, as well as how much you could save in tax.
Published: 21 January 2025