How investments work
Understand what happens to the AVCs you pay into BRASS and AVC Extra and the choices you can make.
As a defined benefit (DB) member, the information on this page only applies to money you pay in to BRASS or AVC Extra. Your DB pension as a whole works differently and the benefits you receive do not depend on investment performance but on your length of service and salary.
You can find out more by logging in to your myRPS account and checking your Member Guide in the My Library section.
The first choice you need to make for your investments with BRASS and AVC Extra is how hands-on you want to be.
Do you want to:
You can find out about Lifestyle strategies and investment funds below. If you don’t make a decision, you will automatically be invested in a Lifestyle strategy.
If you don’t feel comfortable looking after your investments directly, you can opt for a more ‘hands-off’ approach and choose a Lifestyle strategy.
How a Lifestyle strategy works
Lifestyle strategies build your pension savings when you are younger and reduce the risk of a fall in value as you near retirement. They do this by investing in a selection of underlying funds and changing your allocation to each fund as you get
closer to your ‘target retirement age’ (TRA). While you are still a long way from retirement, more of your money will be allocated in higher-risk funds to try to help them grow more. As you get within 10 years of your TRA, your money will
gradually be moved into lower-risk funds to help reduce the risk and protect the value of the pension pot you've already built up.
Your TRA can be earlier or later than when you would normally take your pension. If you do not chose a TRA then your Normal Retirement Age (NRA) may be used instead.
You can read more about how to check and change your TRA on the following pages:
You can set, check, and change, your TRA when you log in to your myRPS account. Go to ‘My Pension’, then ‘Funds’ and 'Change Target Retirement Age.'
Which Lifestyle strategy you choose should be based on how you might want to use your BRASS or AVC Extra pot when you retire. For more information visit:
Based on your chosen strategy, your Additional Voluntary Contributions (AVCs) will be invested on your behalf by the Trustee.
It’s really important that you take an active interest in your investment choices and review them regularly. No investment is 100% safe and you may want to change your choices depending on your circumstances or world events. You are still able to change your fund choices even if you are no longer paying into BRASS or AVC Extra.
If you feel comfortable looking after your investments and want to be more hands-on, you can manage your investments by yourself.
Your fund choices
There are 7 funds to choose from:
Fund risk ratings and what they mean for you
Each fund has a different objective and risk rating, so you can choose the one that’s right for you. Risk ratings range from low to high.
Please check your investment choices to make sure you are comfortable with the level of risk you decide to take.
Higher risk funds are expected to get higher returns, but they could also drop more sharply in value. Lower-risk funds are less likely to grow much in value but are also more stable so less likely to drop in value. You might want to consider higher risk funds if you're further from retirement and are willing to take a bit more risk for potentially higher rewards.
All funds can experience rises and falls over the short to medium term. The higher the risk rating, the larger the rises and falls are likely to be.
You can find the risk ratings for each of the funds on the fund risk ratings page.
If you choose this hands-on investment funds approach, your money will not automatically move from high to lower-risk funds as you get closer to retirement. This means it’s up to you to choose if and when that’s necessary, and to make the investment fund switch yourself.
Log in to your myRPS account to:
You may also want to speak to an Independent Financial Adviser (IFA) before making any changes.
You can also find more information about how to check and change your investment choices on the following pages: