Understand your IWDC benefits

You’re never too old – or young – to start planning your retirement.

Ways to take your benefits 

Your IWDC pension offers a number of different ways to take your benefits when you retire. For instance, you could:

  • get a flexible income, taking it a bit at a time. This is known as drawdown 
  • get a regular, secure income, known as an annuity
  • take it all as a cash lump sum. We call this total encashment

You can learn more about each option (and the tax implications of each) here and at MoneyHelper.org.uk

Other options may be available in line with pension freedoms. And you may be able to combine these options. However this is not offered directly by the RPS and would need to be facilitated by another provider.

You can also provide for your loved ones, or the charities and organisation that matter to you, by nominating them to receive a lump sum if you die before taking your pension.  Log in to your myRPS account to check your nominations and update them if you wish.

Boosting your benefits

Your contributions into the IWDC are tax-free, up to certain limits, as they are taken from your salary before tax.

You can choose how to invest your contributions for the best long-term returns.

You can top up your pension with Additional Voluntary Contributions (AVCs) and invest these in funds of your choice too. 

Think about when you want to retire 

It’s important that you have an idea when you may want to retire or take your benefits, as this will influence the funds that your contributions should be invested in to help build up your pension pot.

To start with, do you know your Normal Retirement Age (NRA)? You can find it in your Key Features guide when you log in to your account. 

Or, if you have selected a Lifestyle Fund (where your funds are managed for you), you can choose your own Target Retirement Age, which can be as low as 50 (depending on your Scheme membership rights) or as high as 75.

You may be a member of the IWDC but still have preserved DB benefits, either with the RPS or another provider.  If this is the case and you take your benefits before age 55, then legally you must claim all of your benefits at the same time.

You can find out more here

How much might you get?

Every year, you will be sent an Annual Benefit Statement, which gives you an idea of what you might expect to receive in retirement. It's really worth looking through it checking if you're on track to receive the income you'll need for the lifestyle you want when you retire. You can also find out more here