Making the right decision for you

Deciding when to retire and how to take your Personal Retirement Account (PRA) can seem overwhelming.

The IWDC retirement modeller, available in your myRPS account, has been designed to help with that and allows you to experiment with your options.

 It may also help you to break things down as follows…

1. Take stock of where you stand

  • Find out what’s in your PRA by logging into your myRPS account or request an estimate
  • Consider how much money you’ll need to afford the lifestyle you want. A retirement budgeting calculator is available within your MyRPS account to help you estimate this and give you a personal target to aim for with your income.  The calculator takes into account the 'Retirement Living Standards' (RLS) created by the Pensions and Lifetime Savings Association (PLSA), which suggests the following: retirement Living Standards are benchmarks for how much you might need in retirement based on a minimum, moderate or comfortable lifestyle

2. Understand your options

As a member of the IWDC you have the following options for taking your pension pot:

  • 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 all of the money in your PRA as a cash lump sum.  We call this total encashment

It’s important that you understand the benefits and limitations of each of these options before making a decision. More details can be found here

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.

3. Think about what it all means for you

You can use our retirement modeller to experiment with your options.

It works out how much your total pension pot could be when you retire by taking into account the following:

  • your current age
  • salary
  • current personal retirement account balance
  • Target Retirement Age (TRA)
  • contribution rate (this is set automatically depending on which section you’re in)
  • any additional contributions you’ve made (AVCs)
  • whether your fund choices are low, medium or high risk

It also lets you test out the different options for taking your money, such as annuity, drawdown and encashment, to see what impact they would have on your income.

Importantly, it can illustrate the impact on your pension pot and potential benefits at retirement if you make changes to your:

  • TRA
  • contributions
  • and/or fund choices

This will give you something to compare against the estimated costs from point 1. 

You can find the modeller by loggin in to your myRPS account here

You can also find out more about getting your savings on track here

4. Get help and advice

There's plenty of support available to help you understand your options and make a decision.

Liverpool Victoria (LV) has been chosen as the official partner to give RPS members access to financial advice. LV can be contacted on 0800 023 4187.  

You are still free to choose your own Independent Financial Adviser (IFA). You can find an IFA in your area at unbiased.co.uk

More general information is available from MoneyHelper 

If it’s tax that’s confusing you, there’s clear, jargon-free information on the gov.uk website.