Benefits of my membership

With your RPS membership, you get access to a a wide range of benefits.

Saving with the RPS is a good step towards a better future

Your IWDC (Industry-Wide Defined Contribution) membership with the Railways Pension Scheme (RPS) offers some great benefits to help you prepare for a better retirement.

While you're working
Your employer pays into your IWDC pot too

While you’re paying into your IWDC pot (known as your Personal Retirement Account), your employer is paying in too.

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You can benefit from tax relief

Your pension contributions are made before you are taxed, so usually you will pay less tax because your tax will be calculated based on a lower amount of earnings. That means more money for your pot but at no cost to you. You can read more about tax relief on the pension tax limits page.


You can choose where to invest your money

You can decide how to make your pot work best for you in the long term. There is a range of funds for you to invest in and you can choose which ones are right for you and how ‘hands-on’ you want to be. You can learn more on the how my investments work and my fund choices pages.

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You can save more

You have the option to top-up your pot by paying Additional Voluntary Contributions (AVCs). This is a tax-efficient way to pay extra and save more for the future.

AVCs can be particularly helpful if you:

  • have extra earnings such as bonuses or overtime (if these are not already part of your Pensionable Pay. You can find more information about your Pensionable Pay in your Key Features guide when you log in to your myRPS account).
  • are thinking about taking your benefits early (subject to eligibility), or
  • simply want to save a bit more towards your future

You can find out more about AVCs and how they work in the saving more section.

Death benefits mean you’re looking out for those you care about 

The value of your IWDC Personal Retirement Account (PRA) will be paid to your beneficiaries if you die before you take it.

Those you care about might additionally get a tax-free cash lump sum in addition to your PRA if you die while you're still paying into the Scheme. You can tell the Trustee who you would like the lump sum to go to by making a ‘Nomination’ in your myRPS account. 

You can read more about death benefits and how they are paid in your Member Guide and Key Features leaflet, which you can find when you log in to your myRPS account.

Try the DC Retirement Modeller

The DC Retirement Modeller is a great way to see the difference you could make to your pot by paying in extra money through Additional Voluntary Contributions (AVCs). You can also use the modeller to see the different ways you can take the money from your pot when you're ready.

Log in to your myRPS account and go to the Planning for the future area to find the tool. 

I'm planning for the future
When you retire
There are different ways you can take your pot

As an IWDC member, you can take your pot in a number of ways, depending on what suits your needs.

You could:

  • get a flexible income, taking it a bit at a time – known as ‘drawdown’
  • get a regular, secure income – known as an ‘annuity’
  • take it all as a cash lump sum – known as ‘total encashment’

You can learn more about each option (and the tax implications of each) on our how I can take my IWDC pot page and at MoneyHelper.org.uk.

Other options may be available and you may be able to combine these options. However, this is not offered directly by the Scheme and you would need to transfer your IWDC savings to another provider first.

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MoneyHelper

Get free pensions guidance and information on taking your pot.

How much might you get?

Every year, you will be sent a statement so you can see the current value of your pot. It will also give you an idea of what the value of your pot could be when you're planning to take it. It's worth checking your statement to see if you're on track to receive the income you'll need for the lifestyle you want in retirement.

You can also use the DC Retirement Modeller tool when you log in to your myRPS account. This will show the estimated value of your Personal Retirement Account when you plan to take it. 


What to read next...

How I can take my IWDC pot

Find out more about the different ways you can take your IWDC pot.

 

Saving more

Find out how to boost your pension savings by making Additional Voluntary Contributions (AVCs). 

When to retire

Find out when you can take your IWDC pot.