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Investments
You will automatically be invested in the Target Flexible Drawdown strategy unless you have asked to invest in other options. However, you should think carefully about when and how you would like to take your IWDC pot and your goals for the future, to see which investment options are most suitable for you.
The how my investments work page has more information about the different investment options, who they might be suitable for and what you might want to consider before making your choices. You can change your fund choices at any time by logging in to your myRPS account.
You can invest in Lifestyle strategies and/or investment funds. You can invest in as many as you wish. You'll find more information on all the options by selecting each of the 2 tabs below. All funds can experience rises and falls in value over the short to medium term. Generally, the higher the risk rating, the larger the rises and falls are likely to be.
Lifestyle strategies are investment options that allow you to take a hands-off approach if you don't want to actively manage your fund choices. Your money will be invested in a selection of underlying funds and your allocation to each fund will change as you get closer to your Target Retirement Age (TRA).
Lifestyle strategies share a common objective. They aim to build pension savings when you still have a long way to go until you retire, and reduce risk of a fall in value as you near retirement.
In the final 10 years as you approach your Target Retirement Age (TRA), they automatically and gradually move your money from a higher-risk fund (the Long Term Growth Fund) into funds which aim to support how you plan to use your pension pot when you retire (the Corporate Bond Fund and UK Government Fixed Interest Bond Fund).
Before you decide which strategy to invest in, you should think carefully about how you plan to use your pension pot when you're able to take it.
For information on the range of investment funds, select 'the investment funds' tab above.
We recently made changes to the Lifestyle Strategies and UK Government Fixed-Interest Bond Fund. Our fund factsheets are only updated quarterly, so may contain information that is now out of date. For example, the UK Government Fixed-Interest Bond Fund comparator stated in the current versions will be different going forward. We recommend you wait until the factsheets have been updated before using them to inform decision-making.
How it works: As you approach your TRA, your money is moved into funds which aim to maintain enough growth to protect the value of the annuity income you may wish to buy with your pension savings.
Typical investor: Members who want to convert their pension pot to a fixed-interest annuity at retirement.
View the factsheet for the Target Annuity below.
How it works: A greater proportion of your money is left invested in higher-risk funds when you reach your TRA. This means the money that you keep invested has the chance to keep growing and potentially last you longer in retirement.
Typical investor: Members who want to gradually draw down their pension pot as cash in the future.
View the factsheet for the Target Flexible Drawdown below.
How it works: Most of your money is moved into funds with the aim of maintaining the value of your pension pot so it keeps pace with inflation.
Typical investor: Members who want to take their pension pot as cash in one lump sum.
View the factsheet for the Target Lump Sum below.
Investment funds are individual fund options, each with a different objectives and a risk rating. They may be suitable if you want to actively manage your investments.
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.
For information on the range of Lifestyle strategies, select 'the Lifestyle strategies' tab above.
Description: This fund predominantly invests in bonds issued by global companies rather than the UK government.
Objective: The fund aims to generate returns by investing across a range of global companies.
Typical investor: Members getting closer to retirement who want to stabilise the value of their pension pot while maintaining a positive return.
View the factsheet for the Corporate Bond Fund below.
Description: This fund invests in money-market funds and UK government treasury bills.
Objective: Aims to protect - rather than grow - the value of your savings, over the short term.
Typical investor: Members nearing retirement, who want to protect the current value of their investments.
View the factsheet for the Deposit Fund below.
Description: This fund invests in shares (equities) of companies from around the world
Objective: Aims to achieve high growth over the long term. Due to the high risk rating, it should be viewed as a longer-term investment.
Typical investor: Members who are a long way from retirement, and willing to take a bit more risk for potentially higher rewards.
View the factsheet for the Global Equity Fund below.
Description: This fund invests in a wide range of investment types from around the world.
Objective: Aims to grow above inflation over the longer term, but with lower risk than investing purely in shares (equities).
Typical investor: Members who are a long way from retirement, and willing to take a bit more risk for potentially higher rewards.
View the factsheet for the Long Term Growth Fund below.
Description: The fund invests as far as possible and practical in shares (equities) that are considered to contribute to positive environmental and/or social outcomes. It excludes companies involved in certain activities, including tobacco, weapons, alcohol, adult entertainment, thermal coal and oil sands. The fund aims to achieve high growth over the long term. Due to the high risk rating, it should be viewed as a longer-term investment.
Objective: Aims to achieve high growth over the long term. Due to the high risk rating, it should be viewed as a longer-term investment.
Typical investor: Members a long way from retirement willing to take a bit more risk for potentially higher rewards, and who consider environmental, social and governance factors particularly important when investing.
View the factsheet for the Socially Responsible Equity Fund below.
Description: This fund invests in UK government bonds which provide a fixed rate of interest.
Objective: To build pension savings that will provide a fixed rate of income.
Typical investor: Members nearing retirement who want to buy a guaranteed pension income.
View the factsheet for the UK Government Fixed-Interest Bond Fund below.
Description: This fund invests in UK government bonds which provide a rate of interest linked to inflation.
Objective: To build pension savings that will provide an inflation-linked rate of income.
Typical investor: Members nearing retirement who want to buy a guaranteed pension income which increases with inflation.
View the factsheet for the UK Government Index-Linked Bond Fund below.
You may want to take independent financial advice to help you make the right choices for your circumstances. You can find more information on our guidance and advice page.
Liverpool Victoria (LV) can offer RPS members access to financial advice. You can contact LV on 0800 023 4187. This service is authorised and regulated by the Financial Conduct Authority. Alternatively, you can find independent financial advisers in your local area at Unbiased.co.uk.
It is important to be aware that the value of any investments may go down as well as up.
To check and update your investment choices, log in to your myRPS account. You can change either the funds you're currently invested in, the funds you want to invest in in the future, or both.
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Each of Railpen Limited (registered in England and Wales No. 2315380) and Railway Pension Investments Limited (RPIL) (Registered in England and Wales No. 1491097) is a wholly owned subsidiary of Railways Pension Trustee Company Limited (Registered in England and Wales No. 2934539). Registered office for each company: 100 Liverpool Street, London EC2M 2AT. RPIL is authorised and regulated by the Financial Conduct Authority for some of its activities. The administration of occupational pension schemes is not a regulated activity. Full details about the extent of RPIL's authorisation and regulation by the Financial Conduct Authority are available from us on request.
