Sustainable Ownership blogs
Our blogs on Sustainable Ownership and environmental, social and governance (ESG) issues will help you learn more about the Scheme's approach to its investments.
12/7/2021
Editorial
<p>Figuring out your future can be a daunting task but these simple steps might help...<strong style="background-color: rgba(0, 0, 0, 0); color: var(--color-h2); font-size: var(--font-size-h2); text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto"></strong></p><h2><strong style="background-color: rgba(0, 0, 0, 0); color: var(--color-h2); font-size: var(--font-size-h2); text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto">1. Work out your costs</strong></h2><p>Use the <a href="https://member.railwayspensions.co.uk/knowledge-hub/help-and-support/retirement-budgeting-calculator" data-sf-ec-immutable="" data-sf-marked="">Retirement Budgeting Calculator</a> to work out how much you might need to cover your costs when you stop work. </p><p>The calculator allows you to estimate a wide range of expenses, and you can adjust each to a level that feels right for you. This includes:</p><ul><li>Transport</li><li>Holidays and leisure</li><li>Household costs</li><li>Food and drink</li><li>Helping others </li><li>Clothing and personal and</li><li>Anything else you expect to pay for, including care costs or charity donations
<p>It also takes into account the '<a href="https://www.retirementlivingstandards.org.uk/" target="_blank" data-sf-ec-immutable="">Retirement Living Standards</a>' which set a benchmark for affording certain lifestyles as shown below.</p><img src="https://cdn3.railpen.com/mp-sitefinity-prod/images/default-source/infographics-(current)/rps-retirement-living-standards_v04_matrix-on-own.svg?sfvrsn=2b554472_3" alt="A grid showing how much 3 different levels of retirement lifestyle might cost"><p> </p><p><span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">At the end, the calculator will give you a personal target to aim for with your income.</span></p></li></ul><h2><strong style="background-color: rgba(0, 0, 0, 0); color: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto; font-size: inherit">2. Work out your income</strong><br></h2><p>Look at what money you’ll have coming in when you stop work. </p><p>You can find out how much your RPS pension could be worth by logging in to your <a href="https://member.railwayspensions.co.uk/login" data-sf-ec-immutable="">myRPS account</a>.</p><p>There you’ll find an estimate of your benefits, as well as tools specifically designed to show how much you might have saved by the time you stop work. </p><ul><li>For IWDC members it’s the retirement modeller </li><li>For DB members currently paying into the Scheme it’s the pension planner </li></ul><p>Once you find out what your RPS pension could be worth, add this to any other expected sources of income. This could include:</p><ul><li>Your State Pension – the amount you receive is set by the Government. You can request an estimate online at <a href="https://www.gov.uk/check-state-pension" target="_blank" data-sf-ec-immutable="">gov.uk/check-state-pension</a> </li><li>Other pensions – you may have a private pension or pensions linked to previous employment. You’ll need to speak to each of the providers individually for estimates on those accounts. If you’ve lost their contact details, the Pensions
Tracing Service may be able to help. It’s a free, Government-backed, service available online (<a href="https://www.gov.uk/find-pension-contact-details" target="_blank" data-sf-ec-immutable="">gov.uk/find-pension-contact-details</a>) and
over the phone (0800 731 0193). Other companies offer a similar service but many charge a fee </li><li>Savings and investments – if you have savings outside your pension, get those statements from your bank or other provider </li><li>Combined, these figures should give you an idea of how much money you might get when you stop work. You can then compare this to your target income from step 1.</li></ul><h2><strong>3. Compare your costs with your income and take action if needed</strong></h2><p>If you’re worried that your income in retirement, won’t cover your costs, there are a number of things you can do. </p><ul><li>Consider topping up your pension pot if you’re still paying into the Scheme – think about paying more into your pension if you can. This is known as making Additional Voluntary Contributions (AVCs). It’s tax-free up to certain
limits. You can find out more <a href="/pension-essentials/saving-more">here.</a> </li></ul><ul type="disc"><li>Get advice – speak to an Independent Financial Adviser for guidance. <strong>Liverpool Victoria (LV)</strong> has been chosen as the official partner to give RPS members access to financial advice. LV can be contacted on 0800 023 4187.
This service is authorised and regulated by the Financial Conduct Authority. </li></ul><ul><li>Think about changing your retirement age – you can delay taking your pension, giving you more time to increase it. This is not a decision to be taken lightly and we suggest you speak with a Financial Adviser first.</li></ul><ul><li>Clear your debts – if possible, try to pay off any debts you owe before you retire. </li></ul><ul></ul>
<p>Figuring out your future can be a daunting task but these simple steps might help...<strong style="background-color: rgba(0, 0, 0, 0); color: var(--color-h2); font-size: var(--font-size-h2); text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto"></strong></p><h2><strong style="background-color: rgba(0, 0, 0, 0); color: var(--color-h2); font-size: var(--font-size-h2); text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto">1. Work out your costs</strong></h2><p>Use the <a href="https://member.railwayspensions.co.uk/knowledge-hub/help-and-support/retirement-budgeting-calculator" data-sf-ec-immutable="" data-sf-marked="">Retirement Budgeting Calculator</a> to work out how much you might need to cover your costs when you stop work. </p><p>The calculator allows you to estimate a wide range of expenses, and you can adjust each to a level that feels right for you. This includes:</p><ul><li>Transport</li><li>Holidays and leisure</li><li>Household costs</li><li>Food and drink</li><li>Helping others </li><li>Clothing and personal and</li><li>Anything else you expect to pay for, including care costs or charity donations
<p>It also takes into account the '<a href="https://www.retirementlivingstandards.org.uk/" target="_blank" data-sf-ec-immutable="">Retirement Living Standards</a>' which set a benchmark for affording certain lifestyles as shown below.</p><img src="https://cdn3.railpen.com/mp-sitefinity-prod/images/default-source/infographics-(current)/rps-retirement-living-standards_v04_matrix-on-own.svg?sfvrsn=2b554472_3" alt="A grid showing how much 3 different levels of retirement lifestyle might cost"><p> </p><p><span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">At the end, the calculator will give you a personal target to aim for with your income.</span></p></li></ul><h2><strong style="background-color: rgba(0, 0, 0, 0); color: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto; font-size: inherit">2. Work out your income</strong><br></h2><p>Look at what money you’ll have coming in when you stop work. </p><p>You can find out how much your RPS pension could be worth by logging in to your <a href="https://member.railwayspensions.co.uk/login" data-sf-ec-immutable="">myRPS account</a>.</p><p>There you’ll find an estimate of your benefits, as well as tools specifically designed to show how much you might have saved by the time you stop work. </p><ul><li>For IWDC members it’s the retirement modeller </li><li>For DB members currently paying into the Scheme it’s the pension planner </li></ul><p>Once you find out what your RPS pension could be worth, add this to any other expected sources of income. This could include:</p><ul><li>Your State Pension – the amount you receive is set by the Government. You can request an estimate online at <a href="https://www.gov.uk/check-state-pension" target="_blank" data-sf-ec-immutable="">gov.uk/check-state-pension</a> </li><li>Other pensions – you may have a private pension or pensions linked to previous employment. You’ll need to speak to each of the providers individually for estimates on those accounts. If you’ve lost their contact details, the Pensions
Tracing Service may be able to help. It’s a free, Government-backed, service available online (<a href="https://www.gov.uk/find-pension-contact-details" target="_blank" data-sf-ec-immutable="">gov.uk/find-pension-contact-details</a>) and
over the phone (0800 731 0193). Other companies offer a similar service but many charge a fee </li><li>Savings and investments – if you have savings outside your pension, get those statements from your bank or other provider </li><li>Combined, these figures should give you an idea of how much money you might get when you stop work. You can then compare this to your target income from step 1.</li></ul><h2><strong>3. Compare your costs with your income and take action if needed</strong></h2><p>If you’re worried that your income in retirement, won’t cover your costs, there are a number of things you can do. </p><ul><li>Consider topping up your pension pot if you’re still paying into the Scheme – think about paying more into your pension if you can. This is known as making Additional Voluntary Contributions (AVCs). It’s tax-free up to certain
limits. You can find out more <a href="/pension-essentials/saving-more">here.</a> </li></ul><ul type="disc"><li>Get advice – speak to an Independent Financial Adviser for guidance. <strong>Liverpool Victoria (LV)</strong> has been chosen as the official partner to give RPS members access to financial advice. LV can be contacted on 0800 023 4187.
This service is authorised and regulated by the Financial Conduct Authority. </li></ul><ul><li>Think about changing your retirement age – you can delay taking your pension, giving you more time to increase it. This is not a decision to be taken lightly and we suggest you speak with a Financial Adviser first.</li></ul><ul><li>Clear your debts – if possible, try to pay off any debts you owe before you retire. </li></ul><ul></ul>
Blog
Figuring out your future
What does retirement look like to you? And how will you get there?
Figuring out your future can be a daunting task but these simple steps might help...
1. Work out your costs
Use the Retirement Budgeting Calculator to work out how much you might need to cover your costs when you stop work.
The calculator allows you to estimate a wide range of expenses, and you can adjust each to a level that feels right for you. This includes:
- Transport
- Holidays and leisure
- Household costs
- Food and drink
- Helping others
- Clothing and personal and
- Anything else you expect to pay for, including care costs or charity donations
It also takes into account the 'Retirement Living Standards' which set a benchmark for affording certain lifestyles as shown below.
/rps-retirement-living-standards_v04_matrix-on-own.svg?sfvrsn=2b554472_3)
At the end, the calculator will give you a personal target to aim for with your income.
2. Work out your income
Look at what money you’ll have coming in when you stop work.
You can find out how much your RPS pension could be worth by logging in to your myRPS account.
There you’ll find an estimate of your benefits, as well as tools specifically designed to show how much you might have saved by the time you stop work.
- For IWDC members it’s the retirement modeller
- For DB members currently paying into the Scheme it’s the pension planner
Once you find out what your RPS pension could be worth, add this to any other expected sources of income. This could include:
- Your State Pension – the amount you receive is set by the Government. You can request an estimate online at gov.uk/check-state-pension
- Other pensions – you may have a private pension or pensions linked to previous employment. You’ll need to speak to each of the providers individually for estimates on those accounts. If you’ve lost their contact details, the Pensions Tracing Service may be able to help. It’s a free, Government-backed, service available online (gov.uk/find-pension-contact-details) and over the phone (0800 731 0193). Other companies offer a similar service but many charge a fee
- Savings and investments – if you have savings outside your pension, get those statements from your bank or other provider
- Combined, these figures should give you an idea of how much money you might get when you stop work. You can then compare this to your target income from step 1.
3. Compare your costs with your income and take action if needed
If you’re worried that your income in retirement, won’t cover your costs, there are a number of things you can do.
- Consider topping up your pension pot if you’re still paying into the Scheme – think about paying more into your pension if you can. This is known as making Additional Voluntary Contributions (AVCs). It’s tax-free up to certain limits. You can find out more here.
- Get advice – speak to an Independent Financial Adviser for guidance. 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. This service is authorised and regulated by the Financial Conduct Authority.
- Think about changing your retirement age – you can delay taking your pension, giving you more time to increase it. This is not a decision to be taken lightly and we suggest you speak with a Financial Adviser first.
- Clear your debts – if possible, try to pay off any debts you owe before you retire.
