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.
17/8/2021
Editorial
<p>When the word ‘pension’ is mentioned, people’s faces often say it all, from screwed-up expressions to looks of confusion. But these are justified - there is so much pension misinformation and complicated jargon that many can be put off
by before they’ve even started. <br><br>But saving for your pension doesn’t have to be complicated at all. We have lots of tools and information available so you can navigate your pension with ease and relax knowing that you’ve
got that part of life covered. <br><br>Before we tell you more about what is available to you as an RPS member, let’s debunk some pension myths that are out there. <br><br></p><h2>Myth — All pension schemes are the same </h2><p>Although the end goal for all schemes is to help you save money for when you retire, there are different types of pension arrangement available. <br><br>As of 2020, The Railways Pension Scheme had over 347,000 active and retired members and provides
pensions for 147 companies. Commonly known as the RPS, it is one of the UK’s largest pension arrangements and paid out £1,191m in benefits at the end of 2020. <br><br>Advantages of the RPS include:<br></p><ul><li>Contributions are made by both members and their employer and invested into pooled investment funds, which mean they benefit from economies of scale in terms of management costs and access to a wide range of investments. However, the assets for each
section are separately identifiable</li><li>There is a single Trustee that oversees investments management and governance</li><li>Movement of employees between participating rail companies is simplified, and it may be possible to change employer while staying in the Scheme. You can check this with RPMI, the pensions administrator, by emailing <a href="mailto:csu@railpen.com">csu@railpen.com</a>, or you can phone the Helpline on 0800 012 1117</li></ul><p>The RPS is open to all eligible rail employees and those who have a legal right to join.<br><br></p><h2>Myth — The State Pension alone is enough</h2><p>At the time this article is published, the full State Pension is £179.60 a week, however the actual amount you get depends on your National Insurance record – you’ll usually need to have 10 qualifying years on your NI record to get any
of the State Pension. <br><br>You’ll also only be able to start claiming your State Pension when you reach your State Pension age. The Government is gradually increasing State Pension age and is currently 66 but set to increase to 67 by
2028. <br><br>So it’s important to think about whether this is enough for your future plans. Life expectancy is ever-increasing so if you don’t want to compromise your current lifestyle and salary, taking an interest in your pension
planning is a great way to ensure you’re prepared for the future. <br><br></p><h2>Myth — Pensions are difficult to manage and too complicated </h2><p>Pensions can seem daunting, but on the RPS website we have lots of helpful articles, tools, and information to help you, wherever you are on your pension journey.
<br><br>Our <a href="AE2AAFE8-1836-4E1F-92C6-5F79EB807681">FAQs section</a> answers everything from how a pension works and
who looks after the money you save to paying extra and investment funds. <br><br>There are also plenty of <a href="D74B6C1C-A60C-4811-A066-F5D3959845F5">videos</a> available that cover <a href="B5339AA3-CE53-4CD9-AF71-0F28EB46AC42">where to start</a> as well as <a href="C922E3E9-BC84-4688-82A4-69419EF61481">tax and other complex pension topics</a> in a way that may be easier to digest. Make sure to register and/or log into your myRPS
account today so you can take advantage of our:<br></p><ul><li>Pension Planner (for active members of the defined benefit sections) – to show what your annual income could be when you stop work</li><li>Retirement Modeller (for IWDC members) – also to show what your annual income could be when you stop work</li></ul><p>By <a href="https://member.railwayspensions.co.uk/login" data-sf-ec-immutable="">using your myRPS account</a>, you can also request estimates of your retirement benefits, nominate those you love so the Trustee knows who you want your money to go to, and ask us a question via the Virtual Assistant.<br></p><ul></ul><h2><br>Myth — If you've lost track of your pension, it's gone forever </h2><p>When you change your place of work, it’s likely that you will be enrolled into a new works pension scheme. This often means that you end up with lots of different pension pots if you move from job to job. <br><br>If you’ve paid into a
pension in any of your previous jobs, you can use the <a href="https://www.gov.uk/find-pension-contact-details" target="_blank" data-sf-ec-immutable="">Pensions Tracing Service</a> to find details about your own workplace or personal pension scheme
and contact details. You can find out the value of your pots by contacting the pension provider.</p><p>If you can’t remember who your pension provider is and you’re trying to trace a workplace pension, you can also contact your former employer and they should be able to tell you who the provider is.<br><br></p><h2>Myth — It's too late to start </h2><p>Not true! Of course, the earlier you start saving, the easier putting together a decent-sized pension pot can be, but it’s never too late to start saving for the future. Make sure to use our <a href="9701C5A0-2465-483D-ADD4-BB6EC70DFF22">retirement budgeting calculator</a> to estimate how much you may need for the lifestyle you want. The figures are only a guideline so please ask for financial advice via the details below if you need it. <br></p><p><em><br>Neither your pensions administrator, RPMI, or your employer can offer advice. 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.<br></em>
<em style="background-color: initial; font-size: inherit; font-family: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto"><br>You can also find an Independent Financial Adviser in your area on the <a href="https://www.unbiased.co.uk/" target="_blank" data-sf-ec-immutable="">Unbiased website</a>. </em><br></p>
<p>When the word ‘pension’ is mentioned, people’s faces often say it all, from screwed-up expressions to looks of confusion. But these are justified - there is so much pension misinformation and complicated jargon that many can be put off
by before they’ve even started. <br><br>But saving for your pension doesn’t have to be complicated at all. We have lots of tools and information available so you can navigate your pension with ease and relax knowing that you’ve
got that part of life covered. <br><br>Before we tell you more about what is available to you as an RPS member, let’s debunk some pension myths that are out there. <br><br></p><h2>Myth — All pension schemes are the same </h2><p>Although the end goal for all schemes is to help you save money for when you retire, there are different types of pension arrangement available. <br><br>As of 2020, The Railways Pension Scheme had over 347,000 active and retired members and provides
pensions for 147 companies. Commonly known as the RPS, it is one of the UK’s largest pension arrangements and paid out £1,191m in benefits at the end of 2020. <br><br>Advantages of the RPS include:<br></p><ul><li>Contributions are made by both members and their employer and invested into pooled investment funds, which mean they benefit from economies of scale in terms of management costs and access to a wide range of investments. However, the assets for each
section are separately identifiable</li><li>There is a single Trustee that oversees investments management and governance</li><li>Movement of employees between participating rail companies is simplified, and it may be possible to change employer while staying in the Scheme. You can check this with RPMI, the pensions administrator, by emailing <a href="mailto:csu@railpen.com">csu@railpen.com</a>, or you can phone the Helpline on 0800 012 1117</li></ul><p>The RPS is open to all eligible rail employees and those who have a legal right to join.<br><br></p><h2>Myth — The State Pension alone is enough</h2><p>At the time this article is published, the full State Pension is £179.60 a week, however the actual amount you get depends on your National Insurance record – you’ll usually need to have 10 qualifying years on your NI record to get any
of the State Pension. <br><br>You’ll also only be able to start claiming your State Pension when you reach your State Pension age. The Government is gradually increasing State Pension age and is currently 66 but set to increase to 67 by
2028. <br><br>So it’s important to think about whether this is enough for your future plans. Life expectancy is ever-increasing so if you don’t want to compromise your current lifestyle and salary, taking an interest in your pension
planning is a great way to ensure you’re prepared for the future. <br><br></p><h2>Myth — Pensions are difficult to manage and too complicated </h2><p>Pensions can seem daunting, but on the RPS website we have lots of helpful articles, tools, and information to help you, wherever you are on your pension journey.
<br><br>Our <a href="AE2AAFE8-1836-4E1F-92C6-5F79EB807681">FAQs section</a> answers everything from how a pension works and
who looks after the money you save to paying extra and investment funds. <br><br>There are also plenty of <a href="D74B6C1C-A60C-4811-A066-F5D3959845F5">videos</a> available that cover <a href="B5339AA3-CE53-4CD9-AF71-0F28EB46AC42">where to start</a> as well as <a href="C922E3E9-BC84-4688-82A4-69419EF61481">tax and other complex pension topics</a> in a way that may be easier to digest. Make sure to register and/or log into your myRPS
account today so you can take advantage of our:<br></p><ul><li>Pension Planner (for active members of the defined benefit sections) – to show what your annual income could be when you stop work</li><li>Retirement Modeller (for IWDC members) – also to show what your annual income could be when you stop work</li></ul><p>By <a href="https://member.railwayspensions.co.uk/login" data-sf-ec-immutable="">using your myRPS account</a>, you can also request estimates of your retirement benefits, nominate those you love so the Trustee knows who you want your money to go to, and ask us a question via the Virtual Assistant.<br></p><ul></ul><h2><br>Myth — If you've lost track of your pension, it's gone forever </h2><p>When you change your place of work, it’s likely that you will be enrolled into a new works pension scheme. This often means that you end up with lots of different pension pots if you move from job to job. <br><br>If you’ve paid into a
pension in any of your previous jobs, you can use the <a href="https://www.gov.uk/find-pension-contact-details" target="_blank" data-sf-ec-immutable="">Pensions Tracing Service</a> to find details about your own workplace or personal pension scheme
and contact details. You can find out the value of your pots by contacting the pension provider.</p><p>If you can’t remember who your pension provider is and you’re trying to trace a workplace pension, you can also contact your former employer and they should be able to tell you who the provider is.<br><br></p><h2>Myth — It's too late to start </h2><p>Not true! Of course, the earlier you start saving, the easier putting together a decent-sized pension pot can be, but it’s never too late to start saving for the future. Make sure to use our <a href="9701C5A0-2465-483D-ADD4-BB6EC70DFF22">retirement budgeting calculator</a> to estimate how much you may need for the lifestyle you want. The figures are only a guideline so please ask for financial advice via the details below if you need it. <br></p><p><em><br>Neither your pensions administrator, RPMI, or your employer can offer advice. 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.<br></em>
<em style="background-color: initial; font-size: inherit; font-family: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto"><br>You can also find an Independent Financial Adviser in your area on the <a href="https://www.unbiased.co.uk/" target="_blank" data-sf-ec-immutable="">Unbiased website</a>. </em><br></p>
Blog
Debunking pension myths
Saving for your pension doesn't have to be complicated at all, so let's debunk some pension myths.
When the word ‘pension’ is mentioned, people’s faces often say it all, from screwed-up expressions to looks of confusion. But these are justified - there is so much pension misinformation and complicated jargon that many can be put off
by before they’ve even started.
But saving for your pension doesn’t have to be complicated at all. We have lots of tools and information available so you can navigate your pension with ease and relax knowing that you’ve
got that part of life covered.
Before we tell you more about what is available to you as an RPS member, let’s debunk some pension myths that are out there.
Myth — All pension schemes are the same
Although the end goal for all schemes is to help you save money for when you retire, there are different types of pension arrangement available.
As of 2020, The Railways Pension Scheme had over 347,000 active and retired members and provides
pensions for 147 companies. Commonly known as the RPS, it is one of the UK’s largest pension arrangements and paid out £1,191m in benefits at the end of 2020.
Advantages of the RPS include:
- Contributions are made by both members and their employer and invested into pooled investment funds, which mean they benefit from economies of scale in terms of management costs and access to a wide range of investments. However, the assets for each section are separately identifiable
- There is a single Trustee that oversees investments management and governance
- Movement of employees between participating rail companies is simplified, and it may be possible to change employer while staying in the Scheme. You can check this with RPMI, the pensions administrator, by emailing csu@railpen.com, or you can phone the Helpline on 0800 012 1117
The RPS is open to all eligible rail employees and those who have a legal right to join.
Myth — The State Pension alone is enough
At the time this article is published, the full State Pension is £179.60 a week, however the actual amount you get depends on your National Insurance record – you’ll usually need to have 10 qualifying years on your NI record to get any
of the State Pension.
You’ll also only be able to start claiming your State Pension when you reach your State Pension age. The Government is gradually increasing State Pension age and is currently 66 but set to increase to 67 by
2028.
So it’s important to think about whether this is enough for your future plans. Life expectancy is ever-increasing so if you don’t want to compromise your current lifestyle and salary, taking an interest in your pension
planning is a great way to ensure you’re prepared for the future.
Myth — Pensions are difficult to manage and too complicated
Pensions can seem daunting, but on the RPS website we have lots of helpful articles, tools, and information to help you, wherever you are on your pension journey.
Our FAQs section answers everything from how a pension works and
who looks after the money you save to paying extra and investment funds.
There are also plenty of videos available that cover where to start as well as tax and other complex pension topics in a way that may be easier to digest. Make sure to register and/or log into your myRPS
account today so you can take advantage of our:
- Pension Planner (for active members of the defined benefit sections) – to show what your annual income could be when you stop work
- Retirement Modeller (for IWDC members) – also to show what your annual income could be when you stop work
By using your myRPS account, you can also request estimates of your retirement benefits, nominate those you love so the Trustee knows who you want your money to go to, and ask us a question via the Virtual Assistant.
Myth — If you've lost track of your pension, it's gone forever
When you change your place of work, it’s likely that you will be enrolled into a new works pension scheme. This often means that you end up with lots of different pension pots if you move from job to job.
If you’ve paid into a
pension in any of your previous jobs, you can use the Pensions Tracing Service to find details about your own workplace or personal pension scheme
and contact details. You can find out the value of your pots by contacting the pension provider.
If you can’t remember who your pension provider is and you’re trying to trace a workplace pension, you can also contact your former employer and they should be able to tell you who the provider is.
Myth — It's too late to start
Not true! Of course, the earlier you start saving, the easier putting together a decent-sized pension pot can be, but it’s never too late to start saving for the future. Make sure to use our retirement budgeting calculator to estimate how much you may need for the lifestyle you want. The figures are only a guideline so please ask for financial advice via the details below if you need it.
Neither your pensions administrator, RPMI, or your employer can offer advice. 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.
You can also find an Independent Financial Adviser in your area on the Unbiased website.
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