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<p><em>This blog is the first is a series of 3 articles on saving more with BRASS, so stay tuned for more information coming soon.</em><em></em></p><p>BRASS is the main arrangement for members of the Railways Pension Scheme (RPS) who want to pay more on top of the normal contributions they make towards their pension. </p><p>It’s available to all Defined Benefit (DB) active members and is a great way to boost your retirement income. </p><p>BRASS is popular with our members, and we sometimes receive specific questions about different aspects of saving more with it. We’ve explained some of the specifics of BRASS below to help you get to grips with it.<del cite="mailto:Rob%20Hughes" datetime="2025-04-08T07:12"> </del><br></p><p>Please visit the <a href="https://member.railwayspensions.co.uk/defined-benefit-members/saving-more-BRASS-AVC-Extra/saving-more-with-BRASS" data-sf-ec-immutable="">Saving more with BRASS area of the website</a> for more information.&nbsp;</p><p>&nbsp;</p><h4>The fundamentals of BRASS</h4><h3>Who’s BRASS available to</h3><p>BRASS is available to anyone who is a DB active member of the RPS and wants to save more towards their pension. <br></p><p>It may be particularly useful to you if you have additional earnings which don’t quality for your main Scheme pension, such as overtime or bonus payments, for example. </p><p>&nbsp;</p><h3>How to join BRASS</h3><p>To join BRASS, speak to your employer. They’ll provide you with a form you’d need to complete and return to them. You can also complete the form when you <a href="https://member.railwayspensions.co.uk/login" data-sf-ec-immutable="">log into your myRPS account</a>. Once logged in, go to the ‘Planning for your future’ area. Once you’ve completed the form, you can download a copy and email it to your employer. <br></p><p>Any BRASS contributions you decide to make are taken from your pay by your payroll department, before tax. That way, you get tax relief on anything you put in to your pot (up to the Annual Allowance limit).</p><p>&nbsp;</p><h3>How does it work</h3><p>When you join BRASS, you’ll automatically start a Personal Retirement Account (PRA). Think of your PRA account as a separate pot of money your BRASS contributions go into. <br></p><p>Your PRA is separate to your defined benefit pension with the Scheme. The savings you have in it are classed as defined contribution savings and are invested in a range of funds. <br></p><p>The aim of the investments is to help the value of your PRA pot to grow over time. But like any investment, the value of your funds could go up and down. <br></p><p>You can <a href="/defined-benefit-members/saving-more-BRASS-AVC-Extra/brass-fund-choices">select the funds you’d like your pot to be invested in</a> or you can leave that to the Scheme’s investment experts – the choice is yours. </p><p>&nbsp;</p><h3>How much you can save into BRASS</h3><p>You can pay as little as £2 per week or £10 per month (if you are paid monthly) on top of the normal contributions you make to your pension. <br></p><p>There’s a maximum you can pay in each year – usually 15% of your gross earnings. If you want to pay more than the BRASS maximum, <a href="https://member.railwayspensions.co.uk/defined-benefit-members/saving-more-BRASS-AVC-Extra/save-more-AVC-Extra" data-sf-ec-immutable="">you can join another arrangement called AVC Extra (not available to Network Rail members).</a> We’ll cover AVC Extra in a future blog post. <br></p><p>You can change how much you contribute at any time – this is especially useful if you know you have a big bill or expense coming up. <br></p><p>And, you can make one-off payments too. You can make a one-off contribution directly when you <a href="/my-rps">log into your myRPS account</a> if you wish and via payroll. <a id="_anchor_1" href="https://railpen-my.sharepoint.com/personal/jenny_prodanova_railpen_com/Documents/0.Personal/2025/Blogs/BRASS%20QA_March%202025_v4.docx#_msocom_1" name="_msoanchor_1" data-sf-ec-immutable=""></a><a href="https://member.railwayspensions.co.uk/defined-benefit-members/saving-more-BRASS-AVC-Extra/saving-more-with-BRASS" data-sf-ec-immutable="">Find out how to do this on the Saving more with BRASS page.</a> </p><p>&nbsp;</p><h3>Changing your BRASS contributions</h3><p>If you are not in a salary sacrifice arrangement, you can increase, pause or stop your contributions at any time. To do this, log into your <a href="https://member.railwayspensions.co.uk/login" data-sf-ec-immutable="">myRPS account</a> and look for a BRASS e-form in the Planning for the future area of your account. You can also contact your employer directly. <br></p><p>If you are in a salary sacrifice arrangement, there may be an annual window in which you can increase, reduce or stop your BRASS contribution.</p><p>&nbsp;</p><h3>What happens to your BRASS contributions if you get a new job</h3><p>If you leave work, you cannot continue to pay into BRASS.<br></p><p>Your BRASS pot will remain invested in your chosen fund(s) until you claim your benefits or transfer to another pension provider.<br></p><p>If you change railway employer, you will stop paying BRASS contributions to your previous employer’s section of the Scheme. If your new employer has a section in the Railways Pension Scheme and you join, you can restart your BRASS contributions by contacting your employer. <br></p><p>Both PRA pots will be kept separate unless you decide to transfer your previous membership along with your BRASS pot into your current membership.</p><p>&nbsp;</p><h3>Transferring your BRASS pot</h3><p>You may be able to transfer the money in your BRASS pot to another arrangement, separately to your defined benefit pension, if you wish. However, you can only do that if you have already stopped paying into BRASS.<br></p><p>To start the process, you can either tell your employer or request a transfer&nbsp;out quote (CETV) when you log into your myRPS account. More information on transferring your BRASS pot is available on the <a href="https://member.railwayspensions.co.uk/defined-benefit-members/saving-more-BRASS-AVC-Extra/taking-my-BRASS" data-sf-ec-immutable="">Taking my BRASS page</a>.<br></p><p>You should think carefully before making a decision to transfer your BRASS pot out of the Scheme. You may want to consider getting financial advice. You can find out more about how do that on our <a href="https://member.railwayspensions.co.uk/pension-essentials/guidance-advice" data-sf-ec-immutable="">guidance and advice</a> page. </p><p>&nbsp;</p><h3>What happens to your BRASS pot if you die in service</h3><p>If you die before taking your BRASS pot, the pot would be included within any tax-free cash lump sum paid to your beneficiaries. The tax-free cash lump sum is paid at the discretion of the Trustee.</p><div><div><div id="_com_1"></div></div></div>

<p>The International Women’s Day (IWD) organisation invites us to take part in the ‘<a href="https://www.internationalwomensday.com/Theme" target="_blank" data-sf-ec-immutable="">Accelerate Action for gender equality</a>’ campaign, which calls to address barriers and biases women face in all walks of life, at a faster pace. You can learn more about IWD and how you can get involved by visiting <a href="https://www.internationalwomensday.com/" target="_blank" data-sf-ec-immutable="">internationalwomensday.com.</a><br></p><p>March is also <a href="https://www.womenshistorymonth.gov/" target="_blank" data-sf-ec-immutable="">Women’s History Month</a>, a chance celebrate women of the past and present day, who’s far-reaching, varied and exceptional contributions to the world often go under-recognised. <br></p><p>Here, we look at incredible women who played a huge hand in rail innovation and see how significant events in the 20th century created greater opportunities for women in rail.<br></p><p><strong>The late 19^th century </strong><br></p><p>Before they could vote, women were involved in inventions that transformed the rail industry. &nbsp;&nbsp;<br></p><p><strong>Eliza Murfey </strong>was one such woman, and was both a physician and an inventor. Murfey is said to have recorded 30 patents for her inventions, though only 23 have been confirmed by historians. <br></p><p>In the 1870s, Murfey invented several devices that made travelling by rail safer, including ‘packings,’ which lubricated railcar bearings, pistons, and axles, to prevent derailments. She then went on to become a prolific mechanical engineer.<br></p><p>1872 saw <strong>E.F. Sawyer</strong> become the first female telegraph operator, hired by the Burlington Railroad in Montgomery, Illinois. This role helped to prevent train collisions, through transmitting important information. Sawyer’s role as a telegraph operator paved the way for future women to enter the field of communications, such as telephone operator <strong>Emma Nutt</strong>, in 1878. <br></p><p>In 1879, inventor <strong>Mary Elizabeth Walton</strong> was given 2 patents for her pollution reduction devices. She created a system that deflected emissions from the smoke stacks on railroad locomotives, and directed emissions through water tanks to trap pollutants, taking them to the sewage system. <br></p><p>Walton also invented a system to reduce the noise pollution of elevated rails, that used sand and cotton in a wooden box around an elevated track. Interestingly, Thomas Edison was trying to invent a similar device, but Walton came up with the method and solution first.<br></p><p><strong>The 20^th Century and the World Wars</strong><br></p><p>Gender roles were rigid in society before the World Wars. At the start of the 20^th Century, there were just 4,564 women employed in Britain’s railways, representing less than 1% of the total workforce. If women did work in rail, it was often in roles that were ascribed to their gender. <br></p><p>But when the World Wars happened, in order to release some male workers to the front, railway companies became one of the first major employers to recruit women. British railway companies employed 55,942 women in the First World War, who often received little training, learnt on the job, and were given much lower pay than the male workers. <br></p><p>These women played pivotal roles in sustaining and evolving the rail industry while men were at war, taking on a variety of roles such as ticket collectors, clerics, and physically labouring roles as engine cleaners and station porters. <br></p><p>Although the 20^th Century saw a significant rise in women working in the rail industry, they were often expected to resign when they got married, or when men returned home from the war.<br></p><p><strong>The present day</strong><br></p><p>Today, women account for around 1 in 5 of the railway work force. Organisations like <a href="https://womeninrail.org/" target="_blank" data-sf-ec-immutable="">Women in Rail</a>&nbsp;are striving to increase diversity in the rail industry by providing networking and career opportunities to women, as well as encouraging key stakeholders to implement it as part of their strategies.<br></p><p>They’re also coming up with initiatives to make working in rail more appealing to women, recognizing the important functions diversity, inclusion and equality have, when it comes to innovation. <strong></strong><br></p><p><strong>A few closing words from your Trustee Chair, Christine Kernoghan</strong><br></p><p>The Scheme’s Trustee Chair, Christine Kernoghan has over 40 years’ experience working in rail and pensions, including roles in project management, operations, and people management. <br></p><p>Commenting on what has helped her to achieve long-standing success in a male-dominated industry, she says: “When I started, there weren’t many women in the room, but the mentors and coaches helped me a lot. I learned very early on that you're only as good as the team that supports you and the teams I’ve worked with over the years have been fantastic.<br></p><p>"My intention has always been to do a good job and to aspire to high standards. Pensions and the railway are both people industries, so clear communication is absolutely key.”<br></p><p>And while it can sometimes feel like there is only one route to success, Christine adds: “You don't necessarily have to climb straight up the career ladder. You can go sideways as well.” <br></p>

<div><h3>&nbsp;</h3><h4>Taking your benefits and staying in your job&nbsp;</h4></div><div><p>If you want to take your pension benefits and keep working, it is possible to do so at any time from age 55, up to age 75.</p></div><div><p>You will not be able to take your pension and keep working before age 55, even if you have a Protected Pension Age. This is in line with pension law.</p></div><div><p>You might have to get your employer’s permission to take your benefits and keep working.</p></div><div><p>When you take your benefits, you give up your right to be an active member of your Section – and any death in service benefits, should you die while you are still working. Your employer might let you re-join the Railways Pension Scheme, or give you the opportunity to join a different workplace pension that provides death in service benefits.</p><div><h3>&nbsp;</h3><h4>Taking your benefits <span style="text-decoration: underline">early</span> and staying in your job</h4></div><div><p>If you take your benefits before your normal retirement age (NRA), this is called taking early retirement. Taking early retirement means your benefits will be reduced compared to what they would be from NRA, as they will likely need to be paid for a longer time.</p></div><div><p>If you stay in work, your pension may be lower as it will not be your only source of income. This is because you are likely to be paying income tax on both your earnings from work, and your pension income.</p></div><div><p>If you retire due to ill-health, are under your normal retirement age, and you start working again, your incapacity pension may be impacted.</p><div><h3>&nbsp;</h3><h4>Taking your benefits, leaving your job, and getting a new job in the future</h4></div><div><p>If you retire – take your benefits and stop working – you can decide to work again in the future. In most cases, if you have taken your benefits after age 55, you will be able to work for any employer in the future.</p></div><div><p>You won’t be entitled to any death in service benefits once you’ve claimed your RPS benefits.</p></div><div><p>If you start working for an employer within the Railways Pension Scheme, they may let you rejoin as an active member or join a different workplace pension scheme.</p></div><div><p>Don’t forget that you pay tax on your pension, so you may be paying tax on both your earnings and your pension which may affect your overall income.</p></div></div><div><h3>&nbsp;</h3><h4>Later retirement - not taking your benefits at NRA and staying in your job&nbsp;</h4></div><div><p>If you’re not ready to stop working when you reach your normal retirement age in the Scheme, you don’t have to. You can continue working and paying into the Scheme, up to age 75.</p></div><div><p>You will continue to be entitled to all the other benefits of being a member, such as death in service benefit, until you leave your job. You will continue accruing additional membership and pension benefits until you leave the Railways Pension Scheme or opt-out.</p><div><p>There may be circumstances where working into your retirement years is both right and wrong for you. Before you consider your options, it’s worth considering the following:&nbsp;</p></div><table><tbody><tr><td><strong>When is it right for you?&nbsp;</strong></td><td><strong>When is it wrong for you?&nbsp;</strong></td></tr><tr><td><ul><li><p>If you’re fit and healthy enough to continue working, you may choose not to take your benefits for a while</p></li><li><p>If you want to increase your total pension amount</p></li><li><p>If you can afford to live off other savings, assets, income or private pensions</p></li></ul></td><td><ul><li><p>If you’re unable to work, such as through ill-health and require some form of income</p></li><li><p>If you have little income or savings and need your pension as a source of income</p></li><li><p>If there are taxation implications</p></li><li><p>If you or a partner claim certain benefits which would be affected by an increase in income</p></li></ul></td></tr></tbody></table><br><h4><span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-size: var(--font-size-h3); text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">Leaving your job and not taking your benefits</span></h4><div><p>If you decide to stop paying in to the Scheme, or leave your job, you will become a preserved member.</p></div><div><p>As a preserved member, you need to take your benefits at your normal retirement age. </p><p>Depending on the rules of your Section, you may be able to put off taking your pension up to the age of 75. In this case, late retirement factors will be applied to your pension. This will increase your benefits, as it’s likely they will be paid over a shorter time.</p><p>If you are eligible to delay taking your benefits after your NRA, we will tell you 3 months before, and you will have 6 months to decide. If you are member of the Network Rail section, we won't automatically pay your benefits at NRA unless you ask us to.&nbsp;</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">&nbsp;</span></p><div><h4>Taking your State Pension later than your State Pension Age</h4></div><div><p>Your State Pension Age (SPA) may differ from your normal retirement age under the rules of your Section of the Scheme.</p></div><div><p>You may want to keep working after State Pension Age, and that’s fine. It’s also possible to defer claiming your State Pension.</p></div><div><p>Under the new State Pension your total amount will increase by up to 1% for every nine weeks it’s deferred. That means, if you hold off claiming your State Pension for a year, your amount could increase by 5.8%.</p><div><h3>&nbsp;</h3><h4>Get advice before making any decisions</h4></div><div><ul><li><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">The </span><a href="https://cdn3.railpen.com/mp-sitefinity-prod/docs/default-source/rayn/guides-for-db-members---active-and-preserved/guide-to-retirement-options-from-the-railways-pension-scheme.pdf?sfvrsn=c6822889_23" target="_blank" rel="noreferrer noopener" data-sf-ec-immutable="" style="font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; white-space: inherit">Read as You Need Guide to retirement options</a><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"> will give you an overview of the choices available. </span></li><li><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"></span>If you’re unsure which type of retirement will be best for you, you may want to get expert help. <a href="https://member.railwayspensions.co.uk/pension-essentials/guidance-advice" target="_blank" rel="noreferrer noopener" data-sf-ec-immutable="" style="font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; white-space: inherit">Find out more on the guidance and advice page</a><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">.</span></li><li><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"></span><a href="https://member.railwayspensions.co.uk/defined-benefit-members/Im-planning-to-take-my-pension/making-the-right-decision" target="_blank" rel="noreferrer noopener" data-sf-ec-immutable="" style="font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; white-space: inherit">Use the steps on the making the right decision page</a><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"> to take stock of your pension to help work out what's best for you. </span></li><li><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"></span>If you're not ready to retire then you may still be able to keep working and start taking your pension. <a href="https://member.railwayspensions.co.uk/defined-benefit-members/Im-planning-to-take-my-pension/staying-in-work" target="_blank" rel="noreferrer noopener" data-sf-ec-immutable="" style="font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; white-space: inherit">Find out more on the staying in work page.</a></li><li>You may wish to get advice before making a decision. There are suggestions of where to get trusted, expert advice on the <a href="https://member.railwayspensions.co.uk/pension-essentials/guidance-advice" target="_blank" rel="noreferrer noopener" data-sf-ec-immutable="" style="font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; white-space: inherit">Guidance and advice page</a><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">.</span></li></ul></div></div></div></div></div>

<p>Here’s some of the key things you need to know about tax, and how it could benefit you and your pension. Please bear in mind that tax allowances are set by the government and are subject to change. You can get the latest updates at <a href="https://www.gov.uk/tax-on-your-private-pension/pension-tax-relief" target="_blank" data-sf-ec-immutable="">gov.uk</a>.&nbsp;<strong></strong></p><h4><strong>Tax relief</strong><strong></strong></h4><p>Saving with your RPS pension is tax efficient, because the money you pay in is taken from your salary before tax is deducted. That means you pay less tax on your salary and save more instead.</p><p>For example, if you’re a basic-rate tax payer (who pays 20% income tax) putting £100 into your pension, would only cost you £80, and the other £20 comes from tax relief.</p><p>You can learn more about tax relief in this short video:&nbsp;</p><div data-sf-ec-immutable="" class="-sf-relative" contenteditable="false" style="width: 560px; height: 315px"><div data-sf-disable-link-event=""><iframe width="560" height="315" src="https://www.youtube.com/embed/YZ7Ho1uMOeU?si=TEdnSKX9IIKiuvdX" title="YouTube video player" sandbox="allow-scripts allow-same-origin allow-presentation allow-popups"></iframe></div></div><h4><strong>&nbsp;</strong></h4><h4><strong>The Annual Allowance</strong><strong></strong><strong></strong></h4><p>The&nbsp;Annual Allowance (AA)&nbsp;is a limit on the amount of your pension savings that can benefit from tax relief each year. </p><p>It means the most you can save tax-free in all your pension arrangements in a single tax year is the lower of either 100% of your earnings, or the AA limit, which is currently £60,000. </p><p>Different limits apply for high earners (the Tapered Annual Allowance) or anyone who has already taken money from a defined contribution (DC) pension pot, including BRASS or AVC Extra (the Money Purchase Annual Allowance). </p><p>You can find out more on <a href="/pension-essentials/pension-tax-limits">the Tax limits page</a> and the <a href="https://cdn3.railpen.com/mp-sitefinity-prod/docs/default-source/rayn/guides-for-all-members/annual-allowance-tax-limits.pdf?sfvrsn=d6e4ef2d_18" target="_blank">Read as you Need guide to annual allowance limits</a>.</p><p>When the new tax year starts on 6 April, your AA will renew. So, if you can afford to, you might think about paying more into your pension now, to use up your remaining AA before the new tax year. See below for details on how to save more.</p><p>If you’ve already used your AA for this tax year, you can carry forward any unused AA from the previous 3 years. This may mean you can pay more into your pension, without having to pay any extra tax.</p><p>&nbsp;</p><h4><strong>Saving more </strong><strong></strong></h4><p>You can&nbsp;save more into your RPS pension by making Additional Voluntary Contributions (AVCs). These are extra payments on top of your normal pension contributions to help boost your savings, and use up your AA. </p><p>You decide how much you want to pay in, starting from as little as £2 per week or £10 per month. These can be regular, or one-off, payments, and you can stop paying AVCs at any time.</p><p>You’ll also get tax relief on your AVCs, just like you do with your regular pension contributions.</p><p>You can also learn more about AVCs and how they could benefit you in this short video:</p><div data-sf-ec-immutable="" contenteditable="false"><div data-sf-disable-link-event=""><iframe width="560" height="315" src="https://www.youtube.com/embed/GFspDXU5PQs?si=WsuD7-9p96kE4Ubp" title="YouTube video player" sandbox="allow-scripts allow-same-origin allow-presentation allow-popups"></iframe></div></div><p>&nbsp;</p><p>The main <strong>AVC arrangement for DB members is BRASS</strong>. You can find out more using the links below:</p><ul><li><a href="/defined-benefit-members/saving-more-BRASS-AVC-Extra/saving-more-with-BRASS">page on BRASS for DB members</a>&nbsp;</li><li><a href="https://cdn3.railpen.com/mp-sitefinity-prod/docs/default-source/rayn/guides-for-active-(contributing)-members/a-guide-for-brass-members.pdf?sfvrsn=18a5265a_23" target="_blank">Read as you Need guide to BRASS</a></li><li><a href="https://cdn3.railpen.com/mp-sitefinity-prod/docs/default-source/rayn/active-network-rail-members/a-guide-for-network-rail-members-of-brassdda4d9894c894cd9b807c7bb0560c976.pdf?sfvrsn=83945e80_25" target="_blank">separate guide for Network Rail members</a></li></ul><p>If you’re <strong>already paying the maximum allowed into BRASS you may be able to pay into AVC Extra instead</strong>. You can find out more using the links below:</p><ul><li><a href="/defined-benefit-members/saving-more-BRASS-AVC-Extra/save-more-AVC-Extra">page on AVC Extra for DB members</a></li><li><a href="https://cdn3.railpen.com/mp-sitefinity-prod/docs/default-source/rayn/guides-for-active-(contributing)-members/a-guide-for-avc-extra-members.pdf?sfvrsn=67264a34_18" target="_blank">Read as You Need guide to AVC Extra</a></li></ul><p>If you’re an <strong>IWDC member in the RPS, any additional voluntary contributions you make, will go directly into your pot,</strong> known as your Personal Retirement Account (PRA). You can find out more in on the <a href="/iwdc-members/Im-still-working/saving-more">saving more page for IWDC members</a>.</p><p>If you’re unsure whether to save more, or how it could benefit you, try thinking about how much you might need in retirement to fund the lifestyle you hope to have, and whether your current savings are enough. You can get tips on how to do that on the <a href="/pension-essentials/saving-more">saving more page</a> and by using the tools in your <a href="/login">myRPS account</a>.&nbsp;</p><p>&nbsp;</p><h4><strong>Tax when you take your benefits </strong><strong></strong></h4><p>Along with allowances while you’re saving, there are tax implications when you come to take your benefits too. This includes limits on the amount you can take as a tax-free lump sum (the Lump Sum Allowance) and the possibility of exceeding your Personal Allowance or going into a higher tax bracket if you take your benefits and continue to work. </p><p>You can find out more on the on <a href="/pension-essentials/pension-tax-limits">the tax limits page</a> and in the relevant planning for retirement section linked below:</p><ul><li><a href="/defined-benefit-members/Im-planning-to-take-my-pension">DB members - planning to take my pension&nbsp;</a></li><li><a href="/iwdc-members/im-planning-to-take-my-iwdc-pot">IWDC members - planning to take my IWDC pot</a></li></ul>

<h2>Paying pensions is at the heart of investment decisions</h2><p>For defined benefit (DB) pensions – which includes most sections of the Scheme – the money that you as members and your employers pay in is pooled together, managed and invested in-house by our award-winning investment team.</p><div><p>We take a diverse approach to investing, and invest in a mix of:<br></p></div><ul><li>Financial assets – like stocks and bonds, in public and private markets</li><li>Real assets – like renewable energy, infrastructure, and property.</li></ul><div><span style="background-color: initial; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">Investing in real assets provides an opportunity for us to deliver attractive long-term returns for your pension.</span></div><div><br></div><p>When it comes to property investment, we invest your pension both abroad and in the UK. Currently, 33% of the assets we manage (£11 billion) are invested in UK assets, £841m of which is across infrastructure, energy, innovative sectors, and community developments.</p><p>Investments work differently for members who pay into the Industry-Wide Defined Contribution (IWDC) Section of the Scheme and for those who save more towards their pension with both or either one of the two Additional Voluntary Contribution arrangements, BRASS and AVC Extra.&nbsp;</p><p>The money that’s paid in is&nbsp;<a href="https://member.railwayspensions.co.uk/iwdc-members/managing-investments/how-investments-work" data-sf-ec-immutable="" data-sf-marked="">invested into funds</a> – the aim being to increase members’ savings over time. Members can choose to have their investments managed for them in one of our Lifestyle strategies. Alternatively, members can make their own investment decisions and choose from a range of 7 funds. They may choose a fund based on their attitude to risk, or their personal values. Members can choose a mix of Lifestyle strategies and investment funds if they wish.</p><h2>Investing in high-quality developments</h2><div>Railpen’s investments in Cambridge are a great example of place-based investments, which aim to secure financial returns for our members, and have a positive local impact too.</div><div><br></div><div>Cambridge is renowned for science and innovation, having been at the forefront of research and development for a century. It is also a hub for global businesses in STEM-related industries (Science, Technology, Engineering and Mathematics) and home to one of the world’s best universities, which together contribute tens of billions to the UK economy – with the potential to grow even further in the years to come.&nbsp;</div><div><br></div><div>Our investment in Cambridge centres around creating a cluster of high-quality spaces, including sustainable offices, laboratories and research facilities and residential space.</div><div><br></div><p><img src="https://cdn3.railpen.com/mp-sitefinity-prod/images/default-source/hero-banners/investments/cambridge/railpen---botanic-place-cgi-745x410-min.jpg?sfvrsn=f14f2dad_5" alt="A CGI illustration of Botanic Place"><br><strong>Botanic Place</strong> – inspired by Cambridge University Botanic Gardens, a highly sustainable workspace with a nature-focused design.&nbsp;</p><p><img src="https://cdn3.railpen.com/mp-sitefinity-prod/images/default-source/hero-banners/investments/cambridge/824-first-base_devonshire-gardens-cambridge_view_02_20220406_745x410-min.jpg?sfvrsn=fd249e1_0" alt="A representation of the Mill Yard site"><br><strong>Mill Yard</strong> – a largely car-free development of sustainable workspaces, residential accommodation, eateries, bars, creche and fitness centre, all within walking distance of Cambridge station. At the heart will be a public park with hedgehog-friendly habitats and edible planting.&nbsp;</p><p><img src="https://cdn3.railpen.com/mp-sitefinity-prod/images/default-source/hero-banners/investments/cambridge/hive-park.jpg?sfvrsn=35dcb2d_3" alt="An illustration of Hive Park"><br><strong>The Beehive</strong> – an innovation park with space for businesses, laboratories, curated gardens and retail outlets.</p><p><img src="https://cdn3.railpen.com/mp-sitefinity-prod/images/default-source/news-images-(2023-on)/cambridge-retail-park_745x410px.jpg?sfvrsn=1cfa83a7_1" alt="Aerial view of Cambridge retail park"><br><strong>Cambridge Retail Park</strong> – expansion of Cambridge’s premier retail park to feature new retail and leisure tenants, including a restaurant and retail warehouse.&nbsp;</p><div><p><img src="https://cdn3.railpen.com/mp-sitefinity-prod/images/default-source/news-images-(2023-on)/bracks-solar-farm_745x410px.jpg?sfvrsn=2b1ef0b4_1" alt="Bracks Solar Farm"><br>Just outside of Cambridge, <strong>Bracks Solar Farm</strong> is a renewable energy investment that powers the equivalent of 8,000 homes. This energy is not only clean but generated in England, which helps us reach our net-zero emissions targets and supports the UK economy.</p><h2>How these investments help secure members’ future</h2><p>Because we're a pension scheme with sections that are open to new members, we take a long-term approach to investing, being mindful that an 18-year-old who joins the rail industry today may not retire for 40 years or more.</p><p>This gives us a very long-term mindset and means we’re able to take investment opportunities over multiple decades to help protect – and enhance – the long-term value of your pension savings.</p><p>Investment in physical things like land, property, infrastructure and natural resources, are an important part of this strategy.</p><p>The developments in Cambridge will place Railpen at the heart of the city’s ambitions across sciences and technology. We anticipate huge growth in both sectors, which could bring significant long-term benefits for members’ pensions.</p><h2>Find out more</h2><p>You can read more about our investments in the <a href="https://member.railwayspensions.co.uk/knowledge-hub/investments/cambridge" data-sf-ec-immutable="">Cambridge Case Study</a>.&nbsp;<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">For more details about the Cambridge developments specifically, visit&nbsp;</span><a href="https://www.railpencambridge.com/" target="_blank" style="font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; white-space: inherit" data-sf-ec-immutable="">railpencambridge.com</a>.</p><p>You can find more general information about where we invest, and why, on the following pages of your member website:&nbsp;<br></p><ul><li><a href="https://member.railwayspensions.co.uk/knowledge-hub/investments/our-approach-to-investing" data-sf-ec-immutable="">Our approach to investing</a></li><li><a href="https://member.railwayspensions.co.uk/knowledge-hub/investments/where-we-invest" data-sf-ec-immutable="">Where we invest</a><br></li></ul><p>And on the Railpen website at&nbsp;<a href="https://www.railpen.com/investing/" target="_blank" data-sf-ec-immutable="">railpen.com/investing</a>.</p></div>

<p>It’s really important that you take control of your retirement planning, no matter what your age. Retirement might feel far away, but with every year that goes by you’re getting closer to it.<br></p><p>The cost of living is also getting more expensive, so it’s essential that you understand how much your retirement could cost and that you plan ahead, to see if your pension savings are enough to cover it.</p><p>Taking some small steps now could make a huge difference to the lifestyle that you’re able to afford in retirement, and this checklist is here to help you on your way.</p><p><img src="https://cdn3.railpen.com/mp-sitefinity-prod/images/default-source/news-images-(2023-on)/10-point-checklist_blog-body-of-text_v02.jpg?sfvrsn=9b0fb649_3" alt="Your 10-point New Year pensions checklist"></p><h3>1. Register for an online myRPS account, if you haven’t already</h3><div>Planning for retirement has never been easier with your myRPS account. <a href="https://member.railwayspensions.co.uk/register" data-sf-ec-immutable="">Register for a secure myRPS account</a> to view your personal pension information and manage it easily online. It’s free to register, and it only takes a few minutes.</div><div><br></div><h3>2. Update your contact details</h3><div>It’s important that we always have your correct contact details, so if we need to contact you about your pension, we can do it quickly. If you change your email address, get a new phone number or move house, let us know straightaway.&nbsp;</div><div><br></div><div>It’s quick and easy to do <a href="https://member.railwayspensions.co.uk/login" data-sf-ec-immutable="">in the ‘Contact Details’ area of your myRPS account</a>.</div><div><br></div><h3>3. Make your death benefit nominations</h3><div>A lump sum of money could be paid to your loved ones if you die before you claim your pension benefits. By making your nominations, you can say who you’d like the money to go to.&nbsp;</div><div><br></div><div>Your railways pension is currently considered separately to the rest of your estate, and isn’t covered by your will. Making your nominations could help to avoid a lot of unnecessary stress for your loved ones, and prevent delays with the payment being made.&nbsp;</div><div><br></div><div>It only takes a couple of minutes to<a href="https://member.railwayspensions.co.uk/login" data-sf-ec-immutable=""> nominate in the ‘My Pension’ section of your myRPS account</a>. It’s important that you keep your nominations up to date regularly, as the person or people you wished to get the money previously may not be the same people you’d choose today.&nbsp;</div><div><br></div><h3>4. See how much you’ll need in retirement</h3><div>You might have an idea of the things you want to do in retirement. Thinking about the lifestyle that you want when you stop working, and having an idea of how much it might cost will give you a target to aim for with your pension savings, and help you to see if your pension is on track to reach it.</div><div><br></div><div><strong>Think about the standard of living that you want&nbsp;</strong></div><div>The Retirement Living Standards (RLS) can give you a general idea of the income you might need when you retire, depending on the lifestyle that you want. You can find more information on the <a href="https://www.retirementlivingstandards.org.uk/" target="_blank" data-sf-ec-immutable="">Retirement Living Standards website</a>.</div><div><br></div><div>It’s important to remember that the RLS figures are based on a target income after tax and don’t include mortgage, or rent costs. You can add your personal living costs using the Retirement Budgeting Calculator, as shown below.&nbsp;</div><div><br></div><div><strong>Get a personalised estimate of how much you might need</strong></div><div>The Retirement Budgeting Calculator gives you a personalised estimate of how much you might need when you retire, after tax. It uses the RLS above as a starting point, and lets you add your individual living costs, such as transport, housing and holidays. You can <a href="https://member.railwayspensions.co.uk/knowledge-hub/help-and-support/retirement-budgeting-calculator" data-sf-ec-immutable="">find the Retirement Budgeting Calculator under Help and Support in the Knowledge hub</a>.</div><div><br></div><div>When you think about how much money you might need when you retire, remember that your retirement income may be taxed. When you take your RPS pension, it will be included in the amount of your income that can be taxed. You can get an estimate of your income after tax, based on current tax rates, at <a href="https://www.gov.uk/estimate-income-tax" target="_blank" data-sf-ec-immutable="">Gov.uk</a>.&nbsp;</div><div><br></div><h3>5. Check how much you’re likely to get in retirement</h3><div>It’s so much easier to plan for your future if you know what your income might be when you retire. When you know how much you’re likely to get, you can then work out whether it will cover your expected costs.</div><div><br></div><div><strong>Use the planning tools in your myRPS account</strong></div><div>See what you might get when you retire, and how taking your benefits at a different time or in another way could affect the amount you might get.</div><div><br></div><div>Defined benefit (DB) members who are still paying into the Scheme can use the Pension Planner. Industry-Wide Defined Contribution (IWDC) members can use the DC Retirement Modeller, under ‘Planning for the future’ <a href="https://member.railwayspensions.co.uk/login" data-sf-ec-immutable="">in your myRPS account</a>.&nbsp;</div><div><br></div><div><strong>Request pension estimates</strong></div><div>You can request an estimate of your pension benefits to see how much you’re likely to get when you retire, and the options you have at a retirement date of your choice. You can <a href="https://member.railwayspensions.co.uk/login" data-sf-ec-immutable="">request as many estimates as you like, at any time in the ‘My pension’ area of your myRPS account</a>.&nbsp;</div><div><br></div><h3>6. Think about your other sources of retirement income</h3><div>Your <a href="https://www.gov.uk/check-state-pension" target="_blank" data-sf-ec-immutable="">State Pension</a>, savings or investments could help you reach your savings target. Find out what they’re likely to be worth and add them together, to see how much retirement income you might have in total.&nbsp;</div><div><br></div><div><strong>Trace old pensions</strong></div><div>If you’ve changed jobs you might also have other pensions, or you may have had a private pension. <a href="https://www.gov.uk/find-pension-contact-details" data-sf-ec-immutable="">The Pensions Tracing Service can help you track old pensions down if you’ve lost their details</a>.</div><div><br></div><h3>7. Pay more in, if you can</h3><div>Paying a little extra on top of your regular pension contributions when you can, while you’re working, could mean you’re able to have a more comfortable retirement. It might even mean you can take more money as a lump sum, or pension when you retire.</div><div><br></div><div>Paying into Additional Voluntary Contributions (AVCs) might be a good idea because:</div><div>• You can pay in as little as £2 a week, and you can change or stop these payments any time</div><div>• You can make one-off payments if you want to</div><div>• You get tax relief on the money you pay in (up to pension tax limits)</div><div><br></div><div>There are 2 Additional Voluntary Contribution (AVC) arrangements in the RPS, they’re called BRASS and AVC Extra. You can <a href="https://member.railwayspensions.co.uk/pension-essentials/saving-more" data-sf-ec-immutable="">learn about the benefits of AVCs and how they work on the Saving more page</a>.</div><div><br></div><h3>8. Check and monitor your investments regularly</h3><div>If you’re an IWDC member, or if you’re a DB member who pays AVCs, your contributions are invested in a range of funds with the aim of helping them grow over time.&nbsp;</div><div><br></div><div>You choose how your contributions are invested, and how these funds perform determines how much money is in your pot. <strong>The value of investment funds can go up, as well as down</strong>. That’s why it’s important to understand your options, and check your investments regularly to see if they’re still working for you. You can <a href="https://member.railwayspensions.co.uk/login" data-sf-ec-immutable="">check and manage your investments at any time in your myRPS account</a>.&nbsp;</div><div><br></div><h3>9. Take financial support and advice</h3><div>If you’re making a big decision about your pension this year, or at any other time, we strongly recommend you take financial support and advice. Speaking to a financial adviser could have an upfront cost, but it may help you in the long run, to make the right decision for your circumstances. There’s also free financial guidance available.</div><div>&nbsp;</div><div>Watch out for pension scams and fraudsters. They often pose as advisers, but they’re actually out to steal your pension savings.&nbsp;</div><div><br></div><div>There’s more information about <a href="https://member.railwayspensions.co.uk/pension-essentials/pension-scams" data-sf-ec-immutable="">how to spot a scam on the pension scams page</a>, and you can find a <a href="https://member.railwayspensions.co.uk/pension-essentials/guidance-advice" data-sf-ec-immutable="">list of trusted advisers and experts on the Guidance and advice page</a>.</div><div><br></div><h3>10. Take control of your financial wellbeing with MoneyFit</h3><div>After the expensive festive period, you might be entering the new year feeling stressed about money.&nbsp;</div><div><br></div><div>MoneyFit can help you manage your money beyond your pension. It offers help and support to deal with money stress, including budgeting tips and debt management, plus links to some useful free resources. <a href="https://www.money-fit.co.uk/app/railpen/first-aid" target="_blank" data-sf-ec-immutable="">You can learn more on the Help and Support page at MoneyFit.</a></div><div><br><br></div>

<p>If you’re no longer paying into the Railways Pension Scheme (RPS), and you have not taken your pension, you’re classed as a preserved member.</p><p>You might be a preserved member if you still have savings in the Scheme, but you might have previously:</p><ul><li>changed job or employer</li><li>decided to opt out of the Scheme, or </li><li>stopped making contributions to the Scheme</li></ul><p>But it’s important to remember that as a preserved member, you still have savings in the Scheme. </p><p>The savings that you built up during the time that you were contributing to the Scheme are still yours, and they will stay <em>preserved</em> in the Scheme until you’re ready to take them. That’s why it’s essential that you know what to do when you’re ready to take them. &nbsp;</p><p>The information in this blog applies to preserved defined benefit (DB) members of the RPS.</p><p>If you’re an IWDC member, please read <a href="https://member.railwayspensions.co.uk/knowledge-hub/news-and-views/blog/rps-blog/2025/01/08/applying-to-take-your-preserved-iwdc-pot" data-sf-ec-immutable="">Applying to take your IWDC pot if you’re no longer paying in.</a> </p><p>If you’re not sure which type of member you are, it’s easy to check when you <a href="https://member.railwayspensions.co.uk/login" data-sf-ec-immutable="">log into your myRPS account</a>, so make sure to <a href="https://member.railwayspensions.co.uk/register" data-sf-ec-immutable="" data-sf-marked="">register for a myRPS account if you haven’t already</a>.</p><p>&nbsp;</p><h4>Before you apply to take your pension benefits</h4><p>Before you apply to take your preserved DB pension, it’s really important that you understand all of the options available to you. Here’s a step-by-step guide to help you do that.<br></p><h3>First, decide when you want to retire</h3><p>As a preserved member, you can choose when you want to take your pension benefits:<br></p><ul><li><strong>Normal retirement</strong> <p>Your Normal Retirement Age (NRA) is the Pension Age defined in the Scheme rules. It’s usually between 60 and 67 years old, but may depend on your Section of the Scheme. You can <a href="https://member.railwayspensions.co.uk/login" data-sf-ec-immutable="" data-sf-marked="">check your NRA in your Member Guide, which is available to read in the My Library area of your myRPS account.</a><br></p></li><li><strong>Early retirement, taking your pension benefits before your NRA</strong> <p>You may be able to take your pension benefits before you reach your NRA, this is known as early retirement and is normally allowed for members aged over 55, increasing to age 57 in 2028. If you have a protected pension age of 50, you may be able to claim your pension benefits before 55. You can <a href="https://member.railwayspensions.co.uk/login" data-sf-ec-immutable="" data-sf-marked="">check your earliest retirement age in your Member Guide</a>. <br></p></li><li><strong>Late retirement, taking your pension benefits after your NRA</strong><br>Depending on the rules for your Section, and when you became a preserved member, you may be able to take your pension benefits after your NRA. This is known as late retirement, and is usually allowed for members up to age 75.<br><br>If you are eligible to take late retirement, we will contact you before your Normal Retirement Date to ask if you would like to postpone claiming your pension benefits. That’s why it is important let us know if you have <a href="https://member.railwayspensions.co.uk/login" data-sf-ec-immutable="" data-sf-marked="">moved house and changed your address in your myRPS account</a>.<br><br>You can find more information about <a href="https://member.railwayspensions.co.uk/defined-benefit-members/Im-planning-to-take-my-pension/when-to-retire" data-sf-ec-immutable="" data-sf-marked="">when you can start taking your pension on the When to retire page</a>.<br></li></ul><h3>Then, request an estimate of your pension benefits</h3><p>An estimate is one of the most important tools to have at hand when you’re planning to take your pension benefits. It shows you what your pension benefits might be worth when you want to take them, and the different options you have for payment. You can request as many online estimates, as often as you need, for free in your myRPS account.<br><br></p><h3>Experiment with the pension planning tools</h3><p>If you’re not sure when you want to retire, or if you’d like to see how choosing a different option for payment could affect the pension benefits you get, you might find it helpful to <a href="https://member.railwayspensions.co.uk/login" data-sf-ec-immutable="" data-sf-marked="">explore your options using the pension planning tools in your myRPS account.</a> <br></p><p>The Retirement Budgeting Calculator will help you work out how much you might need in retirement, and whether your pension is on track to cover those costs. <a href="https://member.railwayspensions.co.uk/login" data-sf-ec-immutable="" data-sf-marked="">Try it by logging in to your myRPS account</a>.<br><br></p><h3>After that, review your investment choices before you take your pension benefits</h3><p>If you paid Additional Voluntary Contributions (AVCs) while you were paying into the Scheme, it’s a good idea to review your investment choices before you take your pension benefits.<br></p><p>There are 2 types of AVCs in the RPS, called BRASS and AVC Extra. You can find more details about taking AVCs on the <a href="https://member.railwayspensions.co.uk/defined-benefit-members/saving-more-BRASS-AVC-Extra/taking-my-BRASS" data-sf-ec-immutable="" data-sf-marked="">taking my BRASS</a> and <a href="https://member.railwayspensions.co.uk/defined-benefit-members/saving-more-BRASS-AVC-Extra/taking-AVC-Extra" data-sf-ec-immutable="" data-sf-marked="">taking my AVC Extra</a> pages.<br></p><p>The value of your investments can go up, or down. So it’s important that you check your investments regularly, and make sure they’re still working for you. <br></p><p>If you want to make any changes to your investment funds, <a href="https://member.railwayspensions.co.uk/login" data-sf-ec-immutable="">you will need to request these in your myRPS account</a> before you return your Retirement Options forms. There’s more information on completing your Retirement Options forms below.&nbsp;</p><p>&nbsp;</p><h3>Take your time to get more information about your options</h3><p>If you’d like more detailed information on your options for payment of your pension benefits, take a <a href="https://cdn3.railpen.com/mp-sitefinity-prod/docs/default-source/rayn/guides-for-db-members---active-and-preserved/guide-to-retirement-options-from-the-railways-pension-scheme.pdf?sfvrsn=c6822889_23" data-sf-ec-immutable="">look at the Read as You Need guide to retirement options</a>. You might refer back to the guides as often as you need to throughout the application process. <br></p><p>To find more details about how your membership works, <a href="https://member.railwayspensions.co.uk/login" data-sf-ec-immutable="">read your Member Guide in your myRPS account</a>. Your Member Guide also explains the options available to you, in line with the rules for your Section of the RPS. </p><p>&nbsp;</p><h3>You may want to take advice on your options</h3><p>Choosing how you want to take your pension benefits is a big decision. For many of us, our pensions are one of the most important financial assets that we have. <br></p><p>To help you make the right choice for your personal circumstances, you may want to get guidance from a pension expert or financial adviser. There is free, and paid for financial advice available to help you. You can <a href="https://member.railwayspensions.co.uk/pension-essentials/guidance-advice" data-sf-ec-immutable="">find a list of trusted financial advisers and pension experts on the guidance and advice page</a>. <br></p><p>If you’re over 50 and you paid in AVCs while you were working, you can get a free appointment with Pension Wise, because AVCs are classed as DC pension benefits. Pension Wise offers free impartial guidance to explain the options to take money from defined contribution (DC) pension pots. You can <a href="https://www.moneyhelper.org.uk/en/pensions-and-retirement/pension-wise" target="_blank" data-sf-ec-immutable="" data-sf-marked="">find out more information, and book your free appointment on the Pension Wise website</a>.</p><p>&nbsp;</p><h3>Beware of pension scams</h3><p>Pension scams are still on the increase, and as you’re approaching retirement, you may be more vulnerable to scams. If you’re contacted out of the blue about your pension, the safest thing to do is reject it or hang up straightaway. It’s really important that you stay on your guard to help protect your pension. <br></p><p>You can find <a href="https://member.railwayspensions.co.uk/pension-essentials/pension-scams" data-sf-ec-immutable="">10 tips to help you spot the signs of a scam and more information on the pension scams page</a>.</p><p>&nbsp;</p><h4>How to start your application to take your pension benefits</h4><p>Here’s what to do when you’re ready to take your pension benefits, and what will happen next.<br></p><p>You should apply to take your pension benefits <strong>3 months before</strong> the date you want your payments to start.</p><h3>How to start your application</h3><p>To start your application, <a href="https://member.railwayspensions.co.uk/knowledge-hub/help-and-support/get-in-touch" data-sf-ec-immutable="" data-sf-marked="">get in touch with the Scheme administrator, Railpen</a>. <br></p><p>It’s a good idea to get an estimate of your pension benefits<strong> 3-6 months</strong> <strong>before</strong> you start your application. This is so that you can see how much you might get, if you take your pension benefits at your chosen retirement date, and the options available to you. If you haven’t had an estimate, it’s <a href="https://member.railwayspensions.co.uk/login" data-sf-ec-immutable="" data-sf-marked="">quick and easy to request one in your myRPS account</a>. <br></p><p>If you have paid into AVC Extra, you must get an estimate of your pension benefits before you start your application to take them. <br></p><ol><li><strong>Tell Railpen your retirement date <br></strong> <p><br>When you’ve reviewed your estimate, you’ll need to tell Railpen the date that you want your payments to start, this is known as your retirement date. <a href="https://member.railwayspensions.co.uk/knowledge-hub/help-and-support/get-in-touch" data-sf-ec-immutable="" data-sf-marked="">You can contact Railpen using the details on the get in touch page</a>, and they will start your application for you. <br></p></li><li><strong>Complete your Retirement Options form</strong> <br></li></ol><p style="margin-left: 30px">When Railpen has started your application, they will send you a Retirement Options form to complete and send back. <br></p><p style="margin-left: 30px">Your Retirement Options form will show your retirement date, details of your options, and the amount that you might get. It’s important that you take the time to read it carefully, and consider taking financial guidance or advice. There’s more information about completing your Retirement Options form below.<br></p><p>You won’t get a final confirmation of the pension benefits you will get until you have returned your completed forms and Railpen has processed your retirement, so you may want to hold off on making any big purchases.</p><p>&nbsp;</p><h4>Completing your Retirement Options form</h4><p>When you’ve decided how you would like to take your pension benefits, it’s time for you to complete and return your Retirement Options form.&nbsp; <br></p><p>You should return your completed form <strong>at least 1 month before</strong> the date that you want to take your pension benefits, known as your retirement date. If forms are returned late, payments may be delayed.<br></p><p>If the bank account that you would like your pension benefits to be paid into is an overseas bank account, there may be another form for you to fill in. Railpen will let you know if this applies to you. <br></p><p>If you’d like more guidance on completing your Retirement Options form, <a href="https://www.youtube.com/watch?v=MWQjG2x5gp4&amp;list=PLSU9RHGNlJacTVKH2MluMlt5FhqO3yB_G&amp;index=2" target="_blank" data-sf-ec-immutable="" data-sf-marked="">watch our short video on the Scheme’s YouTube channel</a>, which explains the information on the Retirement Options form in less than 5 minutes. It’s worth sparing a short amount of time to watch the video, and make sure you understand how the form works before you complete it.</p><h3><strong>More information on the application process</strong></h3><p>If you’d like more information on how to apply to take your pension benefits, including a handy retirement timeline which shows how the process works from start to finish, take a look at the <a href="https://member.railwayspensions.co.uk/defined-benefit-members/Im-planning-to-take-my-pension/applying-for-my-pension" data-sf-ec-immutable="" data-sf-marked="">applying for my pension page on your member website.</a> </p><p><br></p><h3>&nbsp;</h3>

<p>If you’re no longer paying into the Railways Pension Scheme (RPS) and you have not taken your IWDC pot, you’re classed as a preserved member.<br></p><p>You might be a preserved member if you still have savings in the Scheme, but you might have previously:</p><ul><li>changed job or employer,</li><li>decided to opt out of the Scheme, or </li><li>stopped making contributions to the Scheme <br></li></ul><p>But it’s important to remember that as a preserved member, you still have savings in the Scheme. <br></p><p>The savings that you built up during the time that you were contributing to the Scheme are still yours, and they will stay <em>preserved</em> in the Scheme until you’re ready to take them. That’s why it’s essential that you know what to do when you’re ready to take them. &nbsp;<br></p><p>The information in this blog applies to preserved <a href="https://member.railwayspensions.co.uk/iwdc-members/Im-still-working/how-the-IWDC-section-works" data-sf-ec-immutable="" data-sf-marked="">members of the IWDC Section of the RPS</a>.<br></p><p>If you’re a defined benefit member, please read <a href="https://member.railwayspensions.co.uk/knowledge-hub/news-and-views/blog/rps-blog/2025/01/08/taking-your-preserved-defined-benefit-pension" data-sf-ec-immutable="">Applying to take your defined benefit pension if you’re no longer paying in.</a> <br></p><p>If you’re not sure which type of member you are, it’s easy to check when you <a href="https://member.railwayspensions.co.uk/login" data-sf-ec-immutable="">log into your myRPS account</a>, so make sure to <a href="https://member.railwayspensions.co.uk/register" data-sf-ec-immutable="">register for a myRPS account if you haven’t already</a>.</p><h4><br><span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; font-size: var(--font-size-h4); font-weight: bold; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">Before you apply to take your IWDC pot</span></h4><p>Before you apply to take your preserved IWDC pot, it’s really important that you understand all of the options available to you. Here’s a step-by-step guide to help you do that. <br></p><h3>First, decide when you want to retire</h3><p>As a preserved member, you can choose when you want to take your IWDC pot:<br></p><ul><li><strong>Pension Age</strong><p>Your Pension Age is the age at which your pension pot is normally paid. It’s usually between 60 and 65 years old, but may depend on your employer. You can <a href="https://member.railwayspensions.co.uk/login" data-sf-ec-immutable="" data-sf-marked="">check your Pension Age on your Key Features leaflet, which is available to read in the My Library area of your myRPS account.</a></p></li><li><strong>Taking your pot before your Pension Age </strong><p>You may be able to take your pot before you reach your Pension Age, this is known as early retirement and is normally allowed for members aged over 55, This will increase to age 57 in 2028. If you have protected pension age of 50, you may be able to claim your pot before 55. You can <a href="https://member.railwayspensions.co.uk/login" data-sf-ec-immutable="" data-sf-marked="">check your earliest retirement age in your Member Guide</a>. <strong></strong></p></li><li><strong>Taking your pot after your Pension Age</strong></li></ul><p style="margin-left: 30px">You can keep your pot invested until after your Pension Age but you must take it by age 75. </p><p style="margin-left: 30px">You can get <a href="https://member.railwayspensions.co.uk/iwdc-members/im-planning-to-take-my-iwdc-pot/when-to-retire" data-sf-ec-immutable="" data-sf-marked="">more information on when you can take their IWDC pot on the ‘When to retire’ page.</a> <br></p><h3>Then, request an estimate of your IWDC pot</h3><p>An estimate is one of the most important tools to have at hand when you’re planning to take your pot. It shows you what your pot might be worth when you want to take them, and the different options you have for payment. You can <a href="https://member.railwayspensions.co.uk/login" data-sf-ec-immutable="" data-sf-marked="">request as many online estimates, as often as you need, for free in your myRPS account.</a> </p><h3>Experiment with the planning tools</h3><p>If you’re not sure when you want to retire, or if you’d like to see how choosing a different option for payment could affect the amount you get, you might find it helpful to explore your options using <a href="https://member.railwayspensions.co.uk/login" data-sf-ec-immutable="" data-sf-marked="">the pension planning tools in your myRPS account</a>. </p><p>The Retirement Budgeting Calculator and the DC Modeller will help you work out how much you might need in retirement and whether your pension is on track to cover those costs. <a href="https://member.railwayspensions.co.uk/login" data-sf-ec-immutable="" data-sf-marked="">Try them by logging in to your myRPS account.</a><br></p><h3>After that, review your investment choices before you take your IWDC pot</h3><p>It’s a good idea to review your investment choices before you take your pot. </p><p>The value of your investments can go up, or down. So it’s important that you check your investments regularly, and make sure they’re still working for you. </p><p>If you want to make any changes to your investment funds, <a href="https://member.railwayspensions.co.uk/login" data-sf-ec-immutable="" data-sf-marked="">you will need to request these in your myRPS account</a> before you return your Retirement Options forms. There’s more information on completing your Retirement Options forms below. </p><h3>Take your time to get more information about your options</h3><p>If you’d like more detailed information on your options for payment of your IWDC pot, <a href="https://cdn3.railpen.com/mp-sitefinity-prod/docs/default-source/rayn/guides-of-iwdc-members/a-guide-to-retirement-options.pdf?sfvrsn=36c5518a_21" data-sf-ec-immutable="" data-sf-marked="">take a look at the Read as You Need guide to your benefit options.</a> You might refer back to the guides as often as you need to throughout the application process. </p><p>To find more details about how your membership works, <a href="https://member.railwayspensions.co.uk/login" data-sf-ec-immutable="" data-sf-marked="">read your Member Guide and your Key Features leaflet in your myRPS account</a>. Your Member Guide also explains the options available to you, in line with the rules for your employer. </p><h3>You may want to take advice on your options</h3><p>Choosing how you want to take your pot is a big decision. For many of us, our pensions are one of the most important financial assets that we have. </p><p>To help you make the right choice for your personal circumstances, you may want to get guidance from a pension expert or financial adviser. There is free, and paid for financial advice available to help you. You can find a list of trusted <a href="https://member.railwayspensions.co.uk/pension-essentials/guidance-advice" data-sf-ec-immutable="" data-sf-marked=""> financial advisers and pension experts on the guidance and advice page</a>. </p><p>Pension Wise offers free impartial guidance to explain the options to take money from defined contribution (DC) pension pots. If you’re over 50, you can get free impartial advice on your options to take your IWDC pot from Pension Wise. You can <a href="https://www.moneyhelper.org.uk/en/pensions-and-retirement/pension-wise" target="_blank" data-sf-ec-immutable="" data-sf-marked="">find out more information, and book your free appointment on the Pension Wise website</a>.</p><h3>Beware of pension scams</h3><p>Pension scams are still on the increase, and as you’re approaching retirement, you may be more vulnerable to scams. If you’re contacted out of the blue about your pension, the safest thing to do is reject it or hang up straightaway. It’s really important that you stay on your guard to help protect your pension. </p><p>You can find <a href="https://member.railwayspensions.co.uk/pension-essentials/pension-scams" data-sf-ec-immutable="" data-sf-marked="">10 tips to help you spot the signs of a scam and more information on the pension scams page</a>.<br></p><h4>&nbsp;</h4><h4>How to start your application to take your IWDC pot</h4><p>Here’s what to do when you’re ready to take your pot, and what will happen next.</p><p>You should apply to take your pot <strong>3 months before</strong> the date you want your payments to start. </p><h3>How to start your application</h3><p>To start your application, <a href="https://member.railwayspensions.co.uk/knowledge-hub/help-and-support/get-in-touch" data-sf-ec-immutable="" data-sf-marked="">get in touch with the Scheme administrator, Railpen</a>. </p><ol><li><strong>Get an estimate of how much is in your pot <br></strong><p>You must have had an estimate of your pot before you start your application. This is to give you an up-to-date estimate of how much you might get and the options available to you. If you haven’t had an estimate, it’s <a href="https://member.railwayspensions.co.uk/login" data-sf-ec-immutable="" data-sf-marked="">quick and easy to request one in your myRPS account</a>. </p></li><li><strong>Tell Railpen your retirement date <br></strong><p>When you’ve reviewed your estimate, you’ll need to tell Railpen the date that you want your payments to start, this is known as your retirement date. <a href="https://member.railwayspensions.co.uk/knowledge-hub/help-and-support/get-in-touch" data-sf-ec-immutable="" data-sf-marked="">You can contact Railpen using the details on the get in touch page</a>, and they will start your application for you. </p></li><li><strong>Complete your Retirement Options form</strong> <br>When Railpen has started your application, they will send you a Retirement Options form to complete and send back. <br><br>Your Retirement Options form will show your retirement date, details of your options, and the amount that you might get. It’s important that you take the time to read it carefully, and consider taking financial guidance or advice. There’s more information about completing your Retirement Options form below.</li></ol><p>You won’t get a final confirmation of the amount you will get until you have returned your completed forms and Railpen has processed your retirement, so you may want to hold off on making any big purchases.</p><h4><br>Completing your Retirement Options form</h4><p>When you’ve decided how you would like to take your pot, it’s time for you to complete and return your Retirement Options form.&nbsp; </p><p>You should return your completed form <strong>at least 1 month before</strong> the date that you want to take your pot, known as your retirement date. If forms are returned late, payments may be delayed.</p><p>If the bank account that you would like your pot to be paid into is an overseas bank account, there may be another form for you to fill in. Railpen will let you know if this applies to you. </p><p>If you’d like more guidance on completing your Retirement Options form, <a href="https://www.youtube.com/watch?v=MWQjG2x5gp4&amp;list=PLSU9RHGNlJacTVKH2MluMlt5FhqO3yB_G&amp;index=1" target="_blank" data-sf-ec-immutable="" data-sf-marked="">watch our short video on the Scheme’s YouTube channel</a>, which explains the information on the Retirement Options form in less than 5 minutes. It’s worth sparing a short amount of time to watch the video, and make sure you understand how the form works, before you complete it. <strong></strong></p><h3><strong>More information on the application process</strong></h3><p>If you’d like more information on how to apply to take your pot, including a handy retirement timeline which shows how the process works from start to finish, take a look at the <a href="https://member.railwayspensions.co.uk/iwdc-members/im-planning-to-take-my-iwdc-pot/applying-to-take-my-iwdc-pot" data-sf-ec-immutable="" data-sf-marked="">Applying to take my IWDC pot page your member website</a>. </p><p><br></p><div><div><div id="_com_1"><p>&nbsp;</p></div></div></div>

<p>Investments is a topic that comes up quite often in member feedback. If you're one of those interested in finding out more, here's a roundup of some key points and where to find further information on your member website.</p><p>&nbsp;</p><h5>Your pension is invested for your future</h5><p>The Railways Pension Scheme (RPS) is one of the largest and longest-established pension schemes in the UK, with 350,000 members and £34 billion in assets. The Trustee delegates to Railpen who are responsible for administering your pension and for investing the pension contributions (made by you and your employer) to give you an income in retirement.<br></p><p>Railpen’s purpose is to secure members’ future, while positively impacting the world members’ retire into. <br></p><p>For defined benefit (DB) pensions – which includes most sections of the Scheme – the money that you as members and your employers pay in is pooled together, managed and invested in-house by Railpen’s team of investment specialists. <br></p><p>Investments work differently for members who pay into the Industry-Wide Defined Contribution Section of the Scheme and for those who save more towards their pension with both or either one of the two Additional Voluntary Contribution arrangements, BRASS and AVC Extra. The money that’s paid in is invested into funds – the aim being to increase members’ savings over time. <br></p><p>More information on this is available on the following pages:<br></p><ul><li><a href="https://member.railwayspensions.co.uk/iwdc-members/managing-investments/how-investments-work" data-sf-ec-immutable="">IWDC How my investments work</a></li><li><a href="https://member.railwayspensions.co.uk/defined-benefit-members/saving-more-BRASS-AVC-Extra/how-investments-work" data-sf-ec-immutable="">BRASS &amp; AVC Extra How my investments work</a></li><li><a href="https://member.railwayspensions.co.uk/knowledge-hub/news-and-views/blog/rps-blog/2024/06/17/your-pension-is-invested-on-your-behalf" target="_blank" data-sf-ec-immutable="">Your pension is invested on your behalf</a>&nbsp;&nbsp;<br></li></ul><h5>&nbsp;</h5><h5>Members’ outcomes are at the core of our investment approach</h5><p>Railpen’s investment decisions are guided by a set of 6 Investment Beliefs (created by the Trustee and Railpen). <br></p><p>As part of their overall investment approach and beliefs, Railpen focuses on the needs of the members of the Scheme, whose money it invests. Everything it does is centred around achieving the best possible returns for the Scheme and its members. <br></p><p>Find out more about our approach to investing and the 6 Investment Beliefs on the <a href="https://member.railwayspensions.co.uk/knowledge-hub/investments/our-approach-to-investing" data-sf-ec-immutable="">Our approach to investing page</a>.<br></p><p>Raipen takes a diverse approach to investing, and invests primarily in the following:<br></p><ul><li>Financial assets</li><li>Real assets<br></li></ul><p>It invests in financial assets, like stocks and bonds, through both public and private market opportunities. By contrast, it also invests in areas like renewable energy, infrastructure, and property through real asset opportunities. <br></p><p>When it comes to property investment, Railpen invests your pension both abroad and here, the UK. Currently, 33% of the assets Railpen manages (£11 billion) are invested in the UK – the rest is invested abroad.<br></p><p>Watch this video to understand more about how Railpen invests your pension in the UK:<br><strong></strong></p><div data-sf-disable-link-event=""><iframe width="560" height="315" src="https://www.youtube.com/embed/L5TAYUic9_Y?si=4wn3QVRthwL_oYVw" title="YouTube video player" sandbox="allow-scripts allow-same-origin allow-presentation allow-popups"></iframe></div><p><strong></strong><br>We don’t keep all of our eggs in one basket, as the saying goes, for 2 main reasons. Investing in this way allows us to: <br></p><ol><li>deliver better long-term outcomes for our members, and </li><li>gives our investments greater resilience against any risks they may encounter along the way<br></li></ol><p>You can understand more on the <a href="https://member.railwayspensions.co.uk/knowledge-hub/investments/where-we-invest" data-sf-ec-immutable="">Where we invest page</a> and in the following blogs:<br></p><ul><li><a href="https://member.railwayspensions.co.uk/knowledge-hub/news-and-views/blog/rps-blog/2024/06/17/your-pension-is-invested-on-your-behalf" data-sf-ec-immutable="">Your pension is invested on your behalf</a> </li><li><a href="https://member.railwayspensions.co.uk/knowledge-hub/news-and-views/blog/rps-blog/2024/08/12/investments--keeping-it-real" data-sf-ec-immutable="">Investments: keeping it real blog</a><br></li></ul><h5>&nbsp;</h5><h5>Supporting a more sustainable future for us all</h5><p>Railpen call their way of ensuring the investments they make do well for the world we live in ‘sustainable ownership’.<br></p><p>Here’s a video giving you an overview of how your money has been invested with sustainability in mind, taking into account a range of environmental, social and governance (ESG) issues.</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"><iframe width="560" height="315" src="https://www.youtube.com/embed/AO05A_-mH9Y?si=-t2h_TP2S1Ddz4PF" title="YouTube video player" sandbox="allow-scripts allow-same-origin allow-presentation allow-popups">&nbsp;</iframe></span></p><p>It describes how the investment specialists responsible for the investment of your pension money incorporate environmental, social and governance (ESG) issues into the investment decisions they make on members’ behalf.<br></p><p>The main aim of these decisions is to help your money grow. In order to achieve this, Railpen invests in well-run companies that have the potential to thrive over the long term. <br></p><p>Railpen ensures it focuses on the matters that are most meaningful to members of the schemes. <br></p><p>In 2023 members said these were as follows: <br></p><ul><li>Fair treatment of workers</li><li>Fair pay</li><li>Making sure boards can be held to account<br></li></ul><p>Railpen's investment specialists use their influence to encourage the companies they invest in to address and act upon these issues. <br></p><p>They do this in a number of ways including speaking to companies privately (individually or alongside other investors) by making their views known publicly through the use of voting rights or by forming coalitions and influencing policymakers to change their regulations.<br></p><p>You can find out more about Railpen’s sustainable ownership work via the following links:<br></p><ul><li><a href="https://railpen-my.sharepoint.com/personal/jenny_prodanova_railpen_com/Documents/0.Personal/2024/Articles/Investment%20article/ultimately%20negatively%20impact%20member%20outcomes" data-sf-ec-immutable="">Sustainable Ownership page</a></li><li><a href="https://member.railwayspensions.co.uk/knowledge-hub/investments/so-blogs" data-sf-ec-immutable="">Sustainable Ownership blogs page</a></li><li><a href="https://cdn-suk-railpencom-live-001.azureedge.net/media/media/zfbne5pu/sustainable-ownership-member-review-2023.pdf" data-sf-ec-immutable="">Sustainable Ownership Member Review 2023</a></li></ul><p>There’s more about Railpen’s investment approach on their YouTube channel – <a href="https://www.youtube.com/@Railpen_Watch?sub_confirmation=1" data-sf-ec-immutable="" style="font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; white-space: inherit">subscribe to Railpen’s YouTube channel</a><br></p>

<div>Talk Money Week (TMW), an annual campaign launched by the Money and Pensions Service (MaPS), reminds us of the importance of incorporating money talk into our daily lives.</div><div><br></div><h3><strong>Many find it difficult to talk money</strong></h3><p>Research tells us that talking about money is often a taboo subject. <br></p><p>According to MIND, ‘over 1.5 million people are experiencing both problem debt and mental health problems’ which suggests an unsurprising link: that money worries can add to, if not create, poor mental health. <br></p><p>When we feel like we don’t have enough money, and we don’t feel like we can discuss it openly, it can make daily life stressful and difficult. Normalising discussions around money can help us to process money worries, help us come up with solutions, and make us feel comforted that we’re not alone.<br></p><h3><strong>Break the stigma around money talk</strong></h3><p>Talk Money Week is all about sparking money conversations in workplaces, family and friendship groups, schools and wider communities. From pocket money all the way to pensions, it’s designed to get people of all ages comfortable talking about money and to ‘help you get advice from experts if needed.’<br></p><p>Recent data tells us children and young people use money in their daily lives from as early as age 7. MaPS’ research (2023) found that 70% of children aged 7-17 receive regular pocket money, yet just over half of parents/carers say they feel confident talking to their children about money. It also shows that 52% of children buy things online without parental supervision at least some of the time (MaPS, 2024).<br></p><p>These statistics suggest a need to bridge the gap. <br></p><h3><strong>Normalising money talk can have huge benefits</strong></h3><p>Getting comfortable talking about money can help young people make good decisions when it comes to money, and build good habits for the future.<br></p><p>The MaPS say that talking about money can: <br></p><p data-list="1" data-level="1">-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; help people feel supported, and less stressed</p><p data-list="1" data-level="1">-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; help us build stronger personal relationships</p><p data-list="1" data-level="1">-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; increase financial confidence and resilience; and</p><p data-list="1" data-level="1">-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; make people feel better equipped to deal with money problems if and when they arise.<br></p><p>So why not start today?</p><h3><strong>How to get involved</strong> </h3><h4>Think about how to start the money conversation<br></h4><p>People have different attitudes towards money, and it can be helpful to approach the topic sensitively. You can read <a href="https://www.moneyhelper.org.uk/en/family-and-care/talk-money/talking-to-your-partner-about-money" target="_self" data-sf-ec-immutable="">Talking to your partner about money</a> money and <a href="https://www.moneyhelper.org.uk/en/family-and-care/talk-money/talking-with-friends-about-money" target="_self" data-sf-ec-immutable="">Talking with friends about money</a> about money to help guide you on how and where to start.</p><h4>Use your myRPS account to revise your pension <br></h4><p>If you haven’t already, you can sign up for your <a href="https://member.railwayspensions.co.uk/login" data-sf-ec-immutable="">myRPS online account</a> today to access things like P60s, Annual Benefit Statements (ABS’), and to see your current savings. This will help to give you a clear idea of where you’re at, and think about any adjustments you might want to make.<strong></strong></p><h4>Chat to your family about your RPS pension<br></h4><p>You can let your family know about important pension topics, such as:</p><ul><li><p><strong>Nominations for death benefits: </strong>A lump sum of money could be paid to those who matter to you if you die before claiming your pension. By making a nomination, or several, you can say who you'd like the money to go to, such as a person or a charity you care about. </p><p>If you haven’t already, you can make your nominations by logging into your <a href="https://member.railwayspensions.co.uk/login" data-sf-ec-immutable="">myRPS account</a>. You can find out more information on nominations <a href="https://member.railwayspensions.co.uk/pension-essentials/nominations" data-sf-ec-immutable="">here</a>.&nbsp;</p></li><li><strong>Power of Attorney: </strong>A Lasting Power of Attorney (LPA) is a legal document that lets you choose one or more people (known as ‘attorneys’) to help you make decisions, or to make decisions on your behalf.<br></li></ul><p>This can be helpful if you have an accident or an illness and are unable to make your own decisions. You must be 18 or over and have mental capacity (the ability to make your own decisions) when you make your LPA.</p><p>You can find more information by visiting <a href="https://www.gov.uk/power-of-attorney" target="_blank" data-sf-ec-immutable="">Gov.uk/power-of-attorney</a>. </p><h4>Find out if you have a lost pension and tell your friends and family to do the same</h4><p>According to Pensions Age, there’s an estimated £31.1billion in lost pensions in the UK. Tracing a lost pension could boost your pension savings, and make you feel more financially secure for your future. &nbsp;</p><p>If you think you might have a lost pension, you can download this <a href="https://nationalpensiontracingday.co.uk/wp-content/uploads/2024/09/NPTD-Checklist-2024.pdf" target="_blank" data-sf-ec-immutable="">treasure map</a> provided by <a href="https://nationalpensiontracingday.co.uk/" target="_blank" data-sf-ec-immutable="">National Pension Tracing Day</a>. The treasure map includes helpful tips such as thinking about how many times you’ve moved over the course of your working life, and whether or not you updated your address with pension providers. </p><p>For more information and other valuable resources on tracing lost pensions, visit <a href="https://nationalpensiontracingday.co.uk/" target="_blank" data-sf-ec-immutable="">nationalpensiontracingday.co.uk</a>.<br></p>

<p>At times through our working lives, many of us will look forward to the day that we stop work and finally claim our hard-earned pension savings. This National Payroll Week find out how your Railways Pension Scheme (RPS) pension benefits could be paid to you when you take them.&nbsp;</p><p>National Payroll Week aims to help raise awareness about payroll and how it works, so it’s a great opportunity to learn more about how your RPS pension savings may be paid to you, and to explore the options you might have to take them.&nbsp;</p><p>The way your pension is paid depends on:</p><ul><li>whether you’re a defined benefit (DB) member, or an Industry-Wide Defined Contribution (IWDC) member of the RPS; and</li><li>the option you choose when you take your pension benefits&nbsp;</li></ul><p>We can’t help decide which option is best for you, but this blog can offer some of the information you need to make a decision.</p><p>If you’re not sure whether you’re a DB or IWDC member of the Scheme, you can check in the <a href="https://member.railwayspensions.co.uk/login" data-sf-ec-immutable="">My Pension area, under ‘Membership Details’ and ‘Pension Type’ in your myRPS account</a>.</p><p>&nbsp;</p><h3>I’m a defined benefit (DB) member</h3><p>There are many different ways you can take your DB pension, so you can choose the option that’s right for your individual circumstances. The option you choose will determine how your pension benefits are paid to you when you take them. <br></p><p>Here’s a brief summary of the options available to DB members of the Scheme. There’s more detail on the options and how they work on the <a href="https://member.railwayspensions.co.uk/defined-benefit-members/Im-planning-to-take-my-pension/ways-to-take-my-pension" data-sf-ec-immutable="">Ways to take my pension page, in the ‘Defined benefit members’ area of your member website</a>.&nbsp;</p><p>If the rules for your Section of the Scheme allow, you can:</p><p style="margin-left: 30px"><strong>1. Take part lump sum, part pension<br></strong><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">You may be able to take up to 25%, (but normally no more than £268,275) as a tax-free cash lump sum. The rules which explain the exact amount you can take as a lump sum are in your Member Guide. You can </span><a href="https://member.railwayspensions.co.uk/login" data-sf-ec-immutable="" style="font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; white-space: inherit">find your Member Guide in ‘My Library’ when you log in to myRPS</a><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">.</span></p><p style="margin-left: 30px"><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">&nbsp;</span></p><p style="margin-left: 30px"><strong>2. Take it all as pension</strong></p><p style="margin-left: 30px">You may be able to take all of your pension benefits as regular pension payments, and none as lump sum. This is done by converting any lump sum into additional pension. <br></p><p style="margin-left: 30px">This option may be restricted if you’ve paid any Additional Voluntary Contributions (AVCs) to BRASS, and depends on the rules for your Section. There’s more information on <a href="https://member.railwayspensions.co.uk/defined-benefit-members/Im-planning-to-take-my-pension/transferring-my-pension" data-sf-ec-immutable="">the impact of AVCs in the ‘I’m planning to take my pension’ area of your member website</a>.</p><p style="margin-left: 30px"><br></p><p style="margin-left: 30px"><strong style="background-color: rgba(0, 0, 0, 0); color: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit; font-size: inherit">3. Take it all as a cash lump sum</strong><br>This is only possible in some circumstances, and depends on the rules for your Section. You may be able to take it all as a cash lump sum if: </p><ul style="margin-left: 30px"><li>You have a small pension, usually where the value of all your pension benefits is no more than £30,000. You may be able to cash it in under what’s known as ‘Trivial Commutation’ rules. There’s <a href="https://cdn3.railpen.com/mp-sitefinity-prod/docs/default-source/rayn/guides-for-all-members/a-guide-to-trivial-commutation.pdf?sfvrsn=43f64793_16" data-sf-ec-immutable="">more information in the Read as You Need Guide to Trivial Commutation in the Knowledge Hub</a>.</li><li>You take your pension on the grounds of serious ill health, or</li><li>You get a short service leaver refund.</li></ul><p>&nbsp;</p><p style="margin-left: 30px"><strong>4. Take the level pension option</strong></p><p style="margin-left: 30px">The level pension option aims to level out your income in retirement. With this option, you get more pension from the RPS before your State Pension age (SPA), and less pension from the RPS after your SPA. You can <a href="https://www.gov.uk/state-pension-age" target="_blank" data-sf-ec-immutable="">check your State Pension age at Gov.uk</a>.</p><p style="margin-left: 30px">&nbsp;</p><p style="margin-left: 30px"><strong>5. Transfer your pension, with risks</strong></p><p style="margin-left: 30px">You may be able to transfer your DB pension to another pension provider. But transferring carries risks, and <a href="https://member.railwayspensions.co.uk/pension-essentials/pension-scams" data-sf-ec-immutable="">it's important you stay alert for scams</a>. You should think carefully before you transfer, as you could lose the valuable benefits of your DB pension.</p><p style="margin-left: 30px">If you’re considering a transfer, you might benefit from financial advice. You may have to take financial advice by law, depending on the value of your pension benefits. Please <a href="https://member.railwayspensions.co.uk/defined-benefit-members/Im-planning-to-take-my-pension/transferring-my-pension" data-sf-ec-immutable="">read all of the information in the 'Transferring my pension' area</a> before you make a decision. </p><p style="margin-left: 30px">You cannot transfer your pension benefits when they are in payment.</p><p style="margin-left: 30px">&nbsp;</p><p style="margin-left: 30px"><strong>6. Get an extra pension for your dependants</strong><br>A pension will be paid to your eligible dependants, such as a spouse, when you die.<br><br>When you take your pension benefits, you could give up part of your own pension entitlement in order to give extra pension to your dependants.<br><br>If you choose this option:<br></p><ul style="margin-left: 60px"><li>You give up part of your pension – how much you give up will depend on your age and gender, as well as those of your dependant.</li><li>Your named dependant will get a percentage of your normal pension when you die.<br></li></ul><p style="margin-left: 30px">It’s important to keep in mind that if your named dependant dies before you, then the money you’ve given up will be lost and won’t go back into your pension. You also cannot change your named dependant.<br><br></p><p style="margin-left: 30px">For more <a href="https://cdn3.railpen.com/mp-sitefinity-prod/docs/default-source/rayn/guides-for-db-members---active-and-preserved/guide-to-retirement-options-from-the-railways-pension-scheme.pdf?sfvrsn=c6822889_21" data-sf-ec-immutable="">information on the extra pension for your dependants and the other retirement options, check the Guide to retirement options Read as You Need Guide</a> in the Knowledge Hub.&nbsp;</p><p><strong style="background-color: rgba(0, 0, 0, 0); color: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">&nbsp;</strong></p><p><strong style="background-color: rgba(0, 0, 0, 0); color: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">Try each option using the Pension Planner</strong><br></p><p>The Pension Planner lets you change the amount of lump sum you may be able to take when you retire, and see how this then affects your annual pension. The Planner also shows what it may look like if you were to take the level pension option.<br></p><p>If you pay into BRASS, you can use the Planner see how your BRASS fund works as part of your lump sum. <br></p><p>You might use the planner to compare different scenarios, and see how they might affect your lump sum and annual pension. The planner is available in the <a href="https://member.railwayspensions.co.uk/login" data-sf-ec-immutable="">‘Planning for the future’ area of your myRPS account</a>.&nbsp;</p><p>&nbsp;</p><h3>I’m an Industry-Wide Defined Contribution (IWDC) member </h3><p>If you’re an IWDC member of the Scheme, there are 3 main options available to you when you decide to take your pension pot. The options all come with different tax implications, benefits and risks. In short, here are the options available for IWDC members of the Scheme.&nbsp; <br></p><p>If you’d like more information on the options outlined below, take a look at the <a href="https://member.railwayspensions.co.uk/iwdc-members/im-planning-to-take-my-iwdc-pot/how-i-can-take-my-iwdc-pot" data-sf-ec-immutable="">How I can take my IWDC pot page, under ‘IWDC’ members on your member website</a>. <br></p><p>The RPS doesn’t currently offer an annuity or drawdown option directly, so to access these you would need to transfer your pot to another provider.<br></p><p style="margin-left: 30px"><strong>1. Get a flexible income, taking it a bit at a time. This is known as drawdown.</strong><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"><br>A drawdown is a flexible income, which means you can take out cash (or drawdown on your pot) whenever you want to, until your pot runs out.</span></p><p style="margin-left: 30px">There’s more information about the types of drawdown available and how it works on the <a href="https://member.railwayspensions.co.uk/iwdc-members/im-planning-to-take-my-iwdc-pot/understanding-drawdown" data-sf-ec-immutable="">dedicated Understanding drawdown page</a>. <br></p><p style="margin-left: 30px">The Trustee has chosen Legal and General Investment Management (LGIM) to offer access to a drawdown facility. You can <a href="https://www.legalandgeneral.com/workplace/campaigns/rps-pas" target="_blank" data-sf-ec-immutable="" data-sf-marked="">learn more about the LGIM drawdown facility on their website</a>. However, you can also choose your own drawdown provider and we will transfer your funds to them.</p><p style="margin-left: 30px">&nbsp;</p><p style="margin-left: 30px"><strong>2. Get a regular, secure income. This is known as an annuity.</strong></p><p style="margin-left: 30px">An annuity is a policy that you buy using the money from your IWDC pot. An annuity gives you regular pension payments, and guarantees an income for the rest of your life or for a fixed-term. If it is a fixed-term annuity, it will guarantee an income for a set period of time.<br></p><p style="margin-left: 30px">If you’d like to take an annuity, you will need to transfer your pension pot to another provider who offers annuity options. It’s important to research all of the options available, to help you choose the right option for the lifestyle you want when you stop working. <br></p><p style="margin-left: 30px">You can <a href="https://member.railwayspensions.co.uk/iwdc-members/im-planning-to-take-my-iwdc-pot/understanding-annuities" data-sf-ec-immutable="">learn about the types of annuity and how they work on the Understanding annuities page</a>.</p><p style="margin-left: 30px">&nbsp;</p><p style="margin-left: 30px"><strong>3. Take all of the money in your IWDC pot as a cash lump sum, known as total encashment.</strong></p><p style="margin-left: 30px">Total encashment means taking all of your pension pot as a cash lump sum. The value of your pot will be paid directly to you in a single payment, and 25% of it (but normally no more than £268,275) will be tax-free. The rest of the payment will be taxed.&nbsp;&nbsp;<br></p><p style="margin-left: 30px">If you’d like to find out <a href="https://member.railwayspensions.co.uk/iwdc-members/im-planning-to-take-my-iwdc-pot/understanding-encashment" data-sf-ec-immutable="">how total encashment works and the types of encashment available, read the information on the Understanding encashment page</a>.</p><p style="margin-left: 30px">&nbsp;</p><p style="margin-left: 30px"><strong>4. Choose more than one option<br></strong>You can use your pension pot to take a cash lump sum, and to also buy an annuity, or to draw down on it by taking a bit at a time. If you’d like to <a href="https://member.railwayspensions.co.uk/iwdc-members/im-planning-to-take-my-iwdc-pot/how-i-can-take-my-iwdc-pot" data-sf-ec-immutable="" style="font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; white-space: inherit">learn more about how choosing more than one option works, visit the How can I take my IWDC pot page.</a><strong style="background-color: rgba(0, 0, 0, 0); color: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit"></strong><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">&nbsp;</span></p><p style="margin-left: 30px">&nbsp;</p><p><strong>Consider your options using the Retirement Modeller</strong></p><p>The Retirement Modeller shows the options you have to take your pension pot, and what your pension might be worth when you take it based on the option you choose.<br></p><p>You might use it to model a number of retirement scenarios, then compare the options and figures to help you decide which one might be right for you. You can give the Retirement Modeller a try for yourself in the <a href="https://member.railwayspensions.co.uk/login" data-sf-ec-immutable="">‘Planning for the future’ area of your myRPS account</a>.</p><p>&nbsp;</p><h3>Choosing the right option for you</h3><p>Deciding how you want to take your pension benefits is an important decision, and it can seem overwhelming. <br></p><p>As a member of the RPS, you have access to a number of resources that are designed to give you the information to help you choose what’s best for you, including the <a href="https://member.railwayspensions.co.uk/login" data-sf-ec-immutable="">pension planning tools in your myRPS account.</a> <br></p><p>We’ve created a short video that explains your retirement options in less than 5 minutes, available on the Scheme’s YouTube channel. There’s also a suite of informative videos to help you prepare for your life after work, so make sure you <a href="https://www.youtube.com/@railwayspensionscheme" data-sf-ec-immutable=""></a><a href="https://www.youtube.com/@railwayspensionscheme" target="_blank" data-sf-ec-immutable="" data-sf-marked="">subscribe to the channel if you haven’t already.</a></p><ul><li><a href="https://www.youtube.com/watch?v=IJ0qW1jzyDc&amp;list=PLSU9RHGNlJacz8f0QOYD4959PIGYOaCLr&amp;index=1" target="_blank" data-sf-ec-immutable="" data-sf-marked="">DB members can watch the video on retirement options here</a>.</li><li><a href="https://www.youtube.com/watch?v=4uGvpGkBf1A&amp;list=PLSU9RHGNlJacz8f0QOYD4959PIGYOaCLr&amp;index=2" target="_blank" data-sf-ec-immutable="" data-sf-marked="">IWDC members can watch the video on retirement options here</a>.<br></li></ul><p>If you’d like detailed information on your retirement options and how they work, check the dedicated Read as You Need guides.</p><ul><li><a href="https://cdn3.railpen.com/mp-sitefinity-prod/docs/default-source/rayn/guides-for-db-members---active-and-preserved/guide-to-retirement-options-from-the-railways-pension-scheme.pdf?sfvrsn=c6822889_21" data-sf-ec-immutable="">DB members can find their guide to retirement options here</a>.</li><li><a href="https://cdn3.railpen.com/mp-sitefinity-prod/docs/default-source/rayn/guides-of-iwdc-members/a-guide-to-retirement-options.pdf?sfvrsn=36c5518a_21" data-sf-ec-immutable="">IWDC members can read their guide to benefit options from a defined contribution arrangement here</a>.</li></ul><p>&nbsp;</p><p><strong>Take financial guidance and advice</strong></p><p>You may want to get expert help with deciding on the option that’s right for you. It’s worth taking the time to read all of the information available to you before you make your decision. <br></p><p>You can find a <a href="https://member.railwayspensions.co.uk/pension-essentials/guidance-advice" data-sf-ec-immutable="">list of trusted pension experts and advisers on the Guidance and Advice page</a>. Using a financial adviser can be expensive, but it may give you a better long term outcome. <br></p><p>Liverpool Victoria (LV) has been chosen as the preferred partner to give RPS members access to financial advice. LV are able to help with pension and financial advice, and they also have dedicated team who have specific knowledge about the Scheme. <a href="https://www.lv.com/pensions-retirement" target="_blank" data-sf-ec-immutable="" data-sf-marked="">For more information visit the Liverpool Victoria website</a>. <br></p><p>&nbsp;</p><p><strong>IWDC members can get a free appointment with Pension Wise</strong></p><p>If you’re a member of the IWDC Section and you’re aged 50 or over, you may be able to get a free appointment with Pension Wise to discuss the options to take money from your pension pot. Pension Wise is a service from MoneyHelper, backed by the government. You can <a href="https://www.moneyhelper.org.uk/en/pensions-and-retirement/pension-wise" target="_blank" data-sf-ec-immutable="" data-sf-marked="">book your free appointment on the Pension Wise website.</a> <br></p>

<h3><strong style="background-color: rgba(0, 0, 0, 0); color: inherit; font-size: var(--font-size-h3); text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">Our approach to investing</strong></h3><p>The money you pay into the Scheme (plus any returns), is invested into a wide variety of opportunities, companies and brands, which have been carefully selected to generate financial returns in line with the Trustee’s mission to ‘pay members’ pensions securely, affordably and sustainably’.</p><p>Spreading investments in this way helps to deliver better long-term outcomes for our members and gives greater flexibility and resilience against current and future risks.</p><p>This means that along with financial assets, like stocks and bonds, our investments also include more physical opportunities such as renewable energy, infrastructure, property and development in the UK, and others. These are known as <strong>real assets,</strong> and you can learn more about them below. </p><p>You can also read more about our approach to investing using the following links: </p><p><a href="/knowledge-hub/investments/our-approach-to-investing">Web page: Our approach to investing&nbsp;</a></p><p><a href="/knowledge-hub/news-and-views/blog/rps-blog/2024/06/17/your-pension-is-invested-on-your-behalf">Blog post: Your pension is invested on your behalf</a></p><p><br></p><h3><strong>Investing in Real Assets </strong></h3><p>Investing in real assets provides an opportunity for us to deliver attractive long-term returns for your pension.</p><p>Railpen, the Scheme administrator and the organisation responsible for investing members’ money, has a dedicated Real Assets Team. </p><p>They invest in physical assets, which generate positive, long-term returns for our members, such as&nbsp;<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">commercial and residential property and infrastructure, with a particular focus on positive social and environmental investments.</span></p><p>These types of investments are relatable because they are something we can see, hear, even touch in our day-to-day lives – like the houses we live in, where we go to work or shop, and even solar farms that provide green energy to local communities. </p><p>Example investments in this area, include 2 wind farms in Scotland - 1 in South Ayrshire and the other in Argyll and Bute - and 2 biomass investments in Sleaford, England and Port Talbot, Wales, all generating renewable energy to reduce dependence on fossil fuels. </p><p>We have also funded the redevelopment and extension of Monkwearmouth Hospital, an existing mental health facility in Sunderland for the Cumbria, Northumberland, Tyne and Wear NHS Foundation Trust.</p><p>You can read more about our investment in real assets using the following links: </p><p><a href="/knowledge-hub/investments/where-we-invest">Web page: where we invest</a><span style="text-decoration: underline"></span></p><p><a href="https://www.railpen.com/investing/where-we-invest/real-assets/" target="_blank" data-sf-ec-immutable="" data-sf-marked="">Railpen’s real assets page</a></p><p><strong>&nbsp;</strong></p><p><strong></strong><strong></strong></p><h3><strong>Choosing which Real Assets to invest in </strong></h3><p>When making their investment decisions, the Real Assets Team consider a variety of environmental, social and governance factors (ESG). Railpen believe these factors are not only a significant driver of investment outcomes, but also help make a positive contribution to the world our members retire into too. <a href="/knowledge-hub/investments/sustainable-ownership">You can read more about ESG in the Sustainable Ownership section of the member website.</a> </p><p>Alongside its commitment to Sustainable Ownership, Railpen is also a significant investor in something called 'place-based investments’ – investments that seek to secure financial returns for pension scheme members like you, while also seeking to have a positive local impact.</p><p>One such example is in Cambridge, where Railpen has several commercial and retail sites and is currently one of the city’s largest real asset investors. We will be covering Cambridge in greater detail in a separate blog soon, so stay tuned!</p><p>&nbsp;</p>

<p>Maternity, paternity, and adoption leave, as well as part-time working, can ultimately impact your pension contributions and pension benefits you receive. Here’s a straightforward guide to what you need to know.</p><p><strong>Maternity pay and leave</strong></p><p>You are entitled to statutory maternity pay if you:</p><ul><li>have worked for your employer for 26 weeks when you reach the 15th week before your due date, and</li></ul><ul><li>earn on average at least £123 per week.</li></ul><p>You’ll be entitled to 52 weeks statutory maternity leave and receive statutory maternity pay for 39 weeks. For the first six weeks, you’ll get 90% of your average weekly earnings. For the next 33 weeks, you receive 90% of your weekly earnings, or £151.20 a week, whichever is lowest. The remaining 13 weeks are unpaid. These are your statutory rights, but your employer may have a different policy.</p><p>Usually, the earliest your paid maternity leave can start is the 11th week before your baby is due. If your baby is born early, your leave starts the day after the birth.</p><p>You don’t have to take the 52 weeks you’re entitled to, but you must take at least two weeks off work following the birth.</p><p><strong>Paternity leave</strong></p><p>Under the same rules as statutory maternity pay, you are entitled to two weeks’ statutory paternity pay. The weekly rate is £184.03 or 90% of your average weekly earnings, whichever is lower.</p><p><strong>Adoption leave</strong></p><p>If you’re adopting or having a child through surrogacy, you’re usually entitled to paid time off work. This is subject to the same rules and requirements (as above) for maternity pay and the pay structure is identical.</p><p>If you’re adopting as a couple, only one person can get adoption leave. The other might be able to get paternity leave or shared parental leave.</p><p><strong>Shared parental leave</strong></p><p>Alternatively, you and your partner may be able to get shared parental leave and statutory shared parental pay. You can share up to 50 weeks of leave and up to 37 weeks of pay between you.</p><p><strong>Your pension during family leave&nbsp;</strong></p><p>Your pension Scheme membership will be continuous while you are off, unless you have an agreement with your employer for this to be different. Your pension contributions may change during family leave, because pension contributions are calculated using a percentage of your earnings.</p><p>If your pay reduces to nil, then your contributions will stop. Your employer may continue to pay them on your behalf, but you may have to pay these back once you return to work.</p><p>While you’re on family leave, your pension benefits won’t be affected (as long as you haven’t opted out and contributions are paid) and your overall benefits will still be based on your final average pay.</p><p>For more information, check the&nbsp;<a target="_blank" href="https://cdn3.railpen.com/mp-sitefinity-prod/docs/default-source/rayn/guides-for-active-(contributing)-members/guide-for-family-leave.pdf?sfvrsn=9db485ae_12">family leave guide</a>.</p><p><strong>The gender pension gap</strong></p><p>The career breaks women take to care for their families’ amount to £39,000 in lost pension savings, according to NOW: Pensions’ 2024 gender pensions gap&nbsp;<a href="https://www.nowpensions.com/about-us/fair-pensions-for-all/gender-pensions-gap/" target="_blank" data-sf-ec-immutable="" data-sf-marked="">report</a>. This is because, in many cases, women pause their careers or go part-time to care for their children (this is also known as the ‘motherhood penalty’).</p><p>The 2023 Women and Retirement <a href="https://adviser.scottishwidows.co.uk/assets/literature/docs/61096.pdf" data-sf-ec-immutable="" target="_blank">report</a>, produced by Scottish Widows, shows that 44% of UK mothers spend all 5 working days looking after their children (compared to just 16% of fathers). Some women consider having a longer career break, doing part-time work, freelancing or taking on multiple jobs. However, this means that many women might not be earning enough to pay into a private or workplace pension. People in the UK need to earn at least £10,000 a year in order to meet the criteria for pension<a href="https://www.moneyhelper.org.uk/en/pensions-and-retirement/auto-enrolment/automatic-enrolment-an-introduction" target="_blank" data-sf-ec-immutable="">&nbsp;</a><a href="https://www.moneyhelper.org.uk/en/pensions-and-retirement/auto-enrolment/automatic-enrolment-an-introduction" target="_blank" data-sf-ec-immutable="">auto enrolment</a>.</p><p>The 2024 gender pensions gap report also shows that women are far more likely to take time out of work to care for an elderly or sick family member.</p><p>What is more, the fact that they’ll have worked less years throughout their life could also&nbsp;disqualify them from receiving a&nbsp;<a href="https://www.gov.uk/new-state-pension" data-sf-ec-immutable="">State Pension</a>. To get any State Pension, people in the UK are required to have worked for 10 qualifying years. To get the full State Pension, 35 qualifying years of work are required. The 2023 Women and Retirement report also says that often women take around 10-year career gap to shoulder caring responsibilities which poses a real risk of not qualifying for any state pension further down the line. You can check your&nbsp;<a href="https://www.gov.uk/check-state-pension" target="_blank" data-sf-ec-immutable="">State Pension forecast</a>&nbsp;on the government’s website.</p><p><strong>Working part-time</strong></p><p>Many parents, especially mothers, choose to work part-time to balance work and family. While this offers flexibility, it affects your pension.</p><p>If your working hours change it’s likely your wages will too. That means how much you pay into your pension may also change. The amount that you pay into your pension is worked out using your full-time rate of&nbsp;<a href="/knowledge-hub/help-and-support/glossary">Section Pay </a>for your job, but is reduced for the hours you work.</p><p>If you go part-time then you’re still entitled to the same range of benefits as your full-time colleagues. However, the amount you pay in and the amount you receive will be based on the part-time hours you work. You can find out more in the&nbsp;<a target="_blank" href="https://cdn3.railpen.com/mp-sitefinity-prod/docs/default-source/rayn/guides-for-active-(contributing)-members/guide-to-part-time-work166beabb5d844e31a0839a6ff1bb075b.pdf?sfvrsn=4d5472da_9">guide to part-time work</a>.</p><p><strong>The gender pay gap</strong></p><p>The gender pay gap – the difference between the earnings of men and women – is deemed one of the major drivers of the pension gap. Women have been earning (and still earn) less than men on average, although&nbsp;<a href="https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/earningsandworkinghours/bulletins/genderpaygapintheuk/2023" data-sf-ec-immutable="">2023 figures</a>&nbsp;show a narrowing of this gap over time. In April 2023, women earned an average of 7.7% less than men per hour according to the ONS.</p><p>The significant gap in income means women have less capacity to meet increasing financial demands. The 2023 Women and Retirement report, by Scottish Widows suggests that on average, women are paid 15% less per hour across all jobs in the UK. The report also highlights that only 59% of women aged 22-65 are saving into a private pension, compared to 71% of men, while 62% of men are also expecting to be able to draw from other long-term savings sources in retirement, compared to just 50% of women.</p><p>It’s not all doom and gloom for women, though. The 2024 pension gap report shows a positive tendency of more women undertaking higher education, and therefore entering the workforce with higher salaries. If the trend continues, the gender pay gap is likely to reduce further over the coming years, as more young women go on higher education. This could mean better retirement outcomes too.</p><p><strong>What to do make the most of your pension with the Scheme</strong></p><ul><li>Make sure you register for a myRPS account so you can take advantage of all the guidance and pension planning tools available to help you prepare for retirement.&nbsp;<a href="/login">Register and/or log in</a> and check your account today.</li><li>Don’t forget your national insurance credits. Many benefits, including child benefits, automatically give you NI credit. Some women don’t sign up for child benefit because if their partner earns over £50,000 they would have to start paying it back.&nbsp; But you don’t need to actually receive the cash – you can just sign up to ensure your NI record and then your State Pension will be protected.</li><li>You could consider extending your working life. Your Railways Pension Scheme pension will offer you a Normal Retirement Age (NRA) but normally you can work and remain a member beyond this date. <a href="/login">Log in to your myRPS</a> account to check what your NRA is.</li><li>Putting in a small, extra regular amount now into AVCs (Additional Voluntary Contributions), could go a long way towards a better future. You can put as little as £2 extra per week. This means you make the most of the valuable tax relief you get and the longer you have your money invested, the more chance it has to grow. If you’re a DB member of the RPS, the main AVC scheme is called&nbsp;<a href="/defined-benefit-members/saving-more-BRASS-AVC-Extra/saving-more-with-BRASS">BRASS</a>.&nbsp; For IWDC members, you can&nbsp;<a href="/iwdc-members/Im-still-working/saving-more">save more with AVCs</a>.</li><li>If you’ve had a number of different jobs, don’t forget to check that you’ve kept track of all your past pension schemes. The Pension Tracing Service is free and can help you find a pension you’ve lost. Go to&nbsp;<a href="https://www.gov.uk/find-pension-contact-details" target="_blank" data-sf-ec-immutable="">gov.uk/find-pension-contact-details</a>&nbsp;and follow the online steps.</li></ul>

<p>You and your employer both pay money into your pension while you’re an active member of the Railways Pension Scheme (RPS). That money is then invested for your future, and can have an impact on the world around you too.&nbsp;</p><p>Railpen is the company responsible for investments </p><p>While<a href="/knowledge-hub/the-trustee"> the Truste</a>e has overall responsibility for the Scheme and your money, they entrust a company called <a href="https://www.railpen.com/" target="_blank" data-sf-ec-immutable="">Railpen </a>to look after it and invest your pension contributions on the Scheme’s behalf. </p><p>This in itself won’t have a direct impact on how much you’ll get in retirement. But Railpen are tasked with investing your pension in a way that helps to ensure it can be paid securely, affordably and sustainably. </p><p>Railpen recognises this is a significant responsibility and strives to give members like you the best possible outcomes in retirement, while also having a positive impact on the world you will retire into. </p><h3>Your pension is invested for the long term</h3><p>An 18-year-old who joins the rail industry today may not retire for 40 or so years. By then the world is likely to be a very different place to the one we live in today. </p><p>With this in mind, Railpen takes a long-term and patient approach to investing. This also means it can access investment opportunities on your behalf that aren't always available to other pension schemes.  </p><h3><span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: &quot;Open Sans Condensed&quot;, sans-serif; font-size: var(--font-size-h3); font-weight: bold; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">Your pension is invested in different ways</span></h3><p>Railpen invests primarily in 2 ways. It invests in:</p><ul><li>financial assets</li><li>real assets</li></ul><p>In this context, an asset is something that has the potential to grow in value over time like stocks, bonds and property (we’ll get on to these shortly).</p><h3>Your pension is invested in financial assets</h3><p>Railpen invests in financial assets through both public and private market opportunities. </p><p>Think of the public market as a financial marketplace where companies (that have satisfied set criteria) can raise money by selling stocks to investors. Companies in the public market are also knows as ‘listed companies’ and almost anyone can purchase shares in them. </p><p>By contrast, private market investing (as the name suggests) doesn’t happen on a public exchange. Historically, private markets have been fairly exclusive but they are now much more accessible. </p><p>Public investors can buy and sell at any time, while private investments focus more on the long term.</p><h3>Your pension is also invested in real assets</h3><p>As well as financial assets, like stocks and bonds, your pension money is invested in areas like renewable energy, infrastructure, property investments and development in the UK, and others. These are called real assets.</p><p>These types of investments are fairly relatable because they are something we can see, hear, even touch in our day-to-day lives – like the houses we live in, where we go to work or shop and even solar farms that provide green energy to local communities. &nbsp;</p><p>Investing in real assets provides an opportunity for us to deliver attractive long-term returns for your pension. </p><h3>Railpen considers a range of factors when deciding where to invest your pension</h3><p>Before Railpen decides where to invest your pension, they consider a range of factors. Along with the potential for good returns, this also includes any environmental, social and governance (ESG) factors which present both risks and opportunities. </p><p>Put simply, ESG are a set of standards that are used in the world of investments to measure the following:</p><ul><li>A company’s impact on society</li><li>It’s impact on the environment</li><li>How credible and transparent its working practices are</li></ul><p>Railpen seeks to invest in companies that perform well against ESG factors to help us deliver investment returns for our members. But not only that, Railpen engages with and uses its influence to enhance the value of the money it invests on your behalf. </p><p>They also look for ways to have a positive impact on the communities in which your pension money is invested. This means that ultimately by saving for a pension with the Scheme, you are not only saving for your future, but you are also potentially helping to contribute to a better world, perhaps without even realising it.<br></p><h3>Find out more about where, and how, your pension is invested</h3><p>We’ll be going into more detail about how Railpen invests your pension money in forthcoming blogs, including a more detailed look at Real Assets and the company’s recent investments in Cambridge. </p><p>In the meantime, you can find out more in the investments section of the website and on Railpen’s own website using the links below. </p><ul><li><a href="https://member.railwayspensions.co.uk/knowledge-hub/investments" data-sf-ec-immutable="">RPS website – investments section</a></li><li><a href="https://www.railpen.com/investing/" data-sf-ec-immutable="">Railpen website – investing section</a></li></ul><p>You can also discover more about Railpen’s approach to sustainable investments in <a href="https://www.railpen.com/knowledge-hub/reports/stewardship-report-2023/" data-sf-ec-immutable="">Stewardship Report 2023 at Railpen.com</a>. A shortened version of this report, focussing on the areas members have said is important to them, will be released later this year. <a href="https://cdn-suk-railpencom-live-001.azureedge.net/media/media/34deiw1y/so-member-report-2022_final.pdf" data-sf-ec-immutable="">You can read the 2022 version here</a>.&nbsp;</p><div><div><div id="_com_1"><p>&nbsp;</p></div></div></div>

<blockquote><p>The Money and Pensions Service (MaPS) also say teaching children about money from a young age is a “game-changer” as it helps develop essential skills they’ll need as adults.</p></blockquote><p>Next week (10 – 14 June) will mark the 15^th consecutive year of <a href="https://www.young-enterprise.org.uk/teachers-hub/financial-education/financial-education-programmes/my-money-week/" target="_blank" data-sf-ec-immutable="" data-sf-marked="">My Money Week</a>&nbsp;in the UK – an annual event that aims to help children and young people aged 3 to 19 build healthy relationships with money. It also aims to get them interested in and excited about learning more about money and how to use it in their daily life. This would help them gain the financial skills, knowledge and confidence needed to be able to make sound financial decisions and to thrive as adults.<br></p><p>Here are a few things to consider if you’re a parent wanting to make money conversations part of your child’s learning journey:<br></p><h4>Think about introducing the concept of saving for a pension early</h4><p>Pensions form an integral part of &nbsp;financial education. Although it may be tricky for little children to understand the concept of saving for a pension, introducing it to teenagers can help them get familiar with it from an early age and set them off to a good start when they start working. <br></p><p>You could try initiating some&nbsp; conversations about pensions at home or asking older relatives in receipt of a pension to explain the concept, providing a realistic example with themselves. Talking openly and using real-life examples to help aid understanding may help your child to really understand the value of pension saving and to pick up the skills they will need in future.<br></p><p>It can be difficult to talk pensions especially if you feel that you don’t understand it well enough yourself. But it’s important to remember that you don’t need to be a pensions guru to help your children get their heads around the basics. A bit of prep work beforehand might help with keeping the conversation going on a regular basis. Keeping it simple and using everyday words might also help. The <a href="https://member.railwayspensions.co.uk/" data-sf-ec-immutable="">‘Pension essentials’ section</a> of this website may be a great starting point for this. &nbsp;<br></p><h4>Make learning about money habits part of daily life</h4><p>There are plenty of ways you could make learning about money part of your daily routine and enrich your child’s experiences by bringing money matters to life at home.<br></p><p>A simple example that a lot of parents perhaps do already is to give children a piggybank and to introduce saving to them that way.<br></p><p>It is recommended to introduce pocket money from a young age as well as a way to build habit and to teach considerate money spending and effective prioritising. This is closely linked to children being able to differentiate between needs and wants, essential spending and spending for pleasure i.e. paying the mortgage or the council tax is more important than treating the family to a meal out. It might help to make it relevant to their world and give examples with things they can relate to i.e. it’s more important to buy a new pair of shoes than a new car transporter or a new backpack, for example&nbsp;</p><p>It may also be helpful to get them involved in saving decisions so they can see how it works in practice i.e. we are saving for X so we’ll cut back on Y to make the money we need to be able to afford X. Older children may well be able to get their heads around interest and compounding too so it might be worth touching on these terms as part of their learning journey.<br></p><p>Another important information to consider passing on might be that money isn’t infinite and we need to make careful decisions about how and where we spend it. Bringing the concept of borrowing to their attention might be helpful too i.e. if you borrow money you have to pay it back.<br></p><p>Supporting children to build healthy relationships with money is a journey and takes time. Talking openly and practising in real life may help them grow up with the skills they need to manage their finances wisely as adults. <br></p><h4>Talk about the importance of staying vigilant to financial scams at all times</h4><p>Scams have proved to be a significant threat to our financial wellbeing in recent years. Many people choose to manage their finances purely online these days and this tendency is likely to evolve in the years to come. So it’s important to teach children about the warning signs of scams.<br></p><p>Older children using mobile phones and applications can be an easy target as they are likely to have less knowledge of the warning signs. It’s important they need are aware of the risks and build up their knowledge about what to look out for while online. <br></p><p>Government-backed support service MoneyHelper has said the main things to teach children to protect them from online scams are to: &nbsp;<br></p><ul><li>create strong passwords and have them share these with you</li><li>never share their personal details with anyone else or on websites</li><li>only use well-known apps, websites and games – watch out for fake</li><li>be cautious about opening links, especially if they’re from someone they’ve never met</li><li>beware - if it sounds too good to be true, then it probably is – and could be a scam</li><li>show you messages that are asking them for money – as these are likely to be scams.<br></li></ul><p>You can also set parental controls on their mobile phone and any devices that are connected to the internet. <br></p><h4>Tap into the resources available to help you talk money with children more effectively</h4><p>There is a lot of information and resources available online to help make money conversations easier for you and helpful to your child. We’ve listed some below but a simple Google search might help uncover some more if the ones below don’t suffice. <br></p><h3><strong>My Money Week resources</strong><br></h3><p><a href="https://www.young-enterprise.org.uk/teachers-hub/financial-education/financial-education-programmes/my-money-week/" target="_blank" data-sf-ec-immutable="">My Money Week campaign</a> offers free resources for children aged 3 to 19. You’d need to create a free account on their website to access them, though.<br></p><h3><strong>Talk Learn Do campaign resources by Money &amp; Pensions Service</strong> <br></h3><p><a href="https://maps.org.uk/en/our-work/talk-learn-do" target="_blank" data-sf-ec-immutable="" data-sf-marked="">Talk Learn Do</a>&nbsp;is a free tool aimed to help parents and carers teach children about money. It offers resource in different formats, including video, to help aid children’s understanding of money matters. <br></p><h3><strong>MoneyHelper talk money resources to help you talk money with family and friends</strong><br></h3><p><a href="https://www.moneyhelper.org.uk/en/family-and-care/talk-money" target="_blank" data-sf-ec-immutable="">MoneyHelper</a> offer a whole host of free information and resources to utilise. From articles on different money topics – to tools and calculators – to videos – the website is packed full of information to help you have effective money conversations with family and friends. <br></p><h3><strong>BBC Teach Class Clips</strong><br></h3><p>The <a href="https://www.bbc.co.uk/teach/class-clips-video/articles/zkh8cqt" target="_blank" data-sf-ec-immutable="">The clips</a> comprise 4 short films aimed at providing teenagers with a the information they need to be able to understand common money terms and concepts such as credit, debt, pension, interest and more.<br></p>

<p>It’s natural to feel apprehensive about planning for your future. Retirement is a huge life change, and with so much information in front of you it can be difficult to know where to start. </p><p>But even doing a small amount of planning for your life after work could improve the retirement outcome you get, and the retirement lifestyle you’re able to have. </p><p>Here’s why, and some of the other benefits of planning ahead:</p><h3>You’re likely to lead a better retirement lifestyle</h3><p>If you have a clear picture of the retirement you want, you’ll be more likely to achieve it. You wouldn’t get in your car without having a destination in mind, would you? And without an idea of where you’re going, you’d find it very difficult to plan your route, or think about what you’ll do when you get there. </p><p>The same goes for your retirement - a small amount of planning goes a long way. And when you start planning, you’ll be surprised at how quickly you start to build up a picture of your life after work. If you can picture the retirement lifestyle you want, it’ll be much easier to steer a clear course to get there.</p><h3>You can build up your financial confidence<strong> </strong></h3><p>If you have an idea of the retirement lifestyle you want, the chances are with that goal in mind you’ll make better financial decisions to reach it. </p><p>As you start to make better decisions, research shows you’re likely to feel more confident about your finances. And as time progresses you’ll gain more financial experience, and your financial knowledge is likely to grow as a result. Taking small steps with planning for life after work could really pay off in the long run.&nbsp;</p><h3>You may see a positive impact on your mental health</h3><p>Retirement is an enormous milestone, and it should be an exciting time. But if it’s causing you more worry than excitement you’re not alone. As the cost of living continues to soar, many of us are anxious about our finances. Doing a small amount of planning could be key to easing some of that anxiety.</p><p>Research proves that the more planning you do, the more comfortable you’re likely to feel about your future, and even your existing financial position. If the thought of retirement is causing you sleepless nights, knowing you’ve started making plans for your life after work could be an answer to getting your 8-hours rest. </p><p>To help you prepare for your future, read our simple guide to retirement planning <a href="https://member.railwayspensions.co.uk/knowledge-hub/news-and-views/blog/rps-blog/2024/05/15/your-step-by-step-guide-to-planning-ahead" data-sf-ec-immutable="">The power in preparing for your future part 1: Your step-by-step guide to planning ahead</a>.</p><h3>Help is at hand, if you need it</h3><p>You may want to take expert help before making any changes to your pension. Using an adviser can be expensive, so make sure you read all of the free information available at <a href="https://www.moneyhelper.org.uk/en" target="_blank" data-sf-ec-immutable="" data-sf-marked="">MoneyHelper</a> and <a href="https://www.gov.uk/" target="_blank" data-sf-ec-immutable="" data-sf-marked="">Gov.uk</a>.</p><p>If you’d like professional advice on your financial decisions, you might benefit from speaking to a financial adviser. In order to operate, financial advisers must be authorised by the <a href="https://www.fca.org.uk/" target="_blank" data-sf-ec-immutable="" data-sf-marked="">Financial Conduct Authority (FCA)</a>, so make sure you check who you’re dealing with.&nbsp;</p><p><a href="https://www.lv.com/pensions-retirement" data-sf-ec-immutable="">Liverpool Victoria</a>&nbsp;(LV) is the chosen partner to give Railways Pension Scheme members financial advice. LV is regulated by the FCA, covers all areas of pension and financial advice and has a dedicated team, with specific knowledge on the Scheme. You can <a href="https://member.railwayspensions.co.uk/pension-essentials/guidance-advice">learn more about LV on the ‘Guidance and advice’ page</a>. <br></p> <p>Your Railways Pension Scheme (RPS) member website is packed with helpful planning tips and useful information about your pension, <a href="https://member.railwayspensions.co.uk/pension-essentials/guidance-advice">including a list of trusted pension experts and professional advisers</a>.&nbsp;</p><p></p>

<p>Research shows that those who plan ahead for life after work are more likely to feel positive about their current and future financial situation. They’re also more likely to enjoy better retirement outcomes and experiences than those who don’t.* The more prepared you are for retirement, the more likely you are to lead a better retirement lifestyle as a result. </p><p>You can read about why planning ahead is so important, and learn why it might be beneficial for you to take financial advice in&nbsp;<a href="https://member.railwayspensions.co.uk/knowledge-hub/news-and-views/blog/rps-blog/2024/05/16/the-power-in-preparing-for-your-future-part-2" data-sf-ec-immutable="">The power in preparing for your future part 2: Why it’s so important to think ahead</a>.</p><p>As a member of the Railways Pension Scheme (RPS), you have access to a wide range of pension planning tools to support you on your planning journey. You’ll need a myRPS account to use the planning tools, so <a href="https://member.railwayspensions.co.uk/register" data-sf-ec-immutable="">make sure to register for one if you haven’t already</a>. &nbsp;<br></p><h3>How to plan ahead:</h3><p>If the thought of planning for retirement leaves you scratching your head, take a look at these 4 cost-free practical tips. </p><p>You could work through them one at a time over the course of a few weeks, breaking them down into manageable tasks. </p><ol><li><strong>Think about your current financial situation </strong><p>If other financial commitments are getting in the way of your retirement planning, you’re not alone. As the cost of living increases, statistics show that we’re having to fork out more money to pay for life’s essentials, which makes it more difficult to put money aside for your future. </p><p>If you find yourself tightening your purse strings, you might start by thinking about how you currently manage your money, beyond your pension. </p><p><a href="http://www.money-fit.co.uk/railpen" data-sf-ec-immutable="">MoneyFit</a> can help you with this – it’s a cost-free, simple tool which can help you take control of your financial wellbeing. It offers practical tips to manage your money, budget and possibly free up more to save for your life after work. MoneyFit is completely anonymous, and your results are tailored to your personal financial circumstances. You can try MoneyFit in the <a href="https://member.railwayspensions.co.uk/login" data-sf-ec-immutable="">‘Planning for the future’ section of your secure myRPS account</a>. </p><p>&nbsp;</p></li><li><strong>Work out how much income you might need</strong><p>It’s proven that if you have a target to aim for, you’re more likely to achieve your goal. And, the earlier you set your target, the more time you’ll have to achieve it. You could set your target by thinking about how much retirement income you’ll need to live the lifestyle you want. </p><p>To work out how much retirement income you might need, think about how much you’re likely to spend on essentials such as bills, rental or mortgage costs and medical expenses. You could also consider any other costs, such as holidays and hobbies. Write your expected costs down so you can refer back to them. To help you on your way, there’s a <a href="https://member.railwayspensions.co.uk/defined-benefit-members/Im-planning-to-take-my-pension/how-much-Ill-need" data-sf-ec-immutable="">general guide to retirement costs on the ‘How much I’ll need for retirement’ page</a>. </p><p>To get a personalised estimate of how much you might need when you retire, <a href="https://member.railwayspensions.co.uk/login" data-sf-ec-immutable="">try the Retirement Budgeting Calculator.</a> You can add your own individual costs to find out how much the lifestyle you hope for could cost each year. The total cost will give you a general target to aim for with your retirement income. </p><p><strong>&nbsp;</strong></p></li><li><strong>Think about how you’ll pay for your retirement</strong><p>It’s likely you’ll have several sources of income when you retire. This could include your RPS pension, your State Pension, other pensions and savings or investments. Find out what they’re each likely to be worth, and add them together to see how much you might have in total. </p><p>If you’ve ever changed jobs, it’s possible that your RPS pension is not your only workplace pension. By spending some time tracing your old pensions, you could recover pension money that might help to pay for your retirement lifestyle. You can <a href="https://www.gov.uk/find-pension-contact-details" target="_blank" data-sf-ec-immutable="" data-sf-marked="">find more information on tracing lost pensions at Gov.uk.</a> </p><p>Remember, the total amount of income you might have in retirement may change depending on your life expectancy, changes in the law such as tax allowances and rates of inflation. </p><p>You could then compare your total likely income with your income target from the Retirement Budgeting Calculator. </p><p>If the numbers don’t add up, there are a number of things you can do before you stop work. You might decide to:</p><ul><li>Top up your pension with <a href="https://member.railwayspensions.co.uk/pension-essentials/saving-more" data-sf-ec-immutable="">Additional Voluntary Contributions (AVCs)</a></li><li>Think about changing your retirement age, to delay taking your pension</li><li>Clear your debts before you retire<p>&nbsp;</p><p>If you’re a defined benefit (DB) member, you can learn more about the <a href="https://member.railwayspensions.co.uk/defined-benefit-members/Im-planning-to-take-my-pension/making-the-right-decision" data-sf-ec-immutable="">actions you can take if the numbers don’t add up on the ‘Making the right decision’ page</a>.</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">If you’re a defined contribution (DC) member, </span><a href="https://member.railwayspensions.co.uk/iwdc-members/im-planning-to-take-my-iwdc-pot/making-the-right-decision" data-sf-ec-immutable="" style="font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; white-space: inherit">visit the ‘Making the right decision’ page for DC members to learn more</a><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">.</span></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">&nbsp;</span></p></li></ul></li><li><strong>Experiment with the planning tools in your myRPS account</strong></li></ol><p>Your income from your RPS pension may change depending how and when you take your pension. Taking the time to understand your options could really pay off, as it could mean you’re able to afford a better retirement lifestyle.</p><ul><li>If you’re a <a href="https://member.railwayspensions.co.uk/login" data-sf-ec-immutable="">defined benefit (DB) member, try the Pension Planner in your myRPS account</a>. It shows what your annual income might be when you stop work, and how this might be affected by different ways of taking your pension. <a href="https://member.railwayspensions.co.uk/defined-benefit-members/Im-planning-to-take-my-pension/making-the-right-decision" data-sf-ec-immutable="">You can watch a short video on how to use it, and learn more about making the right decision for you here</a>.<strong></strong></li><li>If you’re a <a href="https://member.railwayspensions.co.uk/login" data-sf-ec-immutable="">defined contribution (DC) member, try the Retirement Modeller</a> to see what your pension pot might be worth when you retire, and the different ways you can choose to use that money. <a href="https://member.railwayspensions.co.uk/iwdc-members/im-planning-to-take-my-iwdc-pot/making-the-right-decision#:~:text=You%20can%20use%20the%20MoneyFit,pension%20pot%20for%20the%20future." data-sf-ec-immutable="">You can watch a video on how it works, and learn more about making the right decision for you here</a>.<strong></strong></li></ul><div><br clear="all"><div id="ftn1"><p>*Research by the Pensions Management Institute (PMI) and Standard Life</p></div></div>

<p>For today’s work life alumni, retirement has changed significantly since their parents’ day. There’s greater uncertainty about the future and new retirees are exposed to a greater choice about when and how to retire, or whether to retire at all. </p><p>Everyone’s circumstances are different. What’s true for many new retirees, though, is that stopping work can be a difficult transition. It’s about re-starting life at later age – it may sound exciting, almost adventurous, but research and word of mouth tell us it can be quite challenging and nerve-racking for some, especially for those retirement ‘freshers’ who don’t enjoy change as much. </p><p>This is why we’ve pulled together our top tips to help ease you into your retirement and enrich your experiences.</p><h3>Socialise!</h3><p><a href="https://www.cnbc.com/2023/03/10/85-year-harvard-happiness-study-found-the-biggest-downside-of-retirement-that-no-one-talks-about.html" target="_blank" data-sf-ec-immutable="" data-sf-marked="">An ongoing study by Harvard University</a>, found that the number one key to a happy life is ‘social fitness’. The most consistent finding the researchers reported on is that positive relationships keep us happier, healthier and help us live longer. The same study found that retirees don’t miss working, they miss the people. It said the number one challenge people face in retirement is not being able to cultivate and replace the social connections they had while they were working. </p><p>We are social creatures who thrive on companionship, but as we get older and our lives get busier, relationships can be difficult to maintain. As we all know, plants need watering to flourish, and so do our relationships. Here are a few ideas for you to consider if you think you might benefit from enriching your social life:</p><ul><li>Give old friends a call <p>It could’ve been 20 years, 10, or even 1, since you last got together and in the quieter moments, you may find yourself wondering about them. A recent study of more than 5,900 people found that people often underestimate how much old friends appreciate hearing from them. You could spend the rest of your lives creating new memories together. What’ve you got to lose? </p></li><li>Seek out exciting experiences with friends and partners <p>Think of your most spontaneous moments over the years. Maybe you hopped on a train with your best friend without checking the destination. Perhaps when you heard ‘I’ve had the time of my life’ at parties, everyone mistook you for Patrick Swayze. Make things exciting by trying new activities with friends and partners, things neither of you has done before. Mutual vulnerability opens new avenues for connection. </p></li><li>Take a walk with a friendly face <p>Research shows that 30 minutes of walking with another person boosts your mood, improves your health and staves off chronic conditions. Having a positive conversation with another person releases the feel-good hormone oxytocin. Coupled with the endorphins released by light exercise and nature’s gifts to the senses, you’ll anticipate your next walk before this one’s over.</p></li></ul><h3><span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit; font-size: inherit">Keep active and stay healthy</span></h3><p>It’s a myth that retirement is a passive stage of life. It’s actually quite the opposite for a lot of people but the key is proactivity – it’s up to you to make stuff happen and to stay physically and mentally sharp as you enter this new phase of life. </p><p><a href="https://www.mentalhealth.org.uk/our-work/public-engagement/mental-health-awareness-week" target="_blank" data-sf-ec-immutable="">Mental Health Awareness Week</a> (13 – 19 May) is to take place soon and this year’s theme is Movement: Moving more for our mental health. Staying active is scientifically proven to boost your mood, improve your sleep and your energy levels. Exercising looks different for everyone. It could be as simple as standing up from your chair regularly and walking between rooms, a 20-minute walk in the park to breathe in the fresh air, going for a run or doing a fitness class either at home or at the gym.</p><p>Research shows you’re more likely to stick to exercise if it’s part of your routine. You could walk to the shops instead of taking the bus, or join an exercise class. You might be surprised at how much healthier and happier you feel!</p><h3>Expand your horizons</h3><p>Life keeps evolving even when your working days are over. It might be that you may want to try a new hobby, or to pursue a passion you simply hadn’t had the time for so far, or it might be that you want to dedicate some of your time to charitable work and volunteering. Whatever route you go down, remember each new interest or activity can open doors and expand your horizons in unexpected ways.</p><p>Once you’re past the inevitable ‘honeymoon phase’ of retirement and you’ve ticked some quick wins you’ve been patiently waiting for while still working, a burst of boredom may strike. Use this quiet time for self-reflection. It presents a great opportunity to clarify your priorities, re-evaluate your lifestyle and sense of purpose, and think about what you may want to fill in your free time with. <br></p>

<p>The government recently announced that the State Pension will increase by 8.5%, under its commitment to the State Pension triple lock. The triple lock ensures that the State Pension doesn’t lose value over time. You can&nbsp;<a href="https://commonslibrary.parliament.uk/the-triple-lock-how-will-state-pensions-be-uprated-in-future/" target="_blank" data-sf-ec-immutable="">learn more about it here.</a></p><p>With the increase, you might be able to claim up to approximately £11,500 a year in State Pension from the government. </p><p>While that might <em>sound</em> like enough to help you get by, the reality is if you’re planning to live on the State Pension alone you may find yourself short of cash. </p><p>Here’s why the State Pension might not be enough for you to live on, and our top tips to help you save more for your life after work with your RPS pension, including <a href="https://member.railwayspensions.co.uk/pension-essentials/saving-more" data-sf-ec-immutable="">making Additional Voluntary Contributions (AVCs).</a></p><h4>&nbsp;</h4><h4>Why the State Pension might not be enough:</h4><h3>The cost of retirement is higher than ever</h3><p>The Pensions and Lifetime Savings Association (PLSA) has released their updated <a href="https://www.retirementlivingstandards.org.uk/" target="_blank" data-sf-ec-immutable="">Retirement Living Standards (RLS).</a>&nbsp;The RLS estimate how much you might need in retirement each year, based on 3 different standards of living – minimum, moderate and comfortable. </p><p>According to the RLS, a single person needs £14,400 to afford a ‘minimum’ standard of living. That means even if you’re able to claim the full amount of State Pension, you’ll be approximately £2,900 short of a minimum standard of living in retirement. And that’s without budgeting for any extra personal costs, such as mortgage or rental outgoings.</p><p>To get an idea of how much you might need <a href="https://member.railwayspensions.co.uk/login" data-sf-ec-immutable="">try the Retirement Budgeting Calculator in your myRPS account</a>. It’s based on the RLS and lets you add your personal lifestyle costs, including how many holidays you’d like per year, your motoring or transport costs and where you plan on living. <br></p><h3><br>You might not be able to claim the full amount of State Pension</h3><p>The amount of State Pension you’ll get depends on your National Insurance (NI) record. To claim the full amount of the State Pension, you’ll need 35 qualifying years of NI contributions or credits.* You can <a href="https://www.gov.uk/check-state-pension" target="_blank" data-sf-ec-immutable="">check your State Pension forecast at Gov.uk</a>. </p><p>If you’ve previously worked part-time, you might not have paid as many NI contributions or credits over the years. And, this could impact the amount of State Pension you might be able to claim later. </p><p>You may be able to ‘top up’ your NI record by paying voluntary contributions, if you’re eligible. You can <a href="https://www.gov.uk/voluntary-national-insurance-contributions" target="_blank" data-sf-ec-immutable="">learn more about Voluntary National Insurance at Gov.uk</a>.<br><br></p><h3>You'll need to wait until your State Pension age (SPA) to claim it<br></h3><p>You won’t be able to claim your State Pension until <a href="https://www.gov.uk/state-pension-age" target="_blank" data-sf-ec-immutable="">your State Pension age (SPA)</a>, which is currently age 66 for both men and women. </p><p>But, the SPA is set to increase again from May 2026. So, if you’re planning to retire before you reach your SPA, you’ll need to consider how you’ll pay for your retirement during that time.<br><br></p><h3>The State Pension is currently less than the National Minimum Wage<em></em></h3><p>In life after work, most of us would like to continue the lifestyle we’ve enjoyed while working. But, living off the State Pension alone might mean it’s difficult to maintain that standard of living. Here’s an example to explain why. &nbsp;</p><p>If, while you were working, you earned the National Minimum Wage and worked 35 hours per week, your yearly income would be approximately £19,000. </p><p>If you then reach State Pension Age (SPA), and are able to claim the full amount of State Pension from the government, your State Pension income would be approximately £11,500 a year. </p><p>Comparatively, your State Pension income would be roughly £7,500 less than the income you had while you were working. This could significantly impact the lifestyle you’re able to afford in retirement. What’s more, the difference could be even greater if you’re not able to claim the full amount of State Pension. <br><br></p><h3>Your State Pension might not increase if you live abroad</h3><p>Moving abroad to spend retirement under the sun is something many of us have dreamt about. While the idea of life after work in another country might capture your interest, it’s important to consider that your State Pension might not increase while you’re living there.</p><p>Currently, your State Pension will only increase each year if you live in:</p><ul><li>The&nbsp;<a href="https://www.gov.uk/eu-eea" target="_blank" data-sf-ec-immutable="">European Economic Area (EEA)</a></li></ul><ul><li>Gibraltar</li></ul><ul><li>Switzerland</li></ul><ul><li><a href="https://www.gov.uk/government/publications/state-pensions-annual-increases-if-you-live-abroad/countries-where-we-pay-an-annual-increase-in-the-state-pension" target="_blank" data-sf-ec-immutable="">Countries that have a social security agreement with the UK</a>&nbsp;(but you cannot get increases in Canada or New Zealand)</li></ul><p>You will not get yearly State Pension increases if you live outside these countries. However, your State Pension will go up to the current rate if you move back to the UK. </p><p>You can learn more about how your State pension is affected, including how you can claim it if you move abroad at <a href="https://www.gov.uk/state-pension-if-you-retire-abroad/rates-of-state-pension" target="_blank" data-sf-ec-immutable="">Gov.uk</a>. </p><h4>&nbsp;</h4><h4>How you could save more:</h4><p>As a member of the Railways Pension Scheme (RPS), you’re already saving towards a retirement income which you’ll get separate to your State Pension.</p><p>You can find out how much you might get from your RPS pension by using the <a href="https://member.railwayspensions.co.uk/login" data-sf-ec-immutable="">pension planning tools in your myRPS account.</a></p><p>Here’s how being part of the RPS is already helping you save towards your retirement, and how you could save even more for your future…</p><h3><br>You’re increasing your savings with tax relief</h3><p>A fantastic thing about saving with your RPS pension is that its tax efficient, because the money you pay in is taken from your salary before tax is deducted. This means you pay less tax on your salary. Over the years this can add up to a substantial amount.</p><p>The amount of tax relief you get depends on the rate of income tax you pay. Basic-rate taxpayers (who pay 20% income tax) get tax relief at the same rate. If you’re a higher-rate taxpayer you get 40% tax relief, and additional-rate taxpayers get 45%.</p><p>For example, if you’re a basic-rate tax payer (who pays 20% income tax) and put £100 into your pension, it would actually only cost you £80. That’s because the other £20 comes from tax relief.</p><p>You can pay in as much money as you want into your pension, but there’s limits on the amount of pension savings that benefit from tax relief each year, before you have to pay tax. You can <a href="https://member.railwayspensions.co.uk/pension-essentials/pension-tax-limits" data-sf-ec-immutable="">learn about the limits, and watch a short video on how tax relief works on the Pension tax limits page</a>. <br><br></p><h3>You can pay more in with Additional Voluntary Contributions (AVCs)</h3><p>‘Topping up’ your pension with AVCs could help pay for your life after work. AVCs are extra contributions you pay into the Scheme, on top of the regular contributions you and your employer pay in while you’re working. </p><p>AVCs might help you save more, particularly if you’re thinking about taking your pension early, or before your State Pension Age (SPA).&nbsp; &nbsp;</p><p>You can pay in as little as £2 a week, and you can make one-off payments if you wish. If you earn extra money like overtime or bonuses, or if you receive a monetary gift, paying it into AVCs is an excellent way to boost your potential retirement savings. Plus, you get tax relief on the money you pay in, up to certain limits. </p><p>If you want to start paying AVCs, you should speak to your employer. Here’s where you can find more information:</p><ul><li>If you’re a defined benefit (DB) member, the main AVC arrangement is called BRASS. <a href="https://member.railwayspensions.co.uk/defined-benefit-members/saving-more-BRASS-AVC-Extra/saving-more-with-BRASS" data-sf-ec-immutable="">Visit the Saving more with BRASS page to find out more</a>. &nbsp;</li><li>If you’re an IWDC member, you can save more by paying more contributions. <a href="https://member.railwayspensions.co.uk/iwdc-members/Im-still-working/saving-more" data-sf-ec-immutable="">Visit the Saving more with Additional Voluntary Contributions (AVCs) to learn more</a>.</li></ul><p>The <a href="https://member.railwayspensions.co.uk/login" data-sf-ec-immutable="">MoneyFit tool in your myRPS account</a> can help you manage your money, and offer helpful tips to possibly free-up a little more to contribute to your pension savings.<br><br></p><h3>You can take control of your pension and plan for the future </h3><p>You can see how much your RPS pension might be worth when you retire using the pension planning tools in your secure myRPS account. If you haven’t already, <a href="https://member.railwayspensions.co.uk/register" data-sf-ec-immutable="">you can register for your myRPS account here</a>. </p><p>With an online account, you can request an estimate of your pension benefits quickly and easily. This will give you an idea of what your RPS pension might be worth, based on your current pension payments. </p><p>You can then try the pension planning tools in your account to see how saving more might make a difference to your retirement savings. Using the planning tools you can adjust the amount you pay in, and see how contributing more with AVCs could boost your savings. </p><ul><li>Defined Benefit (DB) members can use the Pension Planner tool.</li><li>Industry-Wide Defined Contribution (IWDC) members can use the Retirement Modeller.</li></ul><p>&nbsp;</p><p>*<em>Figures correct as at April 2024, but may be subject to change. Full details can be found at </em> <a href="https://www.gov.uk/new-state-pension/what-youll-get" target="_blank" data-sf-ec-immutable="" data-sf-marked=""><em>gov.uk/new-state-pension/what-youll-get</em></a><em>.</em></p>

<p>Before we get to the ‘G’, let’s break down what ‘ESG’ stands for: economic, social and governance (ESG). It is the role of the Sustainable Ownership team at Railpen (the investment manager of the Scheme) to understand which ESG issues are most likely to have an impact on the financial performance of the companies your pension is invested in, and to improve companies’ behaviour in this respect. <br></p><p>Although some people think of ‘E’ or ‘S’ issues such as climate change or workforce treatment when they hear the term ‘ESG’, the ‘G’ is perhaps one of the most important issues for the companies we invest in to get right. This is because the good governance of a company is foundational to its long-term success and prosperity.&nbsp; And this is what this blog will focus on. <br></p><p>Interestingly, in January 2024, many of you said that governance – how well the companies your pension is invested in are being run – continues to matter the most to you. You also said you trust our judgement and want us to use our influence to encourage positive change in those companies. Railpen will continue to provide regular updates to members on their work in this area.<br></p><h3>Corporate governance and your pension<br></h3><p>In the world of pensions, corporate governance is all about making sure the companies we invest our members’ retirement income in are: <br></p><ul><li>led by a diverse group of people with the right expertise and experience</li><li>supported by robust systems and processes, and are </li><li>influenced by the perspectives of their shareholders (like Railpen)<br></li></ul><p>Good corporate governance can be subjective depending on the purpose of a business. In its most straightforward meaning, it refers to the people at the top doing a good job across all aspects of managing the company while being supported by the right kinds of systems and processes across the organisation. <br></p><p>Whether a company is well-run is one of the most important factors in whether it performs well. Railpen wants the companies it chooses to invest in to do (very) well because this has a direct impact on the return on the investment they’ve made, and ultimately on members’ retirement outcomes. <br></p><p>This is why Railpen has a strong focus on governance and strives to ensure the businesses it chooses to invest in have a healthy culture and strong processes at every level. It tries to influence companies to do better through using some of the wide variety of tools we have at our disposal. These include:<br></p><ul><li>Using its voting power at company meetings (Annual General Meeting – AGM) to publicly escalate concerns when insufficient action is being taken in relation to governance-related issues.</li><li>Regular, open conversations with companies and supporting them to address the issues they are facing. </li><li>Advocating for change if they believe certain tweaks need to be made to laws and regulations to support companies and individuals to make sustainable choices.</li><li>Sanctioning companies through ‘divestment’ or choosing to remove them their investment portfolio. Railpen would take this step if we are not noticing the positive change in their actions and behaviour we were hoping to see. <br></li></ul><h3>Driving meaningful change for better financial outcomes for members</h3><p>We’ve highlighted above that one of the ways the Scheme’s investment manager can influence companies to improve corporate behaviour is by voting at their AGMs. Being able to vote for or against a company at its AGM ensures they can publicly hold company management to account. So, it’s essential that all shareholders are given a fair and proportionate voice.</p><p>Recently, Railpen had found that this wasn’t the case for some of the companies it invests in. It identified that some investees (shareholders) have more and stronger voting rights than others (unequal voting rights) which could potentially harm member outcomes. </p><p>To minimise the risk for members, in 2022 Railpen co-founded, and now chairs, the Investor Coalition for <a href="https://www.railpen.com/knowledge-hub/our-thinking/2023/icev-one-share-one-vote/" target="_blank" data-sf-ec-immutable="">Investor Coalition for Equal Votes (ICEV)</a>Equal Votes (ICEV) with the Council of Institutional Investors (CII) to tackle the issue in a different way. ICEV’s efforts focus on engaging with companies early in their existence - when they are still open to conversations and have the ability to make changes to the way in which they structure voting rights. The Coalition also engages with advisers, policymakers, commentators and the market to initiate changes that’d ultimately lead to improved financial outcomes for members. </p><p>Since its launch ICEV has achieved considerable progress including growing its pension assets to $3tn, influencing advisers to change their advice to their company clients and, ultimately, encouraging companies to give all their shareholders an equal say in how they are run. In 2024, we will continue to engage with early-stage companies, using the findings of our recent research paper <em>Undermining the Shareholder Voice</em> to help make our case for equal voting rights.</p><h3>Broaden your knowledge of corporate governance and Railpen’s work in this area</h3><p>Find out more about Railpen’s engagement and voting priorities, including how it takes voting decisions at companies’ AGMs that are in the best interest of members, in the 2024 Global <a href="https://cdn-suk-railpencom-live-001.azureedge.net/media/media/3dsbs2tm/voting-policy-2024.pdf" target="_blank" data-sf-ec-immutable="">2024 Global Voting Policy</a> Policy. Our priorities reflect what we consider to be good corporate governance and how well companies are managed. </p><p>Discover more about the work of the ICEV with the:</p><ul><li>ICEV Report<a href="https://cdn-suk-railpencom-live-001.azureedge.net/media/media/55reei4u/icev-report-2023-undermining-the-shareholder-voice.pdf" target="_blank" data-sf-ec-immutable="">ICEV Report 2023</a> 2023 </li><li>ICEV Executive <a href="https://cdn-suk-railpencom-live-001.azureedge.net/media/media/ciblcg4q/icev-2023-executive-summary-undermining-the-shareholder-voice.pdf" target="_blank" data-sf-ec-immutable="">ICEV Executive Summary</a>, and the </li><li>ICEV Investor <a href="https://cdn-suk-railpencom-live-001.azureedge.net/media/media/xtupqlv3/icev-2023-investor-statement-undermining-the-shareholder-voice.pdf" target="_blank" data-sf-ec-immutable="">ICEV Investor Statement</a></li></ul>