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<p>By the time you reach your 50s you may have a pretty good idea of what you want later life to look like for you. Retirement doesn’t probably feel like a distant concept anymore and you’re starting to give it a lot more thought these days.&nbsp;<br></p><p>If you’re only just embarking on your pension saving journey, you still have a good few years to prioritise retirement planning and to save up for a decent life after work. <br></p><p>Whatever your situation, your 50s is the ideal time to up your saving game and to make the most of the opportunities available to you. Here are a few ideas to help you enhance your pension saving journey and to make sure your retirement savings are on track to provide you with the sort of lifestyle you hope for when you stop work.</p><p>&nbsp;</p><h3>Define your retirement goals<br></h3><p>If you haven’t yet given later life a thought, do it now. How do you imagine your lifestyle? You’d probably want to enjoy some treats now and then like a holiday abroad, meals out and taking up new hobbies. Will you have any caring responsibilities or will you want to support a family member financially? <br></p><p>Crystallising your retirement goals now you still have a few years to save up may be just what you need to ensure you have enough to fund them when the time comes. <br></p><p><a href="https://www.retirementlivingstandards.org.uk/" data-sf-ec-immutable="">The Retirement Living Standards</a>* can help you with that. They have been developed to help you picture what kind of lifestyle you could have in retirement. The standards show you what life in retirement looks like at 3 different levels, and what a range of common goods and services would cost for each level. For example, a single person will need approximately £37,300 per year for a comfortable standard of living when they finish work. <br></p><p>If your current level of saving isn’t on target to pay for the standard of living you hope for in retirement, you may need to think about saving more. One way to do this is by paying Additional Voluntary Contributions (AVCs).</p><p>&nbsp;</p><h3>Consider boosting your savings with AVCs<br></h3><p>You may want to consider paying extra into your pension, if you can. Paying even a little more in to your pension savings now could eventually add up to a lot more to enjoy when you stop work. AVCs provide a real opportunity to build up your savings and make up for lost time.<br></p><p>The main <a href="/defined-benefit-members/saving-more-BRASS-AVC-Extra">AVC arrangement for defined benefit (DB) members</a> of the Railways Pension Scheme is called BRASS. You can pay as little as £2 per week or £10 per month on top of the normal contributions you make to your pension. 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, you can join AVC Extra (not available to Network Rail members). <br></p><p><a href="/iwdc-members/Im-still-working/saving-more">Defined contribution (IWDC) members pay AVCs</a> directly into their investment accounts. <br></p><p>There are many benefits to saving extra with AVCs:<br></p><ul><li>you can save as little as £2 a week</li><li>you don’t need to save a set amount every month</li><li>you can pay into AVCs with money from overtime and bonuses, which don’t qualify for your main scheme pension</li><li>you get tax relief on what you put in (up to Annual Allowance tax limits)<br></li></ul><p>To see how much your RPS income will be, log in to (or register for) your <a href="https://member.railwayspensions.co.uk/login" data-sf-ec-immutable="" data-sf-marked="">myRPS account</a>. Use the ‘Pension Planner’ to model how saving more with BRASS could make a big difference and help you meet your target. <br></p><p>You should also bear in mind that for the 2023-24 tax year there’s an annual pension savings limit that can benefit from tax relief of £60,000 or the value of your taxable earnings, whichever is lower. Read more about this limit below.</p><p><br></p><h3>Are you making the most of your Annual Allowance?</h3><p>Annual Allowance is the limit on the total amount you can save towards your pension in a single tax year before you pay any tax on your pension savings. It is currently either 100% of your annual earnings or £60,000, whichever is lower, unless the Tapered Annual Allowance** applies to you.</p><p>The Annual Allowance renews at the start of every financial year (in April) so it may be worth paying in as much as you can over the next few years to make sure your savings are benefitting from tax relief. Saving tax free for your future is one of the most valuable benefits of paying in a workplace pension and it’s worth taking advantage of all the pros that come with it. That doesn’t mean paying in the full allowance, but paying in as much as is realistic and possible for you at this moment in time. </p><p>You may also be able to carry forward any unused allowances from the last three years.</p><p>&nbsp;</p><h3>Your pension savings are invested so compounding is a big plus!<br></h3><p>We’ve covered compounding in previous articles from the pension planning series but we can’t miss to highlight its valuable role in making your money grow, especially now you’re approaching the end of your working life. It’s a key factor when it comes to investing and one of the most significant benefits of having your money invested in a pension. <br></p><p>It is essentially the process of your investments achieving growth not just on the original sum invested but on the growth of it as well. It’s especially powerful if your money has been invested for a while but even if you start saving for a pension now, it will help your money grow. <br></p><p>Compounding only applies to members in the Industry-Wide Defined Contribution (IWDC) scheme and members who pay in Additional Voluntary Contributions (AVCs) towards their pension.</p><p><br></p><h3>Re-evaluate your attitude to risk<br></h3><p>If you’ve been saving into an IWDC pot or with AVCs for a while, you may want to consider reviewing your investment fund choices now you’re on a down track to retirement. You may have had a riskier approach so far, but it’s perhaps time to reduce your exposure to higher risk funds to ensure you’re not taking any unnecessary risks. The value of money invested can go up as well as down so it’s important to ensure the savings you’ve accumulated to date are ‘safer’ being invested in more ‘stable’ funds which have lower risk of losing value over time.</p><p><br></p><h3>Turn to Pension Wise for free guidance<br></h3><p>Pension Wise, a government-backed service helping people to understand the pension options available to them, offers free, impartial guidance for over 50s. You can book an hour-long appointment with one of their pensions specialists and they’ll talk you through the options available to you and any other things you may need to keep in mind in the run up to retirement.</p><p><br></p><h3>Speak to a financial adviser <br></h3><p>You may want to seek expert financial advice if you have little or no experience of managing your pension and extended finances and don’t feel confident in making decisions about them. Go to <a href="https://www.unbiased.co.uk/" data-sf-ec-immutable="">https://www.unbiased.co.uk/</a> to find an Independent Financial Adviser (IFA) who could help you take control of your financial future.</p><p>&nbsp;</p><p><br></p><p><em>*Retirement Living Standards – the Standards have been developed by the People and Lifetime Savings Association (PLSA) and provide a rule of thumb guidance on common costs for three different levels of expenditure in retirement to help pension savers understand how much money they will need to live the lifestyle they want in retirement <a href="https://www.retirementlivingstandards.org.uk/" data-sf-ec-immutable="">https://www.retirementlivingstandards.org.uk/</a> </em><br></p><em></em><p><em>**Tapered Annual Allowance - the Tapered Annual Allowance (TAA) generally applies to those on the highest incomes. This allowance gradually reduces the amount you can save into your pension plan annually depending on your income.&nbsp;It may affect you if your income is over £260,000 (previously £240,000) from 6 April 2023.</em></p>

<p>If that’s the case for you, now may be the time to up your saving game and to prioritise your pension over all other things your money could be going towards.</p><p>Here are a few thoughts around pension saving in your 40s that could help you stay focused on your journey and make the most out of perhaps the most financially rewarding time of your career.</p><p>&nbsp;</p><h3>Prioritising saving for later life</h3><p>A recent research by Standard Life* which sampled UK adults aged 18 to 80 found that 72% of people surveyed do little or no retirement planning while 78% hope for certainty of income in retirement. There’s a clear disproportion between carrying overly optimistic expectations about retirement and doing very little or no preparation at all now in order to be able to meet those expectations. Don’t be the statistic and act now to be able to afford the retirement you hope for.</p><p>Now you’ve got a few financial milestones behind your back and have a bit more freedom to fund your own wants and needs, why not think about your future self and make the most of the saving opportunities you have. It may be tempting to spend your disposable income on exotic holidays or investing in property, but is this going to help you have a decent life in retirement? </p><p>You can’t borrow for retirement and you can’t make more of time so it’s important to focus on saving for later life now you can afford to invest more in your pension. Do it now and you’ll thank yourself later when your working days are over and you’re living an enjoyable life thanks to the sacrifice you’ve made previously.</p><p>With the Railways Pension Scheme, you can save extra towards your pension if you want to. You could do this by paying in Additional Voluntary Contributions (AVCs). AVCs are a great way to save tax-free either by giving your pension a one off boost or making regular additional payments towards it. </p><p><a href="/pension-essentials/saving-more">More on AVCs is available on our website.</a></p><p>&nbsp;</p><h3>Compounding is still a key factor</h3><p>Compounding – the effect of money invested achieving growth on the growth they’ve achieved initially, not just on the original sum invested - continues to be a great helper when it comes to saving for later life. It’s a very powerful positive of having your money invested for a long period of time as the longer it’s been invested, the longer it has to grow.</p><p>If you’ve started saving for later life in your 20s, you’ve probably managed to build up a sizeable nest egg by now. Thanks to compounding, you’ll probably continue to benefit from further growth on your savings, not just from the money you keep paying in but from the compounding effect on it as well.</p><p>Read more about compounding in our previous blogs in the pension planning series below.<br></p><p>&nbsp;</p><h3>Have you accumulated a few different pension pots over the years? </h3><p>You’ve probably been saving for retirement for a couple of decades now and it’s likely you’ve built up a few pension pots over the years. While in your 40s, you’re in the middle of your saving journey and now might be the perfect time to take stock of what you have. &nbsp;</p><p>If you think you've lost track of a pension, you may want to turn to the&nbsp;<a href="https://www.pensiontracingservice.com/" target="_blank" data-sf-ec-immutable="">Pension Tracing Service</a>&nbsp;for help. It's a free, impartial service to help find your lost pensions and then offer guidance on what to do with them.</p><p>You may also want to consider starting a pension planner and keeping track of how your different pots are performing. You may also benefit from seeking independent financial advice. Go to&nbsp;<a href="https://www.unbiased.co.uk/" data-sf-ec-immutable="">https://www.unbiased.co.uk/</a>&nbsp;to find an independent adviser from a trusted source.&nbsp; </p><p>If you’ve previously worked for another employer within the rail industry and were a member of that Section of the RPS, you may be able to transfer those benefits into your new employer’s Section of the RPS. </p><p>However if you’ve built up pension benefits in another pension scheme, you may not be able to transfer these into the RPS. This will depend on your employer’s policy, so you may need to discuss with them.</p><p>More on transferring is available in your Member Guide, which is available in ‘My Library’ when you log into your <a href="/my-rps">myRPS account</a>.</p><p>If you haven’t really given retirement a thought yet, there’s still time to start saving and make a big difference to your financial future.</p><p>---</p><p>*Retirement Voice 2022, Exploring how retirement attitudes and experiences are changing by Standard Life&nbsp;</p>

<p>If you're thinking about moving abroad permanently or buying a second home outside of the UK, read on for the details you need to know.</p><p><strong>You can have your pension paid into an overseas bank account</strong><strong> </strong></p><p>If you’re changing from a UK bank account to an overseas bank, it’s important to make sure your details, and the details of your new chosen bank are correct. </p><p>Once you’ve registered with your chosen bank, the best way for us to verify the bank and your details is through you obtaining and sending us a bank statement from your new bank. When we receive this, we’ll send it to Citibank, the company we use to exchange your pension into your new country’s currency, and they’ll be able to vet this new bank quickly. This will speed up the process of getting your pension to your new bank account.</p><p>If you’ve got an overseas bank account, it costs £2 a month (£26 per year from us), which we’ll offset by getting a good exchange rate through Citibank. You’ll need to check with the overseas bank if there’s a charge for receiving an overseas payment.</p><p><strong>Can you still use a UK bank account to receive your pension? </strong></p><p>If you plan on keeping your UK bank account, we’ll pay you in the same way as if you were living in the UK. However, it’s important to check you can maintain a UK bank account without a UK address and that will depend on your current UK bank. </p><p>If you’re closing your UK bank account, you’ll need to <a href="http://member.railwayspensions.co.uk/defined-benefit-members/Im-taking-my-pension/updating-bank-details" data-sf-ec-immutable="">complete a form with the details of your overseas bank</a>.</p><p><strong>If you’re thinking of transferring to a scheme overseas…</strong></p><p>Transferring can take a couple of days because of the additional process. You can find more information about transfers <a href="https://cdn.rpmi.co.uk/mp-sitefinity-prod/docs/default-source/rayn/guides-for-all-members/transfer-options.pdf?sfvrsn=54d41644_7" data-sf-ec-immutable="" data-sf-marked="" target="_blank"><strong>here</strong></a><strong>.</strong></p><p><strong>You’ll still receive written correspondence from us</strong></p><p>Pension documents will still be sent to you overseas, such as your:<strong></strong></p><ul><li>Annual Benefit Statement (ABS) </li><li>Summary Funding Statement (SFS)</li><li>Pension saving statement</li><li>Newsletters</li></ul><p>In some countries, the postal service may take longer for you to receive your documents for us, so it’s important that you research this. However, by <a href="http://member.railwayspensions.co.uk/register" data-sf-ec-immutable="">registering for your myRPS account</a>, you can access all your important pension documents online.</p><p>We’re currently exploring giving members the option of opting out of paper communications and will update you with our progress. </p><p><strong>Impact on cost of living increases to State Pension if you’re over State Pension age</strong> </p><p>With certain countries, your UK State Pension will be fixed and you may not receive any cost of living increases to it.</p><p>Further information about the State Pension if you retire abroad is available on the <strong>Gov.uk</strong> website at &nbsp;<strong><a href="https://www.gov.uk/state-pension-if-you-retire-abroad" data-sf-ec-immutable="">gov.uk/state-pension-if-you-retire-abroad</a></strong>.<br></p>

<p>Pension scams are extremely dangerous as they can come in lots of guises, they are savvy and creative, and would do anything to part pension savers with their money. Here’s an example of one scenario to help illustrate what a real-life case may look like – from the victim’s thought process, to his touchpoints with the scammer – to him losing all of his retirement income. <br></p><h4>Michael's story</h4><p>Michael has retired recently and still has the best part of his pension lump sum sitting in his bank account. Michael has had a successful career and has held senior roles for the past 25 years. He’s also been saving extra towards his pension by paying additional voluntary contributions. Michael has got quite a lot of money in his bank account at present. <br></p><p>One morning, while having a coffee and scrolling on his tablet, Michael receives an email from an investment company prompting him to invest in their offshore renewable energy bonds. The sender – the company’s Chief Financial Officer – is promising Michael big returns on his investment, as well as some extra perks for being an investor such free exotic getaways for him and his wife Anne.</p><p><br></p><p><strong>Michael</strong>: I think I just received an offer I can’t say ‘no’ to. You know all that money I have sitting in the bank, imagine doubling or even tripling it by simply investing it. </p><p><strong>Anne</strong>: How do you know the offer is genuine? I think you should speak to someone before you decide to invest it all. </p><p><strong>Michael</strong>: Of course it’s genuine. I can recognise a scam from miles away and this is definitely a perfectly legitimate email. It comes from a real person whom you can contact back, it has a disclaimer on the bottom that mentions the FCA and they’ve even made the effort to find out more information about me such as my name, age and that I’m now a pensioner.</p><p><strong>Anne</strong>: Okay then, it’s your call.</p><p>&nbsp;</p><p>Michael decides to call the sender of the email and has a long chat with them about their offer. They sound very professional and trustworthy, they use all the right financial jargon, and they give lots of advice and reassurance that Michael will get a huge payback. <br></p><p>Eventually, he transfers all of his hard-earned retirement savings, thinking he’s investing it for high returns. Instead, Michael never hears back from the sender nor does he receive a penny, never mind the high returns on his ‘investment’ he was expecting. <br></p><p>The financial impacts on him and his family are tremendous. What is worse is that Michael develops emotional distress and anxiety. His health and quality of life are hugely impacted and Michael’s plans for a happy and relaxed retirement are truly ruined.<br></p><p>&nbsp;</p><h4>Older people are at a high risk<br></h4><p>Scenarios like this are happening every single day in the UK. Pensioners and older people are at a high risk of falling victim to sophisticated scams. They get savvier and savvier in their use of different means to achieve their mission to part retirees with their pension. Just because you’ve started taking your pension doesn’t mean you’re protected from the threat. <br></p><p>No matter how good it sounds, you must do your own research and strongly consider speaking to a financial adviser before you make any important decisions about your money. Generally, if it sounds too good to be true, it probably is, so you must be on your guard. &nbsp;&nbsp;</p><p>&nbsp;</p><h4>How to protect yourself<br></h4><ul><li>Always reject unexpected offers</li><li>Never make rushed decisions about your money </li><li>Be very wary if you’re offered a free pension review</li><li>Do your own research of anyone offering financial advice – check the <a href="https://www.fca.org.uk/" target="_blank" data-sf-ec-immutable="">Financial Conduct Authority (FCA)</a> register at fca.org.uk or call 0800 111 6768 to make sure that they are FCA-authorised.<br></li></ul><p>Suspicious? Visit <a href="https://www.fca.org.uk/scamsmart" target="_blank" data-sf-ec-immutable="">fca.org.uk/scamsmart</a>, or call <a href="https://maps.org.uk/" target="_blank" data-sf-ec-immutable="">The Money and Pensions Service (MaPS)</a> on 0800 138 7777 for free pensions guidance and information.&nbsp;</p><p>If you think you've been scammed call <a href="https://www.actionfraud.police.uk/" target="_blank" data-sf-ec-immutable="">Action Fraud</a> on 0300 123 2040 to report it. </p><p>You can also contact <a href="https://www.moneyhelper.org.uk/en" target="_blank" data-sf-ec-immutable="">MoneyHelper</a> on 0800 015 4402 and ask to speak to pensions specialist about how you might be able to rebuild your pension, to review your State Pension and to trace any other pensions you may have bit have lost touch with.&nbsp;</p>

<p>In sport, if you train well you’re more likely to succeed on match day. It’s the same with your retirement. The more preparation you do, the more likely you’ll be able to enjoy the life you hope for when you stop work. </p> <p>So what are you waiting for? These 10-minute tasks will help you manage your pension during half-time.<br> <br> </p> <h3><strong>Register for your personal myRPS account</strong></h3> <p>Get a head start on planning for your future with your myRPS account. If you haven’t already,&nbsp;<a href="https://member.railwayspensions.co.uk/register">register for a myRPS account</a>&nbsp;to make the most of your membership. &nbsp;Over 100,000 of our members are already registered online, you don’t want to miss out! </p> <p>With an online account you can:</p> <ul> <li>Use our tools and modellers to plan ahead for life after work and picture your retirement goal</li> <li>Make a nomination to tell us where you’d like any cash payment to go if you die before you take your pension</li> <li>Make Additional Voluntary Contributions (AVCs)</li> <li>Check or <a href="https://member.railwayspensions.co.uk/defined-benefit-members/saving-more-BRASS-AVC-Extra/how-investments-work">change any funds you invest in</a> if you pay in AVCs, or if you’re a member of the Industry-Wide Defined Contribution Section </li> <li>Find your Member Guide, which explains the fantastic benefits of your Scheme membership and how it works in more detail</li> </ul> <p>… and plenty more to help you stay ahead of the game.<br> <br> </p> <h3><strong>Find helpful guides and information on your member website</strong></h3> <p>Your member website is packed with information to help you stay on the ball with your retirement planning. </p> <p>We’ve recently improved your website and given it a fresh new look. It’s now quicker and easier than ever to find the information you’re looking for online. </p> <p>On your website there’s valuable guidance to help you understand how and when to take your pension, including:</p> <ul> <li>How much you’ll need for retirement</li> <li>How to save more</li> <li>When to retire</li> <li>Ways to take your pension</li> <li>How to apply for your pension</li> </ul> <p>There’s also handy guides on pension topics to help you give planning for life after work your best shot.<br> <br> </p> <h3><strong>Check out our new YouTube channel</strong></h3> <p>On <a href="https://www.youtube.com/@railwayspensionscheme/videos" target="_blank">our YouTube channel</a>&nbsp;you’ll find a range of informative videos to help you get to grips with your pension, all in one place.</p> <p>Our videos break down complex pension topics into bite-size chunks to make them easy to tackle. All are around 5 minutes long, so if half-time lasts 15 minutes, you could watch 3 videos and have time to grab a coffee before the game restarts. </p> <p>We have videos on over 20 pension-related topics. You’ll also find playlists on:</p> <ul> <li>How to use the RPS website</li> <li>Planning for retirement </li> <li>Saving more for life after work</li> <li>Tax and how it might affect your pension</li> <li>New joiners </li> </ul> <p>As with your myRPS account, you can access our YouTube channel wherever and whenever you need to. </p> <p>If you don’t have time to watch the entire playlist at once, you can pause, play and replay the videos at your leisure. So you don’t need to worry about missing the match!<br> <br> </p> <h3><strong>Got a question about your pension? Ask our Virtual Assistant</strong></h3> <p>If you’re on-the-go and need information quickly, don’t sweat it! Ask our Virtual Assistant. It’s a quick way to get answers to general pension questions. </p> <p>The Virtual Assistant is available 24/7, and you don’t need to log in to myRPS to use it. You’ll find it in the bottom right hand corner of your screen whenever you visit your website.</p> <p>The Virtual Assistant won’t have access to your personal pension details, but it will direct you to where you can find what you’re looking for. If you need information on your personal pension details, <a href="https://member.railwayspensions.co.uk/login">log into your myRPS account</a>.</p> <p>Just 10 minutes, that’s all it takes to keep up with your retirement planning. Try it for yourself. The ball’s in your court! </p>

<p>Now you’re past the decade of the firsts, your 20s, you’re probably more settled and have an idea of how you want to live your life and what your priorities are for the foreseeable future. </p><p>In your 30s, you’ve probably changed a couple of jobs and moved up the career ladder but you also probably have a family to care for, childcare costs to pay, holidays to fund and many more financial demands to meet. This, understandably, may see your money stretched and may make you look at where you could cut back on your spending. And, even though a temporary pause on your pension payments may look like a good way to give your bank account a bit of a breather, it’s important you think long and hard before you make the decision.</p><p>Here’s why staying focused on your retirement goal and trusting your saving journey even in a time of a significant financial strain is the best thing you can do for your and for your loved ones’ future. </p><p>&nbsp;</p><h3>You’re not saving alone</h3><p>One of the most valuable benefits of saving for the future with the Railways Pension Scheme (RPS) is the fact that you’re not saving alone. Your employer puts money in too. If you’re a Defined Benefit member, your employer will pay in at least 60% of the money you put in (normally 1.5 times the contribution you make). For example, if you earn £25,000 a year and you pay in £3,000 towards your pension, your employer will top that amount up by £4,500 for free. </p><p>What is more, you get free money from the government too for saving into a workplace pension. The support comes in the form of tax relief on your pension contributions. The money you pay in is taken from your salary before you pay any tax on it, which helps you save more towards your pension. So, if you are a basic rate taxpayer and want to save £100 into your pension, because of the way tax relief works it will actually only cost you £80. The other £20 comes from the tax relief.</p><p>So, it’s important you think carefully before making any decisions about reducing or stopping your pension payments as this means you’ll lose a fair amount of money. </p><p>&nbsp;</p><h3>Will your State Pension be enough to give you a good life in retirement?</h3><p>As much as we’d like to think of retirement as the golden time of our lives when for once we don’t have to worry about work and have the freedom to travel, take up new hobbies and enjoy life, we know that in reality the lifestyle we have in later life will largely depend on what income or savings we have. If you are only relying on the State Pension, will this give you the lifestyle you want at retirement? It’s great we have it, but the current State Pension is around &nbsp;£10,000 a year, will that be enough? That’s around £10,000 less than what you would get paid if you were working 40 hours a week on the National Minimum Wage. And, based on current legislation it won’t be available until your late 60s. </p><p>But still if we play our cards right now and save towards our future while we are in work, we are much more likely to have the retirement we hope for.</p><p>&nbsp;</p><h3>Don’t interrupt the art of compounding</h3><p>Your pension gets invested to give you an income when your working days are over. And the longer you keep it invested, the more chance it has to grow. Sometimes, it’d benefit not only from investment growth, but further growth on it too. This process is known as compounding and we explain it in more detail our <a href="https://member.railwayspensions.co.uk/knowledge-hub/news-and-views/blog/rps-blog/2023/06/19/pension-planning-your-20s---making-the-most-of-a-pension-plan-when-you're-young" data-sf-ec-immutable="">‘Pension planning in your 20s’ article</a>. </p><p>Interrupting the investment process by stopping your pension payments would throw a massive spanner in the works. This is because it would affect the compounding that happens while you’re regularly investing into your pension. This on its turn means that you could potentially miss out on significant sums of money in the long run – after 20, 30 years.</p><p>The compounding effect only applies to members who have some or all of their pension money invested such as members of the Industry-Wide Defined Contribution (IWDC) section and members who pay in Additional Voluntary Contributions (AVCs) such as BRASS. Compounding has no impact on Defined Benefit (DB) only members but if you stop paying into your DB pension that will impact what you have to live on when your working days are over. What is more, you may not be able to re-join the DB section in the future.</p><p>&nbsp;</p><h3>Once you’ve stopped paying in, you may not start again</h3><p>Humans are creatures of habit and routine. It can be hard to go back to saving after you’ve had a flavour of having that extra bit of money in your pocket every month. </p><p>And as pointed above, if you leave the RPS, you may not be able to re-join again.</p><p>Think of your pension as one of your last options not your first when looking at where you can cut costs. To help our members think about their broader financial wellness we have introduced a simple planning tool called Moneyfit which you can access when you log into your <a href="https://member.railwayspensions.co.uk/my-rps" data-sf-ec-immutable="">myRPS account</a>.</p><p>Moneyfit is designed to give you some simple hints and tips to help you manage your money. It’s totally anonymous, and takes around 5-10 minutes to use.</p><p>&nbsp;</p><h3>Have a plan! If you don’t have one, make one! </h3><p>By failing to prepare, you are preparing to fail as the saying goes. The same goes for retirement planning.</p><p>Even if you’re not left with any other option but to cut back on your pension saving this may not mean leaving the Scheme completely but pausing your Additional Voluntary Contributions (AVCs) for a little while. </p><p>So as an example you may choose to pause your £50 monthly BRASS contributions for a while. This might be a good option for you if it means you can stay in the Scheme and can continue to save towards your pension. Or if you feel you have to leave pension saving behind for the time being, it’s always worth getting back to it when you’re more financially stable and can afford to save for later life.</p><p>The important thing is that you plan ahead, understand what you might need in retirement and ensure you are saving enough, without putting your broader financial wellness at risk. </p><p>Leaving the Scheme rather than pausing any extra payments you’re currently making could significantly impact your lifestyle in the future. It means you’ll have less to live on when your working days are over. For some, this also means they won’t be able to afford to retire when they want to and will be pushed to continue to work for longer. </p><p>To get an idea of how much income you might need to enjoy the lifestyle you hope for, give our <a href="/knowledge-hub/help-and-support/retirement-budgeting-calculator">Retirement Budgeting Calculator</a> a go. It’s a quick and easy tool to help you estimate if you’re saving enough for later life.</p>

<p>Your 20s is the decade when you get to do many things for the first time – getting your first decent job, buying your first car, getting on the property ladder and many more. For many<strong>, </strong>the 20s is also the time when you have fewer responsibilities and get to have enough money on your hands to be able to afford treats like regular meals out and travel. <br></p><p>Having reached financial independence, planning for your later life may not be at the forefront of your mind right now. You may be paying off a student loan and you want to enjoy your money. But here’s the thing about pensions: the earlier you start saving, the better. There are a number of reasons for this, let’s see what they are. </p><p><strong>&nbsp;</strong></p><h3>Time is on your side<br></h3><p>One of the most valuable benefits of your 20s is time. You have time to save enough to be able to afford an enjoyable life when your working days are over and you come to retire. You also have time to experiment with saving and to build good saving habits. For example, you may find that you don’t want to be saving an awful lot from the get go. You can start with a small sum you are comfortable giving up in the beginning and then build it up in the future. Or you might decide to go all in and to save as much as you can towards your pension while you’re young and don’t have a family to care for. Whatever your approach, starting early means you have time to build a larger fund over your working life that’d help set you up for a brighter future. </p><p>&nbsp;</p><h3>The power of compounding<br></h3><p>Have you heard of compounding? It’s a good one to know when it comes to pensions. It’s a term used to describe the process of achieving growth not just on the money you’ve paid in or invested initially but on the growth of it as well. <br></p><p>You are probably aware of the concept of investing - the longer we keep our money invested, the more time it has to grow. Ideally it can grow and then grow on the initial growth and build upon itself over time. <br></p><p>Here’s a simple example of compounding:<br></p><p>Let’s say you invest £1,000 towards your pension that earns 5% interest per year. For the first year your investment will have grown by £50 (5% of £1,000) which means you now have £1,050. However, the following year you’ll gain 5% of what you’ve achieved already £1,050, not on the original invested sum of £1,000. So, your investment will grow by £52.50. The more time you give your money to compound and grow, the more you’ll have to live in retirement.&nbsp; <br></p><p>Dubbed by Einstein as the eighth wonder of the world, compounding can be especially powerful the longer time you have to invest your money.</p><p>&nbsp;</p><h3>Your pension benefits help you save more efficiently</h3><p>If you pay into a workplace pension, you can tap into lots of additional benefits that come as part of it. </p><p>&nbsp;</p><h4>You’re not saving alone<br></h4><p>One of the most valuable benefit is the fact that you’re not saving alone. Your pension with the Railways Pension Scheme is classed as a workplace pension, so both you and your employer pay into it. Think of your employer’s contributions as ‘free’ money for you!<br></p><h4>Tax relief is your side-kick<br></h4><p>Tax relief is one of the reasons why saving for retirement, as with the Railways Pension Scheme, is such a fantastic opportunity. It means you don’t pay any tax on the money you put in, which makes your money go further in the long run.<br></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%.<br></p><p>So, if you’re a basic-rate taxpayer and want to put in £100, all that money will end up in your pension as you won’t get charged any tax on it. Otherwise, you would’ve been left with £80 as the taxman would’ve taken £20 off you.<br></p><h4>Saving extra towards your pension is tax-free</h4><p>With the RPS, you can boost your pension savings tax-free by paying in Additional Voluntary Contributions (AVCs). AVCs are a great way to save extra towards your pension either by making regular or one off payments into it. So, if you get a bonus or a monetary gift and want to spend it wisely, why not consider paying it towards your pension? And you’d get tax relief from the government too. This could be a great way to make the most of your current pension Annual Allowance before this tax year comes to end in April 2024. </p><h3>&nbsp;</h3><h3>Be wise and savvy with your money</h3><p>Making sound financial decisions that work in your favour is something you learn over time. However, there are ways to ensure you’re making the most of your money even if you don’t have much financial or pension knowledge right now. Keep track of your money! <br></p><p>If you are in your 20s, you may be part of Generation Z*. Being a Gen Z-er, you’re probably striving to be as paperless as you can be but that doesn’t mean you can’t keep a comprehensive record of you<strong>r</strong> income vs spending. There are a number of mobile applications, spreadsheets and other online tools to help you keep a record of your spending. Having a clear view of your finances could help you identify where you can reduce your spending, so you have some more money to put towards your pension, like opting for homemade lunch and coffee for example. </p><h3>&nbsp;</h3><p>*Generation Z – people born between 1997 and 2012</p>

<p>Did your dad work in the rail industry? We’d love to hear his story! Head over to our <a href="https://twitter.com/rpspensions?lang=en" data-sf-ec-immutable="">Twitter</a> and share a tweet about your father’s life in rail<strong> #RPSRailFathers</strong></p><p>We begin by remembering one of the most emblematic figures in the history of British Rail…</p><h3><strong>George Stephenson (1781-1848) – the ‘Father of Railways’</strong></h3><img src="https://cdn.rpmi.co.uk/mp-sitefinity-prod/images/default-source/old-site-images/carousel-landing-page-images/twitter---rps---1200x675px_t10_02_george-stephensonf239e349-ebd0-4d26-ae25-9a0286399100.jpg?sfvrsn=bd6cae19_1" alt="Black and white image of George Stephenson"><br><p>&nbsp;</p><p>George came from a poor working class family in Wylam, Northumberland and was 1 of 6 children. Though he technically had no formal education from starting work at an early age, he had a wealth of life experience. &nbsp;His father was a mechanic who worked on a Newcomen steam engine in Newcastle and by age 19, George was operating a Newcomen himself. What we may consider as a difficult start in life was perhaps the greatest catalyst for his invention and innovation. George achieved global acclaim with his early locomotive, 'Rocket', which he developed with his son Robert, and revolutionised how people travel by rail.&nbsp;</p><h3><strong>Robert Stephenson (1803-1859) – built on his father’s success</strong></h3><img src="https://cdn.rpmi.co.uk/mp-sitefinity-prod/images/default-source/old-site-images/carousel-landing-page-images/twitter---rps---1200x675px_t10_04_robert-stephenson.jpg?sfvrsn=da4cd42f_1" alt="Black and white image of Robert Stephenson"><p><br>Engineering was in the Stephenson blood. Following in his father’s footsteps, and teaching George a thing or two about mathematics, Robert developed some of the earliest passenger steam engines in the world. This includes the Rocket, the Invicta, the Planet and the Patentee. Like George’s history, Robert’s story is also one of overcoming challenging circumstances. He walked 10 miles to school and back every day until his father bought him a donkey for fear of him becoming ill. Together, the father and son put Britain on the map as a world leader in rail.&nbsp;</p><h3><strong>Isambard Kingdom Brunel (1806-1859) - child prodigy</strong></h3><img src="https://cdn.rpmi.co.uk/mp-sitefinity-prod/images/default-source/old-site-images/carousel-landing-page-images/twitter---rps---1200x675px_t10_03_isambard-kingdom-brunel.jpg?sfvrsn=1060fc56_1" alt="Black and white image of Isambard Brunel"><p><br>A pioneer of ship design and railway building, the civil and mechanical engineer learned Euclidean geometry by the age of 8. He was famous for making travel faster, designing a ship that only took 15 days to get from Liverpool to New York. In 1833, Brunel became the chief engineer of the Great Western Railway.&nbsp;</p><h3><strong>William Henry Barlow (1812-1902) – innovative designer</strong></h3><img src="https://cdn.rpmi.co.uk/mp-sitefinity-prod/images/default-source/old-site-images/carousel-landing-page-images/twitter---rps---1200x675px_t10_05_william-henry-barlow.jpg?sfvrsn=fac21a31_1" alt="Black and white image of William Henry Barlow, sketch of St Pancras Station and an image of the Forth Road Bridge in Scotland"><p><br></p><p>Famous for designing the remarkable, cathedral-like train-shed roof at St Pancras station (which was the largest in the world at the time), William Henry Barlow was a renowned architect, civil engineer and inventor. His exploration of steel and girders led to the development of one of the most intricate bridges in the world: the Forth Bridge in Scotland. </p><h3><strong>Charles Frederick Beyer (1813-1876) - philanthropist</strong></h3><img src="https://cdn.rpmi.co.uk/mp-sitefinity-prod/images/default-source/old-site-images/carousel-landing-page-images/twitter---rps---1200x675px_t10_06_charles-frederick-beyer.jpg?sfvrsn=11922c85_1" alt="Black and white image of Charles Frederick Beyer"><p><br></p><p>Charles’ astute aesthetic and functional design of locomotives was only overshadowed by his generosity. As well as cofounding the Institution of Mechanical Engineers, Charles’ philanthropy led to him establishing 3 churches, 3 schools, and becoming the biggest donor to the University of Manchester.</p><h3><strong>Richard Trevithick</strong><strong> (1771-1833) – inventor of the first steam locomotive</strong><strong></strong></h3><img src="https://cdn.rpmi.co.uk/mp-sitefinity-prod/images/default-source/old-site-images/carousel-landing-page-images/twitter---rps---1200x675px_t10_07_richard-trevithick.jpg?sfvrsn=4bbfe068_1" alt="Black and white image of Richard Trevithick"><p><br></p><p>Son of a mining captain, British inventor and mining engineer Richard Trevithick developed the first high-pressure steam engine to work without a condenser. In 1801, his “Puffing Devil,” carried several people, and this is thought to be the first instance of steam-powered travel.&nbsp; <br></p><p>Thank you to all Fathers who have contributed to rail over the years. We wish you a very happy Father’s day!&nbsp;</p>

<p>Mark is one of <a href="https://cdn.rpmi.co.uk/mp-sitefinity-prod/docs/default-source/meet-the-trustee/meet-the-trustees072c1c07f92b4e59bba7947d06baf580.pdf?sfvrsn=28d19d54_32" data-sf-ec-immutable="">16 Trustee Directors</a>, who sit on the Board and help to look after your interests as a member of the railways pensions schemes.</p><p>He brings a wealth of experience to this role, thanks to a career that extends over 28 years.</p><h4>What does a typical day as a Trustee Director look like for you?</h4><p>Being a Trustee Director involves a lot of reading and keeping informed on matters relating to the running of schemes: whether that’s digesting information in Board papers, Committee papers, emails or advisory updates. I attend meetings and ensure I contribute to the best of my ability to get the right outcomes for our members.</p><h4>What do you enjoy most in your role?</h4><p>I love to help members understand the complex world of pensions: to give them that lightbulb moment when they understand what it all means and why it’s so important.</p><p>The role is really varied: from talking to members about their pensions in Wiltshire to attending investment meetings in London; from discussing an individual’s ill-health benefits to keeping informed on legislative changes via a virtual meeting.</p><h4>What are you most proud of in your role?</h4><p>I’m most proud of being there for members and supporting them wherever possible. And, I’m proud to be part of a Trustee Board – supported by Railpen – that strives to do all it can for its members.</p><h4>What support is on hand for individuals new to the role?</h4><p>Within Railpen, there is lots of support from the Trustee Governance team.</p><p>On top of formal support, I’d always encourage newer Trustee Directors to be proactive and develop through industry networking. You can learn so much at pensions and Trustee events.</p><h4>What would you say to someone who is thinking about becoming a Trustee Director in future?</h4><p>Being a Trustee Director is a great development opportunity for individuals from all types of backgrounds.</p><p>Don’t dismiss the opportunity because you’re concerned you don’t ‘get it’ all straight away. Part of being a Trustee Director is continually learning and there’s so much support on hand.</p><p>It’s such a worthwhile experience both for an individual and their employer. A brilliant way to advance professionally and be exposed to exciting, varied activities. Most of all, the satisfaction you get from helping members is incomparable.</p><p>I’d say that being a Trustee Director requires about 70-80 days of my time each year. It’s a big commitment but do I have any regrets? No, I absolutely love it!</p><p>Do you see yourself as a Trustee Director? Speak to your Employer Representatives for more information.</p><p>You can learn more about the role and responsibilities of The Trustee on our dedicated <a href="/knowledge-hub/the-trustee">Trustee page</a>.</p><p>&nbsp;</p><p><strong>*</strong><em><strong>Mark Engelbretson left the Trustee Board on 30 November 2023.</strong></em></p>

<p>Providing for our loved ones is something many of us worry about after we die. So, it’s reassuring to know those who matter to you could get some help when you’re no longer around to support them. </p><p>A valuable benefit of your Railways Pension Scheme (RPS) membership is that a lump sum might be paid if you die before taking your pension. So, it’s a good idea to tell us who you’d like the money to go to by completing a nomination form. </p><p><strong>Why nominate?</strong></p><p>A lump sum may be paid if you die before you claim your Railways pension (or within five years of taking it). This is usually tax-free.</p><p>It’s important you name the people or organisations you want the money to go to by making a nomination. The Trustee considers your nominations when deciding who to make any payments to. </p><p>If you don’t make a nomination, the Trustee may not know where to pay the money. This could mean the payment is delayed, and even taxed as a result. </p><p>It’s a difficult time when you lose someone, without added financial stress and disagreements between friends and family. So it’s a good idea to nominate to help prevent unnecessary worry.</p><p><strong>Who can I nominate?</strong></p><p>You can nominate:</p><ul><li>An individual, or several people, such as family and friends</li><li>Organisations or good causes</li><li>Charities</li></ul><p>Nominations are confidential, so your nominees won’t know if you’ve added or removed them as a nominated beneficiary. You can nominate as many people as you want to.</p><p>Make sure to keep your nominations up to date so they still reflect your wishes, particularly if your circumstances change. You could make a note in your diary to review your nominations every year or so.</p><p><strong>How do I nominate?</strong></p><p>The quickest way to make a nomination is to <a href="https://member.railwayspensions.co.uk/login" data-sf-ec-immutable="">log into your myRPS</a> account (make sure to <a href="https://member.railwayspensions.co.uk/register" data-sf-ec-immutable="">register for an online account</a> if you haven’t already).<strong> </strong>When you’re logged in, select ‘My Nominations’ and follow the simple steps.</p><p>If you have more than one period of membership in the Scheme, you should make separate nominations for each of your records, even if you are nominating the same people. You can do this in your myRPS account by switching between your membership records.</p><p>Or, you can download the <a href="https://cdn.rpmi.co.uk/mp-sitefinity-prod/docs/default-source/forms/forms-for-all-members/nomination-form6b7e5b868b1b419db50f7607489e41ed.pdf?sfvrsn=746a069f_6" target="_blank">Nomination form</a>, print it off and fill out your nominations. Then return it using the instructions and the Railpen address on the form.</p><p>When you nominate, you’ll need to give the following details of your nominee(s):</p><ul><li>Title</li><li>Name</li><li>Relationship to you</li><li>Nominee’s address</li><li>Percentage of the pension benefits you’d like your nominee to receive</li><li>Details of your nominee’s guardian if they are under 18 (you can’t name yourself)</li></ul><p>When you’ve made your nominations, we’ll let you know your wishes have been recorded within 28 days.</p><p><strong>Is a nomination the same as a will?</strong></p><p>A nomination is <strong>not</strong> the same as a will. Your nominations show where you’d like a lump sum from your pension to go if you die before you claim it, and this cannot be covered in your will. </p><p>Many people think everything they own will be given out according to their will when they die. It’s important to remember that if you die, your Railways pension is separate to the rest of your estate. </p><p>You can learn more about how death benefits might work on the dedicated <a href="/knowledge-hub/help-and-support/reporting-a-death">reporting a death page</a>.</p><p><strong>Who can nominate?</strong></p><p>Every member can nominate, unless they’ve already been taking their pension for more than five years. We strongly encourage you to nominate – it’s quick, easy, free and could make life for your loved ones much easier.&nbsp; </p>

<p>With the start of the new financial year and the announcements in the Spring Budget, it seems timely to give members a bit of a re-fresher on tax fundamentals. From tax relief - to all of the tax allowances that apply in different situations and making the most of them all – we have it all covered in the next few lines. <br></p><h2>Tax relief on your pension – what is it? </h2><p>When you save for retirement via a pension, some of the money that would normally have gone to the government in tax from your wages, goes towards your pension instead. This is known as tax relief. It increases your savings and can be a substantial amount if it’s saved over many years. <br></p><p>Here’s an example. If you’re a basic-rate taxpayer and want to save £100 into your pension, because of the way tax relief works it will actually only cost you £80. The other £20 comes from the tax relief.<br><br></p><h2>There’s a limit to how much tax relief you can get</h2><p>While you can put as much money as you want into your pension, there are limits on the amount of pension savings that can benefit from tax relief each year and over your lifetime. These amounts are set by the government and may vary at the start of each financial year in April. <br></p><p>A few major pension-related changes were announced on 15 March when Chancellor of the Exchequer Jeremy Hunt presented his Spring Budget. <br></p><p>The main headlines were changes to the amount of tax-free savings members can make each year (the ‘Annual Allowance’) and over their lifetime (the ‘Lifetime Allowance’).<br><br></p><h2>Limits and tax allowances that could affect RPS members</h2><p>Find below a breakdown of the tax allowances that apply to pension savers and further information on the changes that were introduced to them in the Spring Budget. <br></p><p>The main tax allowance affecting members of the RPS who are in a defined benefit (DB) arrangement is the Annual Allowance, but there are other allowances that could apply too. </p><p>&nbsp;</p><h3>Annual Allowance </h3><p>The Annual Allowance (AA) is the limit on your pension savings in a single tax year before you need to pay a tax charge. For the year 2023/2024, this limit is either 100% of your annual earnings, or £60,000 (previously £40,000), whichever is lower. <br></p><p>If you want to consider whether your pension savings will exceed the Annual Allowance, you need to understand how increases in your pension savings are worked out. It’s not as simple as just knowing how much you’ve paid in. You can find out more in the <a target="_blank" href="https://cdn.rpmi.co.uk/mp-sitefinity-prod/docs/default-source/rayn/guides-for-all-members/annual-allowance-tax-limits.pdf?sfvrsn=d6e4ef2d_16">Annual Allowance Read as you Need guide</a> <br></p><p>If you pay Additional Voluntary Contributions (AVC) to BRASS or AVC Extra, these also count towards your Annual Allowance. However, they are considered on a slightly different basis because they are classed as defined contribution (DC) arrangements. </p><p>&nbsp;</p><h3>Money Purchase Annual Allowance </h3><p>The Money Purchase Annual Allowance is a limit on the amount of tax-free pension savings you can make into a defined contribution (DC) pension arrangement. It would only affect you if you take savings from a defined contribution arrangement (which includes Additional Voluntary Contributions) in certain ways. <br></p><p>If you have a DB pension but you pay AVCs (BRASS or AVC Extra) and you start taking money from your AVCs, the amount you can continue paying into your pension and still get tax relief may reduce. This is because AVCs are classed as DC not DB, because they get invested in.<br></p><p>This is known as the Money Purchase Allowance (MPAA). The MPAA will be set at £10,000 (used to be £4,000) from 6 April. <br></p><p>If you start taking money from a DC arrangement and trigger the MPAA, the administrator or scheme manager will send you a flexible access statement to show you have triggered the MPAA. You must then send that statement to schemes where you are still actively accruing benefits. <br></p><p>You can check if you’ve gone above the MPAA using a simple tool on the <a href="https://www.gov.uk/guidance/work-out-your-allowances-if-youve-flexibly-accessed-your-pension" data-sf-ec-immutable="">government’s website</a>. <br></p><p>More information on the MPAA is available in your <a target="_blank" href="https://cdn.rpmi.co.uk/mp-sitefinity-prod/docs/default-source/rayn/guides-for-all-members/annual-allowance-tax-limits.pdf?sfvrsn=d6e4ef2d_16">Read as you Need guide</a>. </p><h3>&nbsp;</h3><h3>Tapered Annual Allowance </h3><p>The Tapered Annual Allowance (TAA) generally applies to those on the highest incomes. This allowance gradually reduces the amount you can save into your pension plan annually depending on your income. &nbsp;It may affect you if your income is over £260,000 (previously £240,000) from 6 April 2023. </p><p>&nbsp;</p><h3>Lifetime Allowance </h3><p>The Lifetime Allowance (LTA) is the limit on the total amount of pension savings you can make in your lifetime without having to pay tax when you come to claim them. If your savings have exceeded the limit, you’d need to pay a tax charge on any amount over the allowance. The LTA limit has been frozen at £1,073,100 and it was announced 2 years ago that it won’t be changed until 2026. <br></p><p>It was, however, announced last month that the LTA will be abolished completely from 6 April 2023. This means that no one will face a LTA tax charge with the start of the new financial year. <br></p><p>As a result of the abolition of the LTA, the maximum amount most members can take as a lump sum will be frozen at £268,275, which is 25% of the current standard lifetime allowance of £1,073,100. However, members with a protected right to a higher lump sum on 5 April 2023 will continue to be able to access this right.</p><p><br></p><h2>How will I know if I’ve exceeded my allowances? </h2><p>If your pension savings in the RPS are greater than either the AA, or the MPAA, then we will send you a Pension Savings Statement (PSS). This will show how much of your allowance you have used. <br></p><p>You can apply to carry forward any AA that you haven’t used from the previous 3 years to the current tax year. However, no carry-forward is available for MPAA. </p><p>&nbsp;</p><h2>Making the most of your allowances</h2><p>With the challenging financial times we are all facing, making the most of your tax limits may not be a priority at the moment. Everyone’s situation is different, though, and it’s always helpful to know your options in case spending a little more towards your pension seems like a logical step. To get the most out of your limits, you might want to consider paying in as much as you can before the tax year is up. This doesn’t necessarily mean paying in the full allowance but paying in as much as you are able to at the time. </p><p>&nbsp;</p><h2>Enhance your understanding of the topic of tax</h2><p>You can find more details in our online <a href="/knowledge-hub/help-and-support/RAYN">Read as you Need guides</a>, as well as a <a href="/knowledge-hub/help-and-support/video-library">series of short videos</a>. <br></p><p>For more information on pension tax relief, check out the <a href="https://www.moneyhelper.org.uk/en" data-sf-ec-immutable="">Money Helper website</a> or try the <a href="https://www.which.co.uk/money/pensions-and-retirement/pensions-and-retirement-calculators/pension-tax-calculator-avRmf8S2yxd1" data-sf-ec-immutable="">Which? pension tax relief calculator</a>. It shows you how much tax relief you get based on your pension contributions.</p><p>&nbsp;</p><p><em>&nbsp;</em></p><p><em>We will be updating our website content and guides over the coming months to reflect the changes announced as part of the Spring Budget 2023, so please refer to this blog or </em> <a href="https://member.railwayspensions.co.uk/knowledge-hub/news-and-views/news-updates/2023/03/15/spring-budget-announcements" data-sf-ec-immutable="" data-sf-marked=""><em>this news article</em></a><em> in the meantime for the 2023-24 tax year figures.</em></p>

<p>The Trustee has issued a comprehensive response to The Pensions Regulator’s (TPR) recent consultation package on its draft funding Code of Practice for defined benefit (DB) pension schemes.&nbsp;TPR is consulting based on its interpretation of how trustees can comply with the legislative requirements set out in the Pension Schemes Act 2021 and the proposed draft regulations that the Department for Work and Pensions (DWP) consulted on in 2022 (the Trustee’s full response to that consultation can be found&nbsp;<a href="https://member.railwayspensions.co.uk/knowledge-hub/news-and-views/blog/rps-blog/2022/11/14/trustee-responds-to-dwp-consultation" target="_blank" data-sf-ec-immutable="" data-sf-marked="">here</a>).</p><p>The Trustee notes that most of the draft Code of Practice serves as welcome detail since the DWP consulted on its draft regulations last year. However, the Trustee feels there are still a number of areas where the draft regulations, and/or the draft Code of Practice, may lead to unintended negative consequences for DB schemes and their members. The covering note to the Trustee’s response highlights several key concerns.</p><p>The Trustee believes that it is essential that the new funding regime allows members to continue to build up affordable and sustainable DB pensions, and that it remains able to pay these benefits over the long term.</p><p>Through its response to these consultations and its extensive engagement with TPR, the DWP, and a wide range of other industry stakeholders, the Trustee is aiming to support TPR and the DWP in developing solutions that work for the wide range of DB schemes in the UK, including open schemes.</p><p>The Trustee and Railpen will continue to engage with the DWP and TPR in the months ahead, to try to ensure that the final regulations and Code of Practice are as helpful as possible, and serve the best interests of our members.&nbsp;</p><p><span style="text-decoration: underline"><a data-sf-ec-immutable=""></a><a target="_blank" href="https://cdn.rpmi.co.uk/mp-sitefinity-prod/docs/default-source/default-document-library/rptcl---response-to-db-funding-code-consultation.pdf?sfvrsn=f8e12420_1">Read the Trustee’s full response to the consultation.</a></span></p><div><div><div id="_com_1"><p>&nbsp;</p></div></div></div><p><span style="text-decoration: underline"><a data-sf-ec-immutable="">&nbsp;</a></span></p>

<h1>1. What is a pension?</h1><p>A pension is a savings plan to provide income for when you retire. There are tax advantages compared with other types of savings. There are 3 main types of pension:</p><h3>1 Workplace pension</h3><p>A workplace pension is set up by your employer to help you save for retirement. It’s also sometimes known as an occupational pension. You pay regular contributions, your employer normally pays in too, and the government contributes with tax relief. So it’s a great benefit to have. The Railways Pension Scheme (RPS) is a workplace pension.</p><h3>2 Private pension</h3><p>This is arranged privately by you. You set up regular contributions and the government adds tax relief.</p><h3>3 State Pension</h3><p><strong></strong>This is a regular payment from the government once you reach State Pension Age. Eligibility depends on your National Insurance record. Even if you can get State pension, on its own, it may not provide you with enough income to live on comfortably in retirement. </p><p>Your RPS workplace pension is likely to be one of 2 types:</p><h3>1 Defined benefit (DB)</h3><p>The Railways Pension Scheme (RPS) Shared Cost Sections are defined benefit sections.</p><p>A defined benefit (DB) scheme pays you a retirement income based on your salary and how long you’ve been a member of the scheme, rather than on the amount of money you’ve contributed to the pension. </p><p>The RPS Defined Benefit Sections are mostly ‘final salary’ schemes and give you a guaranteed annual income for life, based on your final or final average salary. </p><h3>2 Defined contribution (DC)</h3><p>A defined contribution (DC) scheme builds up a pension pot to be used in retirement. The size of the pot will largely depend on how much you and/or your employer contribute and how much this grows through investment returns. The Industry-Wide Defined Contribution section (IWDC) of the RPS is a DC scheme. </p><p>You can find out which type of pension you have if you log in (or register) to your myRPS account and select ‘My pension’ and then ‘Membership details’ in your home page.</p><p>A group of employer and member elected representatives, known as “The Trustee”, oversees the management of the scheme including collecting contributions and paying benefits. The Trustee regularly checks that the Scheme is being managed in line with their expectations and keeps you informed via your pension administrator, Railpen.&nbsp; If you’d like to find out more about the Trustee, go to <a href="/knowledge-hub/the-trustee">The Trustee</a>.&nbsp;</p><h1>2. Why pay into a workplace pension?</h1><p>Workplace pensions have many important advantages over other saving schemes that will make your savings grow quicker. Here are some of them: </p><h3>Your employer contributes too<strong> </strong></h3><p>What sets a workplace pension apart from a personal pension and other saving options is that your employer normally contributes too.</p><h3>You get tax relief<strong> </strong></h3><p>Another key benefit of a pension plan over other savings plans is tax relief. This tax relief is given based on the rate of income tax that you pay. In the RPS your pension contributions are deducted before you are taxed. You will usually therefore pay less tax because your tax will be calculated based on a lower amount of UK earnings.</p><h3>&nbsp;Help with managing your Railways Pension Scheme</h3><p>On the RPS website you have 24 hour access to free, online, award-winning support and guidance.</p><p>You have a dedicated member website with access to a myRPS online account where you can view all your membership and pension information in one place, edit your details, request estimates and access the easy pension calculation tools. If you’re a member of the RPS, you can easily <a href="https://member.railwayspensions.co.uk/login" data-sf-ec-immutable="">log in and/or register</a><span style="text-decoration: underline">.</span></p><p>If you’re an active member, you’ll receive two newsletters a year, packed with information to keep you up-to-date with the Scheme, pension and tax law and give you tips to help you achieve the retirement outcome you hope for.</p><h3>And there’s more</h3><p>A tax-free lump sum of money could be paid to your loved ones if you die before claiming your pension or if you die in service. Check your section's Member Guide for details. You can tell the Trustees who you would like to receive this by completing a Nomination form. You can do this if you <a href="https://member.railwayspensions.co.uk/login" data-sf-ec-immutable="">log in and/or register</a>, then go to ‘My Nominations’ under the ‘My Pension’ section on your home page. &nbsp;Your dependants (usually family) may also get a pension. </p><h1>3. Your investments – how it works with the RPS</h1><p>What options and how your funds are invested will depend on the type of scheme you are in.</p><h3>DB investments</h3><p>If you have a defined benefit (DB) pension, your contributions are combined into a range of carefully selected, pooled investment funds, so they benefit from economies of scale. DB contributions are invested to help pay members benefits but the DB investment performance does not influence what a DB member will get in retirement. Your benefits are typically based on your final pensionable salary over your last year of service and the amount of pensionable service you have at retirement.</p><h3>DC investments</h3><p>If you have a DC pension, if you wish, you can choose and manage your own pension investments from a range of carefully selected options. Or you can have your pension contributions invested for you in a way that is considered suitable for a typical member.&nbsp; You can change your investment choices at any time by <a href="https://member.railwayspensions.co.uk/login" data-sf-ec-immutable="">registering or logging in</a> to your myRPS account.</p><h3>AVC and BRASS investments</h3><p>With these additional contributions, (see 5 below), you have similar investment choices to DC investments. The Trustee, supported by Railpen’s investment and risk experts, makes careful decisions about the strategies and funds available, aiming to achieve the best outcomes for members.&nbsp;</p><h1>4. Tax relief, tax allowances and your pension</h1><p>The great advantage of saving for retirement via a pension, is that some of the money that would normally have gone to the government in tax, goes towards your pension instead and increases your savings. This can be a large amount if it’s saved over many years. </p><p>You can put as much money as you want into your pension but there are certain limits on the amount you put in which can affect the amount of tax relief you're allowed. If you exceed these limits, you may have to pay a tax charge after all, so it’s worth knowing what they are. </p><p><strong>A brief guide to tax allowances affecting pension savings </strong></p><ul><li>&nbsp;The <strong>Annual Allowance</strong> (<strong>AA)</strong> is the limit on your pension savings in a single tax year before you need to pay a tax charge. For this tax year 2023/2024, for most people, this limit is either 100% of your annual earnings, or £60,000, whichever is lower. You can apply to carry forward any AA that you haven’t used from the previous 3 tax years to the current tax year. <a href="https://member.railwayspensions.co.uk/knowledge-hub/help-and-support/RAYN" data-sf-ec-immutable="" data-sf-marked="">Go to the Read as You Need guides on tax allowances for more details.</a></li><li>&nbsp;The&nbsp;<strong>Tapered Annual Allowance (TAA)</strong> is a lower AA.<strong>&nbsp;</strong>This may affect you if your 'threshold income' (your income from all sources before tax) is over £200,000 and your 'adjusted income' (your annual income before tax, plus your pension savings) is over £260,000.&nbsp;<strong>&nbsp;</strong>The lowest the AA can taper down to for those affected by TAA is £10,000.</li><li>The <strong>Money Purchase Annual Allowance (MPAA)</strong> is only triggered if you start to take money from a defined contribution (DC) pension pot in a flexible way such as using drawdown. You should notify Railpen if you trigger the MPAA in another scheme. The <strong>MPAA</strong> is currently set at £10,000 and may be measured against any DC contributions you make.</li></ul><p>You can find out more about tax relief and allowances by visiting <a href="/pension-essentials/pension-tax-limits">the pension tax limits page </a> and watching our videos. </p><h1>5. Saving more into your pension - Additional Voluntary Contributions<strong> </strong></h1><p>While your rail pension provides good benefits, you may wish to save more if you want a higher level of comfort in life after work.</p><p>Saving extra for your pension with Additional Voluntary Contributions (AVCs) is an excellent, tax-efficient way of achieving this. </p><p>Your AVCs are invested with the aim of building up extra pension savings over time. You can choose your own investment funds from a range offered to you, or have them chosen and managed for you.</p><p>AVCs are popular with RPS members because:</p><ul><li>You don’t need to save a set amount every month, although most people do</li><li>It’s a great way to save extra for retirement if you get payments that don’t qualify for your pension (like overtime and bonus payments) </li><li>You get tax relief (on your tax rate) on anything you put in (up to the limits of the Annual Allowance)</li><li>You can put in as little as £2 per week</li></ul><p>DB members who save more via AVCs pay first into BRASS (this is the name of the DB AVC arrangement).</p><p>DC members who save more via AVCs pay into their Personal Retirement Account (PRA).</p><p>You’ll need to speak to your employer if you wish to start saving into AVCs.</p><h1>6. Life changes and your pension</h1><p>It’s wise to know what might happen to your pension if a welcome, or unwelcome surprise comes your way.</p><h3>Family leave </h3><p>If you get maternity, paternity, family or adoption leave pay, what you pay into your pension will be based on what you are earning at the time, while your employer will continue to pay their contributions based on your normal rate of pay. During family leave, your Scheme membership will normally be continuous.&nbsp; </p><p>If you are no longer receiving any pay while on family leave, you won’t normally pay any contributions, and different rules will apply. Some employers will pay your contributions during this time so that your Scheme membership remains continuous but these contributions would have to be repaid on your return to work. If you choose not to repay, then a break in service will be applied to your record. &nbsp;For more detail, and to see the rules for your particular Section, please consult your Member Guide. This can be found on your myRPS home page if you are logged in to your account.</p><h3>Divorce or dissolution<strong> </strong></h3><p>During divorce or the dissolution of a civil partnership, your pension is likely to be considered when financial settlements are worked out. A court order can be made to transfer part of the value of your pension benefits to your ex-spouse, or ex-civil partner. </p><h3>Ill health or incapacity </h3><p>If you need to retire early due to ill health, you should check your member guide to see if you are able to take your pension at that time. Conditions apply and medical evidence is required. </p><h3>Death<strong> </strong></h3><p>A valuable lump sum could be paid to your loved ones if you die before you claim your benefits. When deciding who should receive this, the Trustee will take your wishes into consideration. You should make a ‘nomination’ so the Trustee knows who this will be. You can easily do this if you’re logged in to your myRPS. Go to 'My pension' on your home page and then 'My nominations'.</p><h1>7. How to plan ahead for your future retirement<strong> </strong></h1><p>If you know what your income is likely to be when you retire, it’s much easier to steer a clear course to retirement. </p><p>If you’re a member of the RPS, there are 2 simple ways to find out. You can <a href="https://member.railwayspensions.co.uk/login" data-sf-ec-immutable="">register or log in to your myRPS</a> and use the online pension planner (for DB members) or retirement modeller (for DC members). Or, both DB and DC members can request online estimates any time by logging in to their accounts.</p><p>To find out how much you may expect to need to live on in retirement you can use the simple <a href="/knowledge-hub/help-and-support/retirement-budgeting-calculator">Retirement budgeting calculator</a>. This uses figures from the Pensions and Lifetime Savings Association (PLSA) Retirement Living Standards to help us picture what style of lifestyle we’d like in retirement and how much this would cost us.</p><p>If there’s a shortfall between how much you’re likely to get and how much you’ll need, you’ll then need to make adjustments. One of the easiest ways to top up your railways pension is via AVCs.</p><p>Other solutions could include taking your benefits later or adjusting your lifestyle plan.&nbsp;</p><h1>8. How to approach retirement<strong> </strong></h1><p>At retirement, you have several options available. It’s good to know what these options are beforehand so you can plan in advance.&nbsp; </p><h3>DB members have a guaranteed pension for life. You can: </h3><ul><li>Take part of your pension benefits as a cash lump sum and the rest as regular pension payments. It’s up to you how you divide this up. Generally, as long as the lump sum is worth 25% (but no more than £268,275) of your entire benefits, or less, then it will be tax free. </li><li>Take your entire pension benefits as regular pension payments. This is only possible if the rules of your particular pension section allow it.</li><li>In limited circumstances you can take your entire benefits as a cash lump sum.</li></ul><p>It’s important that you understand the benefits and limitations of each of these options in retirement before making a decision. See more in <a href="/defined-benefit-members/Im-planning-to-take-my-pension/ways-to-take-my-pension">ways to take my pension</a>. </p><h3>DC members have different options for retirement.</h3><p>In the RPS, the money you’ve built up in the Industry-Wide Defined Contribution (IWDC) section is known as your Personal Retirement Account (PRA). </p><p>You have 3 main options when you retire. You can:</p><ol><li>get a flexible income, taking it a bit at a time. This is known as drawdown. Your balance remains invested.</li><li>get a regular, secure income, known as an annuity</li><li>take all of the money in your PRA as a cash lump sum.&nbsp; We call this total encashment. </li></ol><p>You can normally take up to 25% (up to a maximum of £268,275) of the funds in your PRA as a tax-free cash lump sum.</p><h3>More on drawdown</h3><p>The Railways Pension Scheme (RPS) does not offer drawdown directly.</p><p>If you’re considering this option, you will need to transfer money from your Personal Retirement Account (PRA) and set up drawdown with another provider.</p><p>The Trustee has appointed Legal and General Investment Management (LGIM) to offer members access to a&nbsp;<a href="http://www.legalandgeneral.com/workplace/campaigns/rps-pas" target="_blank" data-sf-ec-immutable="" data-sf-marked="">drawdown facility</a>.</p><p>This partnership with LGIM means RPS members considering drawdown can access a high-quality arrangement, with preferential fees, although you are still free to go elsewhere. </p><p>These options for DC members all come with different tax implications, benefits and risks. What you receive, the fees you pay and whether you’re eligible for each option, may also be different depending on which provider you choose. You can find out more in our <a href="https://cdn.rpmi.co.uk/mp-sitefinity-prod/docs/default-source/rayn/guides-of-iwdc-members/a-guide-to-retirement-options.pdf?sfvrsn=36c5518a_19">Read as you Need guide to retirement options</a>.&nbsp;</p><h1>9. Other benefits in retirement<strong> </strong></h1><p>These benefits described below are from the government and are not connected to the RPS.</p><h3>State Pension</h3><p>This is a regular payment from the government once you reach State Pension Age. Whether you can get it or not depends on your National Insurance record. </p><p>You can quickly find out how State Pension works, whether you can get it and how much you might get in a simple 3-part guide here: <a href="https://www.gov.uk/government/publications/easy-read-new-state-pension" data-sf-ec-immutable="" data-sf-marked="" target="_blank">Easy read new State Pension</a>.</p><p>For more information on the new State Pension, go to <a href="http://www.gov.uk/new-state-pension" data-sf-ec-immutable="" data-sf-marked="" target="_blank">www.gov.uk/new-state-pension</a>.</p><h3>Pension credit<strong> </strong></h3><p>Pension Credit is a payment from the government which could help you with your living costs if you’re over State Pension age and on a low income. </p><p>Pension Credit is separate from your State Pension, and you may still be able to claim it even if you have another income, savings or are claiming another pension.</p><p>To claim Pension Credit you must have reached <a href="https://www.gov.uk/state-pension-age" data-sf-ec-immutable="" data-sf-marked="" target="_blank">State Pension age</a> and live in England, Scotland or Wales. </p><p>To find out if you may be able to claim Pension Credit and for more guidance on how to apply, visit <a href="https://www.gov.uk/pension-credit/eligibility" data-sf-ec-immutable="" data-sf-marked="" target="_blank">Gov.uk</a>.</p><h1>10. External support<strong> </strong></h1><p>You will find plenty of additional information and guidance throughout your member website here at <a href="https://member.railwayspensions.co.uk/" data-sf-ec-immutable="">railwayspensions.co.uk</a> but if you decide to seek external support, here’s where you can go below.</p><h3>Financial support and guidance<strong> </strong></h3><h4 style="margin-left: 30px">MoneyHelper</h4><p style="margin-left: 30px">From the Money and Pensions Service (MaPS), MoneyHelper brings together the support and services of 3 government-backed financial guidance providers: Money Advice Service, The Pensions Advisory Service and Pension Wise. It offers free support on a wide range of financial matters. This includes a variety of pension topics.&nbsp; Go to Pensions and retirement at <a href="http://www.moneyhelper.org.uk/" data-sf-ec-immutable="">MoneyHelper</a>.&nbsp;&nbsp; </p><h4 style="margin-left: 30px">Gov.uk</h4><p style="margin-left: 30px">If you’re unclear about any pensions, tax, or National Insurance issues, you can search the government's website for clear, jargon-free explanations. Go to their <a href="https://www.gov.uk/browse/working/workplace-personal-pensions" data-sf-ec-immutable="">Workplace and personal pensions</a> page for a range of useful, free information.</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; white-space: inherit; word-spacing: normal">Financial advice</span></h3><p>This is different to simple guidance. Financial advisers offer you professional advice on financial decisions and you will have to pay for their services. </p><p>If you’re looking for financial and pension advice, please be very wary of scams and fraudsters. Visit <a href="https://member.railwayspensions.co.uk/resources/safety-and-scams" data-sf-ec-immutable="" data-sf-marked="">Safety and Scams</a> to learn how to spot the warning signs. There are many fraudulent advisers around. </p><p>Financial advisers must be regulated by the <a href="https://www.fca.org.uk/" data-sf-ec-immutable="" data-sf-marked="" target="_blank">Financial Conduct Authority (FCA)</a>.&nbsp; You must always check to make sure whoever is offering you advice is actually regulated by the FCA by checking their own website as well as the FCA website. </p><h4 style="margin-left: 30px">Liverpool Victoria (LV)</h4><p style="margin-left: 30px">Liverpool Victoria (LV) has been chosen as the official partner to give RPS members access to financial advice.&nbsp; 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. LV can be contacted on 0800 023 4187. However, you are free to choose your own adviser.</p><h4 style="margin-left: 30px">Unbiased</h4><p style="margin-left: 30px">At <a href="https://www.unbiased.co.uk/" data-sf-ec-immutable="" data-sf-marked="" target="_blank">unbiased.co.uk</a>, you can find a register of Independent Financial Advisers (IFAs) in your area who will help you understand your pension, the options available, and how to manage your finances.&nbsp;</p><p><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; white-space: inherit; word-spacing: normal">*This article is a broad overview of the RPS. Some Sections may have slight differences in their rules, so please check your Member guide for more details. You can find this in ‘My library’ when you log in to your myRPS account.</span></p><h4>&nbsp;</h4>

<p>Put simply, voting is one of the tools used by the people who invest your railway pension to help achieve investment returns needed so you have enough to live on when your working days are over. This is because shareholder voting helps them influence for positive change in the working practices of the companies your pension is invested in. </p><p>Your pension is invested in a mix of businesses operating in different industries and countries. When the investment manager, Railpen, decides to invest in a company, it has a number of instruments up its sleeve to help influence for change in certain areas of their business operations. One such instrument is its right to vote at companies’ Annual General Meetings (AGMs).&nbsp; </p><p>Caroline Escott, Senior Investment Manager at Railpen, oversees the company’s voting activities and is a co-author of the 2023 Global Voting Policy. We turned to Caroline to help us understand how voting in the world of pensions works and why its thoughtful execution is of crucial importance to our members’ outcomes</p><p>&nbsp;</p><p>Caroline, let’s start off by providing a bit more clarity around what shareholder voting is in the context of pensions and ultimately, why it matters to Railpen as an investment manager, to the Scheme and to its members.</p><h4><strong>How do you decide how to vote at a company’s AGM? What do you base your vote on?</strong></h4><p>Railpen invests in thousands of companies on members’ behalf. This means that we vote at thousands of company annual general meetings (“AGM”) each year – most of which take place over a concentrated three-month period (March to July). And each company AGM will offer investors the chance to vote for or against on anywhere between 10-30 ‘AGM resolutions’ (on specific issues such as how much to pay the chief executive and the election of company directors). It’s one of our busiest – but also most exciting! – times of year.</p><p>Our voting decisions are informed by various sources and tools. Throughout the year, we meet with our largest companies, as well as those where we have concerns around specific ESG (environmental, social and governance) issues, to further understand their approach and to try to influence them to improve their behaviour in a way that will lead to sustainable financial performance. We call this dialogue “engagement”. When we are voting at these companies’ AGMs, we consider their progress and the nature of our previous discussions and vote accordingly. We see exercising our vote and our engagement with companies as part of a broader influencing approach to try to improve behaviour, so they have to be aligned.</p><p>Sometimes we may request further information from the companies to help us strengthen our decision on how to vote on a particular resolution. </p><p>You can find details of all our voting decisions on our <a href="https://vds.issgovernance.com/vds/#/OTI4OQ==/" data-sf-ec-immutable=""></a><a href="https://vds.issgovernance.com/vds/#/OTI4OQ==/" data-sf-ec-immutable="" target="_blank">website</a>. </p><p>&nbsp;</p><h4><strong>Could you share the top three ‘big picture’ issues for you during this year’s voting season? </strong></h4><p>Our voting decisions (i.e whether we choose to vote for or against the various AGM resolutions) are primarily based on that company’s individual progress on the ESG issues mentioned above. We make sure we take into account their particular circumstances such as how they compare to similar companies or any additional intelligence we may have regarding their willingness to make progress. However, there are definitely some ‘big picture’ themes evidence suggests will financially impact the vast majority, if not all, of the companies we invest in – and which we will be paying close attention to during voting season.</p><ol><li><strong>Workforce treatment and mental health. </strong>I think we can all agree that an engaged, motivated and supported workforce is important for a company’s financial performance. Railpen regularly engages with portfolio companies on workforce issues and ensuring a healthy corporate culture. One of the issues that companies rarely report upon and which we feel still does not receive sufficient attention is workers’ mental health. So from this year, we will be focusing on applying voting sanctions where we feel more needs to be done to support workers’ mental wellbeing during what are challenging circumstances for all.<strong></strong><p><strong>&nbsp;</strong></p></li><li><strong>The climate transition.</strong> We want the companies we invest in to make not just pledges, but progress on net zero.<strong> </strong>Part of the way we assess this is to examine companies’ plans for decarbonisation. If we think these plans lack credibility - &nbsp;for instance if they don’t clearly outline interim targets and milestones, or fail to consider biodiversity loss or the impact on local communities of their activities - then we will consider voting against the company on the resolutions we think will most accurately express our dissatisfaction.<strong></strong><p><strong>&nbsp;</strong></p></li><li><strong>Cybersecurity</strong>. The pandemic hastened the shift towards an increasingly digital world, meaning that cybersecurity risk to our portfolio companies has substantially grown. Railpen has engaged for several years with those companies we deem to face substantial cybersecurity risks, and in this year’s voting season we will be voting against the directors of those companies where we think this risk has not been addressed sufficiently.<strong></strong></li></ol><p>&nbsp;</p><h4><strong>And how do you monitor whether progress is being made on concerns expressed by Railpen at an AGM or at another voting forum? </strong><strong></strong></h4><p>We let our largest portfolio companies know in advance how we intend to vote (and why) and sometimes that triggers a response that gives us additional information regarding their commitments and activities in a certain area. This may then impact how we vote. Furthermore, sometimes signalling our voting intention before the meeting leads to the company committing to the change we are looking for [we give an example of this later!]. &nbsp;</p><p>We also have rolling engagements throughout the year with the companies where we have the largest investments, or where we think there are particular concerns, and we will always discuss our voting decisions at the previous AGM and what we would expect to see from the company to ensure we do not vote against them in following years. We also regularly review documentation and communications from companies to assess whether there have been any changes made.</p><p>&nbsp;</p><h4><strong>Caroline, you’ve been leading Railpen’s voting work over the past couple of years. What’s changed for that time and how is that likely to impact member outcomes? </strong><strong></strong></h4><p>Over the last few years, as well as focusing on a company’s individual ESG risks, we have been increasingly thinking about the big picture themes– like climate change, biodiversity or workforce treatment – which will impact either all or the vast majority of our portfolio companies. As a result, we have been working to more closely reflect our views on these themes in how we vote (as well as in how we use other stewardship tools, like engagement and speaking to policymakers). You can see more in our <a href="https://cdn-suk-railpencom-live-001.azureedge.net/media/media/yl2lq4y3/2023-voting-policy.pdf" data-sf-ec-immutable="" data-sf-marked="" target="_blank">Voting Policy</a>, which we update each year.</p><p>Our investment in a company also gives us other rights beyond voting, and we have been increasingly looking to use these rights in recent years. These rights include the ability to question company directors publicly at the Annual General Meeting (you can see our full list of questions <a href="https://www.railpen.com/knowledge-hub/engagement/agm-statements/" data-sf-ec-immutable=""></a><a href="https://www.railpen.com/knowledge-hub/engagement/agm-statements/" data-sf-ec-immutable="" target="_blank">here</a>) and to organise shareholder resolutions that will ask a company’s other shareholders to express their views on a topic. This year, we have also helped arrange a resolution on climate change at a large US utility firm.<strong></strong></p><p>&nbsp;</p><h4><strong>Can you share with our readers a success story from your experience of using Railpen’s right to vote</strong>?</h4><p>Many more examples can be found in our annual <a href="https://www.railpen.com/knowledge-hub/reports/All?mediatype=All&amp;order=0&amp;term=stewardship" data-sf-ec-immutable="" data-sf-marked="" target="_blank">Stewardship Reports</a> (flick to the section on “Thoughtful Voting”) but a recent one is as follows. </p><p>We had previously engaged with a large and complex non-UK financial services company around its board composition, including the need for a cognitively diverse group of directors who together have the right skills, expertise and appropriate availability to be able to provide effective oversight.&nbsp; One of the directors they had put forward for appointment at the 2022 AGM sat on so many boards and other committees that we felt they would be unable to fully contribute to the oversight of such a complex company. We flagged this issue to the company in advance of the AGM, noting that we were likely to vote against the director’s appointment unless further steps were taken to ensure they could commit enough time. In response, the company issued an announcement that week that the director would be stepping down from some of their other commitments in order to take up this new appointment. We welcomed this and were able to vote in favour of the appointment, but continue to engage with the company to understand how the new director is settling in.</p><p>&nbsp;</p><h4><strong>We are in the lead up to a busy “voting season”, starting this month– what are your expectations and hopes for it and how are you getting ready for it</strong><strong>?</strong></h4><p>The ultimate hope for every voting season is that we won’t have to vote against any company on any of their resolutions, as they are already responding to our engagements and making progress on the ESG issues which matter most to their long-term financial performance! However, this is unlikely to happen for every single one of our thousands of holdings.</p><p>So the objective is that we effectively wield our voting – and other ownership – rights this season to help us influence companies to improve their behaviour, in a way which ultimately helps us secure our members’ futures. The key to a successful voting season is preparation. To this end, we’ve: refined our 2023 Global Voting Policy; made the most of the available systems and platforms to ensure that we have the best possible information at our fingertips to inform each vote; and have a plan – which we are already implementing – for engaging with our investee companies in advance of their AGMs to ensure we are on top of the latest developments and they understand our position (and how we might make our views known through our vote).</p><p>&nbsp;</p><h4><strong>Get familiar with the topic </strong></h4><p>If you are interested in understanding more about Railpen’s global voting positions for the 2023 AGM season, take a look at the <a href="https://cdn-suk-railpencom-live-001.azureedge.net/media/media/yl2lq4y3/2023-voting-policy.pdf" data-sf-ec-immutable=""></a><a href="https://cdn-suk-railpencom-live-001.azureedge.net/media/media/yl2lq4y3/2023-voting-policy.pdf" data-sf-ec-immutable="" target="_blank">2023 Global Voting Policy</a>. </p><p>For a broader take on Railpen’s approach to incorporating ESG factors in its work to protect and enhance the value of members’ pension savings, and the journey to net zero, have a read of the <a href="https://cdn-suk-railpencom-live-001.azureedge.net/media/media/52lhtclx/stewardship-report-2021.pdf" data-sf-ec-immutable="" data-sf-marked="" target="_blank">Stewardship Report</a>.&nbsp;</p>

<p>The cost of living crisis grouped with the aftermath of the Covid-19 pandemic, the gender pay gap and late pension saving habits of some generations are among some of the main reasons why single mothers are classed as one of the most vulnerable groups in our society.</p><p>And they are not a small segment either. According to Scottish Widows’ latest Women and Retirement Report, released in November 2022¹, there are nearly 1.7 million single mother households in the UK today, and they constitute 20% of households with children (there are also around 200,000 single fathers).&nbsp;</p><p>This Single Parents Day - 21 March - we look at how each one of the factors has impacted and collectively led to single mothers having to experience extreme financial difficulties in their daily lives and how they can be supported with saving for retirement. We do this together with Julie Ann Mavin – a professional, a pension saver and a single parent to a teenager. We’re bringing Julie Ann’s perspective in, hearing it first hand from someone who is living the working single parent life and knows what that encompasses – the good and the bad.</p><p>&nbsp;</p><h3>Single mothers taking the biggest hit<br></h3><p>Times are extremely hard for many people in the UK, but research shows that the cost of living is putting a major strain on single parents with single mothers being affected the most. There are a number of reasons for this with <strong>the gender pay gap</strong> and <strong>the cost of childcare</strong> taking a prevailing role.&nbsp;</p><p><br></p><h4>Women earning less than men<br></h4><p>The significant gender gap in income between men and women, with women earning a lot less than men, means women have less capacity to meet increasing financial demands. According to the report cited above, the average man earns over £30,900 a year with the average woman earning over £21,900.<br></p><p>PwC’s Women in Work Index 2023² found that what they call motherhood penalty – the financial strain put on women raising children – has become the most significant driver of the gender pay gap. The research also suggests that affordable childcare is paramount when it comes to helping mothers feel more financially secure and having a chance to get back on the career ladder in a timely manner.<br></p><p>But is the recent announcement made as part of the Spring Statement on 15 March that free childcare will be gradually introduced from next year a light at the end of the tunnel? The pensions industry has gladly welcomed the reform news in hope that the phased launch of long-awaited free childcare for under 3s could help close the gender pension’s gap.&nbsp; <br></p><p>Naturally, women take a much bigger hit than men, taking career breaks to have children, having more childcare responsibilities and having to take more time off work. This in turn has a direct impact on their income and saving habits. There is evidence that the current financial circumstances are having a direct impact on women’s attitude to saving for later life. 16% of women have said that they have to reduce the amount they put into their pension to be able to cope with pressing financial outgoings. The ‘Women and Retirement’ report also suggests that women are having to reduce the monthly contribution they make towards their life after work by an average of £152 per month&nbsp;. By doing so, they are taking a much bigger hit, missing out on benefits such as tax relief from the government and employer contributions towards their pension. <br></p><p>Julie Ann Mavin lives in Newton Aycliffe, in the North East of England, and is a single parent to a 15-year-old boy. She said she considers herself lucky as she hasn’t felt the need to change her pension contributions so far. Julie Ann also said that saving into a pension has always been of great importance to her and she’s been saving towards her future since she was 18. <br></p><p>“Having pension provision in place for when I retire has always been important to me but now as a single person it is even more important as I need to ensure that I can support myself when my working life comes to an end.&nbsp; It is also of some comfort that a death benefit would be paid if I was to pass away.<br></p><p>“Although it’s important to have money in the bank to provide a certain standard of living for your family, you also should think about the bigger picture and how you will afford to live later in life,” added Julie Ann.</p><p>&nbsp;</p><h4>Childcare costs and work patterns<br></h4><p>The cost of childcare in the UK can often take up a large proportion of the family budget of dual-parenting households, even more so for single parents. This can make things quite difficult for single parents who are having to juggle two very important roles – bread winners and main carers for their children. Single parents charity Gingerbread³ has found that the lack of affordable childcare is what prevents single parents from going back to work or starting a job. <br></p><p>According to 2019 statistics released by Gingerbread, 40% of single parents find it difficult to meet their childcare costs. The percentage is likely to be a lot higher four years on, considering the current financial climate and the impact the Covid-19 pandemic has had on many aspects of daily life. Recent news about childcare becoming much more affordable from next year for under 3s will hopefully help ease off the financial strain and promote career development with single parents.&nbsp;&nbsp;<br></p><p>Julie Ann commented that although her son is now a teenager and she doesn’t have to factor in childcare costs in her monthly outgoings, she has definitely felt the pinch caused by rocketing inflation and the increasing cost of living. <br></p><p>&nbsp;“With the increase in the cost of food shopping and a 15% increase in school lunches, paying to feed a growing 15-year-old has become quite pricy!”<br></p><p>Research⁴conducted last year (2022) highlights that the number of single mothers working part-time has increased to 54% compared to a national average of 21%. The problem with part-time working though is that for some women it might mean they won’t qualify for automatic enrolment into a workplace pension schemes as they may be earning less than £10,000 a year. To meet the eligibility criteria workers need to be earning that or more in a single role. &nbsp;&nbsp;<br></p><p>Gingerbread also found that the Covid-19 pandemic has only worsened the situation for single parents, as long-term unemployment has increased since the start of it in 2020.<br></p><p>“Many people were furloughed or made redundant during the pandemic which will have made things even harder for some single parents. Thankfully, neither happened to me. I was sent home to work but what I found quite challenging and stressful was trying to juggle working full-time, keeping productivity to a level whilst trying to ensure that Zach did his school work.&nbsp; At that point I couldn’t have any help from my parents as we weren’t allowed to mix households,” said Julie Ann.</p><p>&nbsp;</p><h3>Single mothers face poverty in retirement<br></h3><p>2022 data has also revealed that 58% of single mothers in the UK don’t meet the financial criteria to be automatically enrolled into a workplace pension with their pension wealth dropping at an all-time low of 40% during the Covid-19 pandemic. The private pension income of a single mother now stands at £11k a year (2022), down from £18.3k in 2020.<br></p><p>The dropping numbers are in stark contrast to what is needed by a single person to have a moderate life in retirement. According to the Pensions and Lifetime Savings Association’s (PLSA) Retirement Living Standards⁵, a single person needs over £23k a year to afford a moderate lifestyle.<br></p><p>The rather negative forecast seems to come as no surprise given the great financial hardship some single parents experience these days, having to juggle solo parenting and working life at the same time. The recent pandemic and the current financial climate are making things even harder for those groups to meet increasing financial demands, with saving for a pension taking a back seat for the foreseeable.</p><p>&nbsp;</p><h3>Saving today for a better tomorrow<br></h3><p>If you’re a single parent experiencing difficulties at the moment, it’s quite possible that saving for retirement isn’t a top priority for you at this moment in time. But here are a few tips on how to get on your saving journey without having to spend an awful lot. Knowing that you’re doing something to help fund your life in retirement will also help put your mind at peace. <br></p><ul><li><strong>Start now!</strong> </li></ul><p>Even if you haven’t been auto-enrolled into the pension scheme offered by your employer due to not meeting the £10,000 minimum earnings criteria, you can ask to join it any time. Ask today! If you do qualify, but you’ve opted out of the scheme some time ago, think about re-joining – it could make a huge difference to your future.</p><ul><li><strong>You don’t have to pay in half your salary to be saving for a</strong> <strong>pension</strong></li></ul><p>Paying into your employer’s pension scheme is brilliant and has lots of benefits, but if you’d prefer to save into a private one, that’s also an option. And remember, you don’t have to save loads from the get go – you can start with a small sum you can afford to give up in the beginning and then build it up as and when you can. Every little helps.</p><ul><li><strong>Remember, saving into a pension comes with lots of valuable benefits! </strong></li></ul><p>No matter how old you are, there are some fantastic benefits from saving into a pension. From contributions from your employer and tax relief on your savings - to life cover for your loved ones should the worst happens to you while you're still working - to an incapacity pension if you can't keep working because of ill health. They all come as part of the package!</p><ul><li><strong>Be proactive</strong> &nbsp;</li></ul><p>If you happen to receive a bonus or a pay increase, for example, think about paying more into your pension if you can. With the Railways Pension Scheme, you can consider paying in Additional Voluntary Contributions (AVCs). It’s a fantastic way to give your pension a bit of a boost as you get tax relief on what you put in, you can save as little as £2 per week if you wish and you don’t need to save a set amount every month.</p><p>&nbsp;</p><p>&nbsp;</p><h2>Works Cited</h2><p>¹ Scottish Widows Women and Retirement <a href="https://adviser.scottishwidows.co.uk/assets/literature/docs/60824.pdf" data-sf-ec-immutable="">https://adviser.scottishwidows.co.uk/assets/literature/docs/60824.pdf</a> </p><p>²PwC Women in Work Index 2023 <a href="https://www.pwc.co.uk/services/economics/insights/women-in-work-index.html" data-sf-ec-immutable="">https://www.pwc.co.uk/services/economics/insights/women-in-work-index.html</a> </p><p>³ Gingerbread <a href="https://www.gingerbread.org.uk/policy-campaigns/childcare/" data-sf-ec-immutable=""><em>https://www.gingerbread.org.uk/policy-campaigns/childcare/</em></a><em></em></p><p>⁴ Now: Pension and Pension Policy Institute research <a href="https://www.nowpensions.com/about-us/fairpensionsforall/gender-pensions-gap/" data-sf-ec-immutable=""><em>https://www.nowpensions.com/about-us/fairpensionsforall/gender-pensions-gap/</em></a><em> </em></p><p>⁵ PLSA Retirement Living Standards <a href="https://www.retirementlivingstandards.org.uk/" data-sf-ec-immutable=""><em>https://www.retirementlivingstandards.org.uk</em></a><em>&nbsp; </em></p><p>&nbsp;</p>

<div>It’s a good idea to log in to your myRPS account regularly to stay updated with your savings and make sure your pension is on track for retirement.&nbsp;&nbsp;</div><div><br></div><div>The tasks below will only take a couple of minutes and could make a big difference to your life after work.</div><div><br></div><h3>Spend time with your savings, register for an online account</h3><div>To get the most from your RPS membership, <a href="https://www.member.railwayspensions.co.uk/register" data-sf-ec-immutable="">register for an online account</a>. Your online account is a secure area of our site, all about you and your pension. When you <a href="https://www.member.railwayspensions.co.uk/login" data-sf-ec-immutable="">log into myRPS</a>, you can access our excellent range of tools to make retirement planning simpler and keep your pension on track.&nbsp;</div><div><br></div><div>When you log into your online account, you can:</div><ul><li>Request an estimate if you haven’t yet taken your benefits</li><li>See what level of income you want to aim for when you’re retired with our Retirement Budgeting Calculator</li><li>Use the Pension Planner (for members currently paying into the Defined Benefit sections), or the DC Retirement Modeller (for members of the IWDC Section) to see what income your RPS pension might give you when you take your benefits.&nbsp;</li></ul><div><br></div><h3>Stay connected, keep your contact details up to date</h3><div>If you’ve moved house, have a new phone number or changed email address, you’ll need to let us know straight away. We need to have the correct contact details to tell you any updates on your pension as soon as possible. You don’t want to miss out!</div><div><br></div><div>The quickest way to do this is through your myRPS account. To update your details, go to the ‘My details’ section and click ‘Contact details’. You’ll have 24/7 access to your online account, so you can make changes to your details at a time that suits you.&nbsp;</div><div><br></div><h3>Share the love and make your nominations</h3><div>Look after to those that matter to you by making or updating your nominations online.&nbsp;</div><div><br></div><div>If you die, a lump sum may be paid out if you have not yet taken your pension benefits (or took them within the last 5 years). By ‘nominating’ you tell us who you’d like the lump sum to go to. It’s important to keep your nominations up to date, particularly if your circumstances change.&nbsp;&nbsp;</div><div><br></div><div>Making a nomination is simple. You can make a nomination in the ‘My pension’ area of your online account. Alternatively you can download the <a href="46F44BF2-28A0-43CF-87FE-2827F61E2BC3">Nomination form</a>, complete it and return it to us using the Railpen address on the form.</div><div><br></div><div>If you don’t make a nomination, the payment could be delayed, so it’s worth taking a few minutes to nominate those who are special to you.</div><div><br></div><h3>Make a lasting commitment, keep checking in</h3><div>Many of us have imagined the lifestyle we want when we retire. Perhaps you’re planning a holiday or to treat yourself to a new car. By registering for an online account you’ve taken the first step towards planning for your life after work.&nbsp;</div><div><br></div><div>To help your savings stay on target, make a lasting commitment to log in and check on your savings as often as you can. Logging in regularly means you can track savings against your retirement goals and in line with your expectations for life after work.&nbsp;</div><div><br></div>

<p>If you are in a defined contribution (DC) arrangement, such as BRASS, AVC Extra or the IWDC Section, you can decide how the money you pay into these arrangements is invested. If you don’t want to choose investment funds, you will be invested in a default arrangement.</p><p>There are a range of investments for you to choose from. How these different investments perform, determines how much money is in your pension pot and whether its value goes up, or down. </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; white-space: inherit; word-spacing: normal">The first choice you need to make is how hands-on you want to be.</span><br></p><p>Do you want to:</p><ul><li>have your investment choices managed for you? We call this a <strong>Lifestyle</strong> strategy </li><li>make all of the investment decisions yourself, choosing from the range of investment funds on offer?</li><li>or a mix of both?</li></ul><p>If you can’t decide, you will automatically be invested in a Lifestyle strategy by default.</p><p>If you’re a defined benefit (DB) member, this information only applies to money you pay in to BRASS or AVC Extra. Your DB pension as a whole works differently and the benefits you receive do not depend on investment performance but on your length of service and salary. </p><h3><strong style="background-color: rgba(0, 0, 0, 0); color: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal">You can have your investments managed for you with a Lifestyle strategy</strong><br><span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal"></span></h3><p><span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal">If you don’t feel comfortable looking after your investments directly, you can opt for a more ‘hands-off’ approach and choose a ‘Lifestyle strategy’.</span><br><span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal"></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; white-space: inherit; word-spacing: normal">We call this ‘hands-off’ because there are fewer decisions for you to make at the outset. However, it’s still really important that you take an active interest in your investment choices and review them regularly. No investment is 100% safe and the appropriateness of the strategy you choose may change depending on your circumstances or world events.</span><br><span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal"></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; white-space: inherit; word-spacing: normal">Lifestyle strategies build your pension savings while you’re still working. All investments have risk, and the lifestyle strategies have been designed with risk and return expectations that reference many members’ retirement plans – for example, some members want to take all of their pension pot as cash at once; while others might want to keep some or all of their pot invested and only take smaller lumps of cash when it’s right for them.</span><br><span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal"></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; white-space: inherit; word-spacing: normal">There are 3 Lifestyle strategies offered by the RPS:</span><br></p><ul><li><strong>Annuity Purchase Lifestyle strategy</strong> – this is typically selected by members who want to convert their pension pot to a fixed-interest regular payment (an annuity) when they take their benefits.</li><li><strong>Flexible Drawdown Lifestyle strategy</strong> – this is typically selected by members who want to invest their pension pot post retirement and gradually draw down their pension pot as cash in the future and may leave some of the pot invested.</li><li><strong>Full Cash Withdrawal Lifestyle strategy</strong> – this is typically selected by members who want to take their pension pot as cash in one lump sum.<br></li></ul><p>You choose which of these 3 strategies you prefer. <br></p><p>Based on your chosen strategy, the money you pay into your pension will then be invested on your behalf by the Trustee.&nbsp; <br></p><p>In order to protect your pension pot, these investments move automatically as you get closer to your ‘target retirement age.’ Exactly how that happens depends on the Lifestyle strategy you have chosen. You can read more below, or in our <a href="/defined-benefit-members/saving-more-BRASS-AVC-Extra/brass-fund-choices">fund factsheets</a>. <br></p><p>While much of the work within a Lifestyle strategy happens automatically, there is still a lot for you to think about, not least:</p><ul><li>how you might want to use your DC pension pot when you retire. This could be as a one-off lump sum, as flexible payments though drawdown, or as fixed payments in an annuity. If you’re a DB member this will only apply to your funds in BRASS or AVC Extra, and not to your defined benefit pension overall. </li><li>how much risk you are prepared to take</li><li>Any changes you do make to your TRA will affect your investments including the size of your pot and the risk profile of your investment.<br></li></ul><p>The 3 Lifestyle strategies offered by the RPS are designed to meet these preferences as much as possible. But remember, the Trustee invests your pension contributions in accordance with the strategy you’ve chosen so it’s vital you keep track of your pension pot to make sure your investment choices remain appropriate. <br></p><h3><strong>How a Lifestyle strategy works </strong><br></h3><p>Individual investments which are grouped together are called a fund. <br></p><p>Each of the 3 Lifestyle strategies offered by the RPS is made up of 3 separate funds:</p><ul><li>Long Term Growth Fund</li><li>Corporate Bond Fund </li><li>UK Government Fixed Interest Bond Fund<br></li></ul><p>Each of these funds has a different level of risk.&nbsp; <br></p><p>How your pension pot is split between the funds depends on the Lifestyle strategy you have chosen (by selection or by taking the default investment strategy) and when you are planning to take your benefits. This is known as your Target Retirement Age (TRA). &nbsp;<br></p><p>Your investment allocation is reviewed and aligned to your chosen Lifestyle strategy (depending on your age), around 4 times a year. You don’t have to do anything, because all of this happens automatically. If you are taking your benefits, we will not exclude you from this exercise unless you have returned all required documentation to initiate your benefit request. <br></p><p>Around 10 years before your TRA, your money will start to move from high-risk funds – with potentially higher growth and higher losses – to less risky ones. &nbsp;Of course the risk of any strategy also needs to be considered in the context of your retirement plans. This is shown in the illustration below. </p><img src="https://cdn.rpmi.co.uk/mp-sitefinity-prod/images/default-source/old-site-images/infographics/investment-de-risking-graph.jpg?sfvrsn=d215e7cb_1" alt="Graph showing how investments in a Lifestyle strategy move from adventurous or higher risk funds to more cautious or lower risk funds as you approach your target retirement age (TRA)"><p><br></p><p>Exactly how much remains invested in the higher-risk funds, depends on which Lifestyle strategy you have chosen. </p><p>While the risk classification of each investment fund has been carefully considered, it is external economic factors that will ultimately determine the extent to which your investment goes up or down. <br></p><p>You can find more information about Lifestyle strategies in our <a href="" data-sf-ec-immutable="" data-sf-marked="">fund factsheets</a><br></p><h3><strong>You can manage your investments yourself, choosing from a range of funds </strong><br></h3><p>If you feel comfortable looking after your investments and want to be more hands-on, you can manage your investments by yourself. <br></p><p>You decide:</p><ul><li>which funds to invest in, based on a defined list. </li><li>how much of your pot you want to invest in each fund.<br></li></ul><p>There are 7 funds to choose from:</p><ul><li>Corporate Bond Fund&nbsp; <br></li><li>Deposit Fund </li><li>Global Equity Fund</li><li>Long-Term Growth Fund&nbsp; &nbsp;</li><li>Socially Responsible Equity Fund&nbsp;</li><li>UK Government Fixed-Interest Bond Fund</li><li>UK Government Index-Linked Bond Fund<br></li></ul><p>Each fund has a different objective and risk rating, so you can choose the one that’s right for you. For example, the lowest risk rated fund is the Deposit Fund but there are a range of medium and high risk funds too. Please check your lifestyle or self-selected investment options to ensure the risk rating meets your appetite. <br></p><p>Alongside these 7 funds, you can also invest in any of the 3 Lifestyle strategies mentioned above.<br></p><p>You can find out about the investment funds, including their risk ratings, in the <a href="/defined-benefit-members/saving-more-BRASS-AVC-Extra/brass-fund-choices">fund factsheets</a>.<br></p><p>If you choose this hands-on investment funds approach, your money will not automatically move from high to lower risk funds as you get closer to retirement. That means it’s up to you to decide if, and when that’s necessary, and to make the investment fund switch yourself. <br></p><p><strong>You can change your investment choices at any time </strong><br></p><p>To change the strategies or funds you’re invested in now, or where you want to invest in the future, <a href="https://member.railwayspensions.co.uk/login" data-sf-ec-immutable="">log into your myRPS account</a>. Then, go to the 'My pension' section and 'Funds' page.<br></p><p>If you're in a Lifestyle strategy you can also check, and change, your Target Retirement Age (TRA) in your myRPS account. <br></p><p>Any changes you do make to your TRA may affect your investments including the allocation of your pot between investment funds and the risk profile of your investment. <br></p><p>Make sure you have read all of the information available on the website and try out the Pension Planner (DB members) or Retirement Modeller (DC members) to help you understand the consequences before you act. <br></p><p><strong>You can get help deciding what’s right for you </strong><br></p><p>You can find more information about your investment options on the <a href="/iwdc-members/managing-investments/fund-choices">my investment choices page</a>.<br></p><p>If you need more support, you can also get financial advice. <br></p><p>Our advice partner Liverpool Victoria (LV) offers members financial advice at a discounted rate. You can contact LV on 0800 023 4187. You can also find Independent Financial Advisers in your local area at Unbiased.co.uk.&nbsp;<span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal"></span></p>

<p>Switching jobs means you’re probably going to leave a pension behind. Save yourself the hassle by keeping track of all your pensions as your career progresses.</p><p>Staying connected with your old pension plans could make your life much easier when you come to retire as you’d know exactly how much you’ve got to live on and where that money is.</p><p>Your financial diligence will pay off in the long run so here are few tips on how to make sure you won’t lose track of your retirement income and have it all at hand:</p><p>&nbsp;</p><p><strong>Keep checking your online account</strong></p><p>Your online pension account is your go-to place for up-to-date information on your pension. Not all pension schemes offer this but if you’ve paid into the Railways Pension Scheme (RPS), you’ll have one. Even if you move jobs and stop paying into a pension plan, you’ll still have access to your online pension account. The only difference would be that you’d be classed as a ‘preserved’ or ‘deferred’ member rather than an ‘active’ one who is actively contributing to that pension plan. As a preserved member, you may have a restricted view of some of the tools and information that were available to you as an active member. However, the essential information about your pension like its value and performance should be available to you. If you are a preserved member of the RPS and have BRASS and/or IWDC benefits, it is important to actively check and manage your investment choices. You can do this from <a href="https://member.railwayspensions.co.uk/login" data-sf-ec-immutable="">your online account</a>. </p><p>It’s good to get into the habit of checking your account every few months or so – a reminder on your phone could be an ideal solution for this. </p><p>&nbsp;</p><p><strong>Keep old pension providers in the loop of any changes to your contact details</strong></p><p>This is something many of us are guilty of not doing on time or not doing at all. Equally this quick and simple job could make a huge difference to both you and your old pension provider. Every time you move house, change your email address or get a new phone number, you should tell your old pension providers. That way you’d ensure they can get in touch with you should there is anything you need to know about your pension plan with them. If you’ve paid into the RPS, you can easily update your details when you log into <a href="https://member.railwayspensions.co.uk/login" data-sf-ec-immutable="">your online account</a> &nbsp;– it takes less than a minute. </p><p>Reviewing your details on a regular basis, for example every three to six months, to ensure they are correct, might be a good idea.</p><p>&nbsp;</p><p><strong>Retain old paperwork</strong></p><p>Keep hold of any letters or other correspondence you’re received from your old pension. They may come in handy when you come to retire and having them somewhere in the house means you’ll never lose track of your old pensions. It may be worth starting a folder to help you keep them all in one place. </p><p>&nbsp;</p><p><strong>Keep an eye on your old pension plan’s website </strong></p><p>A quick scan of your old pension plans’ websites every now and then might help you stay in the loop of any news and updates from your old pension providers. Plus, it means you won’t miss out on any new pieces of functionality or tools they’ve introduced that could help with your retirement planning when the time comes.</p><p>&nbsp;</p><p><strong>Connect with your old pension on social media</strong></p><p>Check if your old pension providers are on social media and connect with them. That way, you’ll get to see bite-size snippets of all the important updates about your pension with the option to find out more about the ones that are of interest to you by clicking on the relevant links. </p><p>&nbsp;</p><p><strong>Having a personal budget plan? Count in your old pension</strong></p><p>Planning! Dubbed by many as a true game changer when it comes to personal finances and saving, it’s an equally helpful habit to get into when it comes to keeping track of your pension plans. No matter what program you use for your budget planning, you could always add an extra tab, column or sheet and save all the important information about your old pension plans there. Or if you’re a traditionalist and prefer the good old pen and paper, our suggestion of retaining your old paperwork might work best for you.&nbsp; </p><p>&nbsp;</p><p><strong>Transferring your pension</strong></p><p>It sounds tempting to have all your old workplace pensions under one roof but it is highly advisable you seek independent financial advice if you are thinking of going down that route. This is particularly valid if you’re thinking of transferring defined benefit pension savings to a defined contribution arrangement. This is because the value of a defined contribution pension is not a set amount and may go up as well as down.</p><p>It is a legal requirement to take advice if you are thinking of transferring defined benefit pension worth over £30,000. </p><p>For members of the RPS, we have prepared some <a href="/pension-essentials/transferring-my-pension">useful information on transferring</a> and a <a href="/knowledge-hub/help-and-support/video-library">handy video guide</a> that explain it all in simple terms.<br></p>

<div><p>&nbsp;</p><p>With nearly 40 years in the railway industry and over 20 years’ involvement in the railway pension schemes, Christine’s years in the industry have given her an invaluable understanding of your priorities and pension needs, to help you get the best retirement outcome.&nbsp;</p></div><div><br></div><div><p>We asked Christine to tell us what she enjoys most about her role and to share more with us about her experience in the industry.&nbsp;</p></div><div><br></div><div><strong>Christine, you bring a wealth of experience to your new role. Can you briefly explain what your background is and how you got to work in financial services and in pensions?</strong></div><div><br></div><div>During my railway career I have been lucky enough to have developed a wide range of skills, met and worked with staff in many different disciplines and at all levels of the rail industry.&nbsp;</div><div><br></div><div>I started as a ticket office and admin clerk, was a staff representative, a BR management trainee, worked in HR in engineering, undertook various project management roles and after privatisation joined the South West Trains franchise. Here, my roles included HR and payroll systems, pensions management, internal audit and 20 years as an employer representative on the Pensions Committee. I supported with passenger assistance in service disruption and special events. I also had roles in industry groups for pensions and rail staff travel.</div><div><br></div><div><p>This has given me a good understanding of the workings of the rail industry and the part pensions play in it.</p></div><div><p>&nbsp;</p></div><div><p><strong>What are your top three priorities as a Chair of the Trustee?</strong></p></div><p>1. Complete valuations for all sections to ensure we can pay pensions when due.</p><p>2. Continue to improve member support, online education and tools.</p><p>3. Ensure the Scheme carefully monitors risks, particularly within the current global financial markets, and we can act on any opportunities that present themselves.</p><p><strong style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal">&nbsp;</strong></p><p><strong style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal">What do you enjoy most, or what are you most proud of in your job?</strong></p><div><p>I believe the schemes can and do make a difference in the lives of thousands of people in the rail industry and their families – it is great to be part of something that seeks to do that for generations to come.</p><p>&nbsp;</p></div><div><strong>Can you describe what a typical working day looks like for you?</strong></div><div><br></div><div>No one day is the same which makes the role both challenging and rewarding.&nbsp;</div><div><br></div><div>With so much happening in the world that can impact financial markets together with continual change to pension regulations, there is always something new for Trustees to understand and consider.</div><div><p><strong style="background-color: rgba(0, 0, 0, 0); color: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal">&nbsp;</strong></p><p><strong style="background-color: rgba(0, 0, 0, 0); color: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal">What would you say to someone who is thinking about becoming a Pension Trustee in future?</strong><br></p></div><div>A lack of pension knowledge is not a barrier to becoming a Trustee. You will get support and training to understand the world of pensions and investments.</div><div><br></div><div>The key to good Trustee decision is in the diversity of skills, experience, knowledge and the perspective each Trustee brings - as well as their passion. Trusteeship is not for everyone and does take a lot of commitment in terms of personal development, preparation and meetings. However, you will be making a meaningful difference to the future benefits of your colleagues in the rail industry.</div><div><br></div><div>You can learn more about the role and responsibilities of The Trustee on our website in ‘The Trustee’ section of ‘Joining the RPS’.&nbsp;</div><div><p>&nbsp;</p><p>&nbsp;</p><p>&nbsp;</p></div>

<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; white-space: inherit; word-spacing: normal">What happens to your pension when you die?</span><br></h3><p>The death benefits that may be payable from your pension are considered separately to your will, and they depend on:</p><ul><li>which type of Scheme and Section you belong to</li><li>the options you select, and </li><li>whether you’re retired or still working when you die </li></ul><p><span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal">You’ll find a brief guide below, but please refer to your Member Guide for more specific details of your own death benefits. Your Member Guide can be found under ‘My library’ when you log into your <a href="/my-rps">myRPS account</a>.</span><br></p><h4><strong></strong><strong>1. Death benefits for retired, defined benefit (DB) members</strong></h4><p><strong>&nbsp;</strong>If you’re retired, and you’re a DB member of the Railways Pension Scheme (RPS), your <strong>death benefits</strong> could include: </p><ul><li>Spouse’s pension – payable to a spouse, civil partner or same-sex spouse you were living with or married to at the date of your death. For many members this would be worth around half your basic pension. </li><li>Dependants’ pension – paid to a person who depended on you financially for 2 years prior to your death. The value may vary depending on circumstances and will reduce if the eligible dependent is younger than you by 10 years or more. </li><li>Children’s pension – at least the 2 youngest eligible children normally receive pensions until they are 18. The youngest child will typically receive 50% of the eligible spouse’s pension and the second child will receive 25%. If an eligible child continues in full-time education after they reach 18, the pension may still be paid, subject to Trustee or Committee agreement. If a child is disabled, the pension may be payable for life, if the Trustee agrees.<br></li></ul><p>There may also be <strong>a lump sum pay-out</strong> to your beneficiaries. The exact amount payable would depend on the amount of benefit you have taken since your retirement. If you have been receiving your pension for 5 years or more it’s unlikely any lump sum will be paid. <br></p><p>To help speed up the process, it’s important that you complete a Nomination form to let the Trustee know who you'd like the lump sum to be paid to. This can be done quickly and easily by <a href="/login">logging into your myRPS account</a> and going to ‘My Nominations’ in the ‘My Pension’ section of your member home page. Otherwise, it could go to the wrong person, or the payment may be delayed, which could result in tax being payable.<br></p><h4 data-list="2" data-level="1"><strong>2.&nbsp;</strong><strong>Death benefits for retired, industry wide, defined contribution (IWDC) members </strong><br></h4><p>If you’re a retired IWDC member, then your death benefits will depend almost entirely on how you have taken your pension. For example:<br></p><ul><li>If you have a single annuity, then all payments will stop when you die. That is unless you took a guarantee period, such as 5 years, in which case payments can continue until the end of that time or will be paid as a lump sum.&nbsp; </li><li>If you have drawdown, the remaining money could be paid out tax free if you die before the age of 75. If you’re over 75, then it is likely to be added to the beneficiaries’ other income and taxed. </li></ul><p>For more information, you would need to speak to your chosen annuity or drawdown provider, as these benefits are not payable directly by the IWDC scheme. <br></p><h4 data-list="2" data-level="1"><strong>3.&nbsp;</strong><strong>Death benefits for active, or preserved, DB members</strong><br></h4><p>If you’re an active, or preserved, defined benefit member and die whilst you’re still working, your pension could pay out a lump sum. If you’re younger than 75 when you die, this payment would normally be tax-free for your beneficiaries. Death benefits may also include a pension to either a spouse, civil partner or dependent child (as in point 1 above) but this would be taxed at their marginal rate of income tax. <br></p><h4 data-list="2" data-level="1"><strong>4.&nbsp;</strong><strong>Death benefits for active, or preserved, IWDC members</strong><br></h4><p>If you’re an active, or preserved, IWDC member, and die before your 75th birthday whilst you’re still working, and haven’t started drawing your pension, it can be passed to your beneficiaries tax-free.<br></p><h3>How can your friends/family claim? &nbsp;<br></h3><p>Before any claims can be made, the Scheme administrator, Railpen, will need to be notified of your death. <br></p><p>If you were still paying contributions into the RPS when you die, your employer will notify Railpen automatically. <br></p><p>If you had already stopped paying into your pension when you die, your death needs to be reported to Railpen directly. <br></p><p>This can be done by: <br></p><ul><li>Calling <strong>0800 012 1117</strong> and selecting Option 2: Bereavement. Or calling <strong>+44 1325 342 800</strong> internationally</li><li>Emailing <a href="mailto:csu@railpen.com"><strong>csu@railpen.com</strong></a><strong> </strong>or </li><li>Writing to Railpen at <strong>PO Box 300, Darlington, DL3 6YJ</strong><br></li></ul><p>For security reasons, Railpen will need to confirm at least three of the following: <br></p><ul><li>Your full name</li><li>Your date of birth</li><li>Your Pension reference number and/or National Insurance number</li><li>Your date of death</li><li>The name and address of whoever we should contact about your pension moving forward. <br></li></ul><p>Please ensure your friends/family are aware of these requirements. And know what they need to do in the event of your death.&nbsp; They can find more information <a href="/knowledge-hub/help-and-support/reporting-a-death">on the reporting a death page </a> <br></p><p>Once we know that you have died, we will write directly to whoever is dealing with your affairs. For example, this may be your next of kin or the executor of your estate. They will be asked to complete and return some forms. These forms will help us to identify anyone who might benefit from your pension.<br></p><p>Then, we will contact any potential beneficiaries to explain what they may be entitled to and what they need to do next. <br></p><p>Once we have received the information needed and proof of ID from all the potential beneficiaries, your death benefits will be considered by the Trustee. In line with scheme rules, the Trustee will decide where any death benefits should be paid.&nbsp; <br></p><p>All of this takes time, so it may take quite a while for any benefits to be paid following your death. <br></p><p>Our priority is making sure your money goes to the right people. We’ll do everything we can to make that process as quick and easy as possible for everyone involved. And our team will be on hand to help every step of the way.&nbsp;</p>