Blog
A deep-dive into a variety of pension topics to help you understand and learn more about your pension and the Scheme.
13/5/2022
Editorial
<p>Deciding when to retire isn't always easy. And there are a lot of factors that can come into play:</p><ul><li>When can I start getting my pension?</li><li>Can I really afford to stop work yet?</li><li>Am I ready for the lifestyle change?</li></ul><p>You'll find more information to help you make the right decisions for you in the I'm planning to take my pension sections of the website and in the summaries below.<br><br></p><h3>Understanding when you can start taking your pension </h3><p>Most RPS members will have a Normal Retirement Age, also known as NRA, of between 60 and 65 years old. This can differ depending on the section you're a member of. <br><br>If
you're unsure what your NRA is, you can check it in your Member Guide. This is available in the Library section once you've logged into your <a href="/login">online account</a>. <br><br>Keep in mind that your NRA is likely to be different to the age for claiming
your State Pension. This is because your NRA is set by the Scheme, while the State Pension age is set by the government and is based entirely on when you were born. You can check your State Pension age on the <a href="https://www.gov.uk/state-pension-age" target="_blank" data-sf-ec-immutable="">government website.</a><br><br>Your NRA
may also differ from scheme to scheme and from section to section. If you're a member of another scheme, such as previous workplace pensions or private pensions, you'll need to contact each provider directly, or refer to the relevant paperwork to find
out your NRA for those schemes. <br><br>If you have preserved pensions in other sections of the RPS, please check your <a href="/login">myRPS account </a>for more details on those.<br><br>In some circumstances, you may be able to start taking your RPS pension
earlier or later than your NRA. If you're a DB member, go to the <a href="/defined-benefit-members">dedicated DB section</a> of this website, or if you're a IWDC member, go to the <a href="/iwdc-members">dedicated IWDC section</a>.<br><br><br></p><h3>Working out if you can afford to stop work</h3><p>Working out whether
or not you can afford to stop work will depend primarily on 3 things:<br><br><strong>1. How much your retirement is likely to cost</strong><br><br>To work out how much your retirement is likely to cost, you can use the Retirement Living Standards, or RLS, as a
benchmark. The RLS was created by the Pensions and Lifetime Association, also known as the PLSA, to show how much you may need each year in order to fund a 'minimum', 'moderate' or 'comfortable' lifestyle. <br><br>You can find out more on the <a href="https://www.retirementlivingstandards.org.uk/" target="_blank" data-sf-ec-immutable="">RLS website</a>, but as
a rough guide, they suggest the following:</p><p><span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit"></span><img src="https://cdn3.railpen.com/mp-sitefinity-prod/images/default-source/infographics-(current)/rps-retirement-living-standards_v04_summary-matrix.svg?sfvrsn=4b9611a_3" alt="Summary showing how much you might need when you retire"></p><p>A <a href="/knowledge-hub/help-and-support/retirement-budgeting-calculator">retirement budgeting calculator</a> is also available on this website, which takes into account the RLS and lets you add other individual costs that are tailored to you. This includes your household bills, travel expenses, leisure costs and the money you
spend on others. Combined, this will give you a personalised estimate of how much your retirement lifestyle may cost each year. <br><br><strong>2. How much income you're likely to have coming in</strong><br><br>Once you know how much you're likely to
spend in retirement, you can then work out whether you're likely to have enough money coming in to cover those costs. You'll need to take into account all your possible sources of income. These can include:</p><ul><li>Your workplace pension — you can check your Annual Benefit Statement or log into your online account for an estimate of how much your pension will pay out</li><li>Your State Pension — the amount you get is set by the government. You can <a href="https://www.gov.uk/state-pension-age" target="_blank" data-sf-ec-immutable="">request an estimate online</a> on the website</li><li>Other pensions — such as a private pension or pensions linked to previous employment. You'll need to speak to each of the providers individually for estimates on those accounts. If you've lost their contact details, the Pensions Tracing Service
may be able to help. It's a free, Government-backed <a href="http://www.gov.uk/find-pension-contact-details" target="_blank" data-sf-ec-immutable="">service available online</a> and over the phone on 0800 731 0193. Other companies offer a similar service but many charge a fee</li><li>Savings and investments — if you have savings outside of your pension, get those statements from your bank or other provider</li></ul><p><strong>3. Whether your spending and income will match up</strong><br><br>If after following steps 1 and 2, you're worried that your income in retirement won't cover your costs, there are things you can do:</p><ul><li>Get advice — Liverpool Victoria, or LV, has been chosen as the official partner to give RPS members access to financial advice. LV can be contacted on 0800 023 4187. You can also find an Independent Financial Adviser, or IFA, in your area on
the <a href="http://www.unbiased.co.uk" target="_blank" data-sf-ec-immutable="">Unbiased website</a> — just be sure to go with someone who has knowledge and experience in pensions, rather than a generic financial adviser. </li><li>Consider topping up your pension pot — think about paying more into your pension before you stop work if you can. This is known as making Additional Voluntary Contributions (AVCs). It's tax-free up to certain limits </li><li>Think about changing your retirement age — you can delay taking your pension, giving you more time to increase it. This is not a decision to be taken lightly and we suggest you speak with a Financial Adviser first. </li><li>Clear your debts — if possible, try to pay off any debts you owe before you retire </li></ul><p>There are planning tools available to help you see the impact of making some of these changes and help guide you towards your retirement goals. For DB members, this includes a Pension Planner, and for IWDC members, there's a Retirement Modeller. <a href="/login">Log into your online account</a> to give them a try. <br><br></p><h3>Preparing for the lifestyle change</h3><p>The move from working to retirement can often have an emotional impact, as well as a financial one. <br><br>For those preparing to retire, the
British Heart Foundation has a few <a href="https://www.bhf.org.uk/informationsupport/heart-matters-magazine/wellbeing/retirement/retirement-tips" target="_blank" data-sf-ec-immutable="">top tips</a> for making the mental adjustment. This includes:<br><br></p><ul><li>Getting your finances in order</li><li>Winding down gently</li><li>Developing a new routine</li><li>Making a list of the things you'd like to achieve, and;</li><li>Seeking social support</li></ul><p>You'll find further specialist support available from a range of railway-based organisations, including:</p><ul><li><a href="http://www.btpf.org/" target="_blank" data-sf-ec-immutable="">British Transport Pensioners Federation (BTPF)</a>, which protects and maintains the wellbeing of Railway people in retirement</li><li><a href="https://www.railwaybenefitfund.org.uk/" target="_blank" data-sf-ec-immutable="">Railway Benefit Fund (RBF)</a>, an independent charity that supports railway workers and their families through a variety of issues</li><li><a href="https://railwaymission.org/" target="_blank" data-sf-ec-immutable="">The Railway Mission</a>, which operates a chaplaincy service to staff from all sectors and levels of the railway industry</li></ul><p>There's also <a href="https://www.ageuk.org.uk/" target="_blank" data-sf-ec-immutable="">Age UK,</a> which is the UK's largest charity for older people. They provide many local services, aimed at inspiring, supporting and enabling people to get the most from life, and can offer a wide range of information and advice. </p>
<p>Deciding when to retire isn't always easy. And there are a lot of factors that can come into play:</p><ul><li>When can I start getting my pension?</li><li>Can I really afford to stop work yet?</li><li>Am I ready for the lifestyle change?</li></ul><p>You'll find more information to help you make the right decisions for you in the I'm planning to take my pension sections of the website and in the summaries below.<br><br></p><h3>Understanding when you can start taking your pension </h3><p>Most RPS members will have a Normal Retirement Age, also known as NRA, of between 60 and 65 years old. This can differ depending on the section you're a member of. <br><br>If
you're unsure what your NRA is, you can check it in your Member Guide. This is available in the Library section once you've logged into your <a href="/login">online account</a>. <br><br>Keep in mind that your NRA is likely to be different to the age for claiming
your State Pension. This is because your NRA is set by the Scheme, while the State Pension age is set by the government and is based entirely on when you were born. You can check your State Pension age on the <a href="https://www.gov.uk/state-pension-age" target="_blank" data-sf-ec-immutable="">government website.</a><br><br>Your NRA
may also differ from scheme to scheme and from section to section. If you're a member of another scheme, such as previous workplace pensions or private pensions, you'll need to contact each provider directly, or refer to the relevant paperwork to find
out your NRA for those schemes. <br><br>If you have preserved pensions in other sections of the RPS, please check your <a href="/login">myRPS account </a>for more details on those.<br><br>In some circumstances, you may be able to start taking your RPS pension
earlier or later than your NRA. If you're a DB member, go to the <a href="/defined-benefit-members">dedicated DB section</a> of this website, or if you're a IWDC member, go to the <a href="/iwdc-members">dedicated IWDC section</a>.<br><br><br></p><h3>Working out if you can afford to stop work</h3><p>Working out whether
or not you can afford to stop work will depend primarily on 3 things:<br><br><strong>1. How much your retirement is likely to cost</strong><br><br>To work out how much your retirement is likely to cost, you can use the Retirement Living Standards, or RLS, as a
benchmark. The RLS was created by the Pensions and Lifetime Association, also known as the PLSA, to show how much you may need each year in order to fund a 'minimum', 'moderate' or 'comfortable' lifestyle. <br><br>You can find out more on the <a href="https://www.retirementlivingstandards.org.uk/" target="_blank" data-sf-ec-immutable="">RLS website</a>, but as
a rough guide, they suggest the following:</p><p><span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit"></span><img src="https://cdn3.railpen.com/mp-sitefinity-prod/images/default-source/infographics-(current)/rps-retirement-living-standards_v04_summary-matrix.svg?sfvrsn=4b9611a_3" alt="Summary showing how much you might need when you retire"></p><p>A <a href="/knowledge-hub/help-and-support/retirement-budgeting-calculator">retirement budgeting calculator</a> is also available on this website, which takes into account the RLS and lets you add other individual costs that are tailored to you. This includes your household bills, travel expenses, leisure costs and the money you
spend on others. Combined, this will give you a personalised estimate of how much your retirement lifestyle may cost each year. <br><br><strong>2. How much income you're likely to have coming in</strong><br><br>Once you know how much you're likely to
spend in retirement, you can then work out whether you're likely to have enough money coming in to cover those costs. You'll need to take into account all your possible sources of income. These can include:</p><ul><li>Your workplace pension — you can check your Annual Benefit Statement or log into your online account for an estimate of how much your pension will pay out</li><li>Your State Pension — the amount you get is set by the government. You can <a href="https://www.gov.uk/state-pension-age" target="_blank" data-sf-ec-immutable="">request an estimate online</a> on the website</li><li>Other pensions — such as a private pension or pensions linked to previous employment. You'll need to speak to each of the providers individually for estimates on those accounts. If you've lost their contact details, the Pensions Tracing Service
may be able to help. It's a free, Government-backed <a href="http://www.gov.uk/find-pension-contact-details" target="_blank" data-sf-ec-immutable="">service available online</a> and over the phone on 0800 731 0193. Other companies offer a similar service but many charge a fee</li><li>Savings and investments — if you have savings outside of your pension, get those statements from your bank or other provider</li></ul><p><strong>3. Whether your spending and income will match up</strong><br><br>If after following steps 1 and 2, you're worried that your income in retirement won't cover your costs, there are things you can do:</p><ul><li>Get advice — Liverpool Victoria, or LV, has been chosen as the official partner to give RPS members access to financial advice. LV can be contacted on 0800 023 4187. You can also find an Independent Financial Adviser, or IFA, in your area on
the <a href="http://www.unbiased.co.uk" target="_blank" data-sf-ec-immutable="">Unbiased website</a> — just be sure to go with someone who has knowledge and experience in pensions, rather than a generic financial adviser. </li><li>Consider topping up your pension pot — think about paying more into your pension before you stop work if you can. This is known as making Additional Voluntary Contributions (AVCs). It's tax-free up to certain limits </li><li>Think about changing your retirement age — you can delay taking your pension, giving you more time to increase it. This is not a decision to be taken lightly and we suggest you speak with a Financial Adviser first. </li><li>Clear your debts — if possible, try to pay off any debts you owe before you retire </li></ul><p>There are planning tools available to help you see the impact of making some of these changes and help guide you towards your retirement goals. For DB members, this includes a Pension Planner, and for IWDC members, there's a Retirement Modeller. <a href="/login">Log into your online account</a> to give them a try. <br><br></p><h3>Preparing for the lifestyle change</h3><p>The move from working to retirement can often have an emotional impact, as well as a financial one. <br><br>For those preparing to retire, the
British Heart Foundation has a few <a href="https://www.bhf.org.uk/informationsupport/heart-matters-magazine/wellbeing/retirement/retirement-tips" target="_blank" data-sf-ec-immutable="">top tips</a> for making the mental adjustment. This includes:<br><br></p><ul><li>Getting your finances in order</li><li>Winding down gently</li><li>Developing a new routine</li><li>Making a list of the things you'd like to achieve, and;</li><li>Seeking social support</li></ul><p>You'll find further specialist support available from a range of railway-based organisations, including:</p><ul><li><a href="http://www.btpf.org/" target="_blank" data-sf-ec-immutable="">British Transport Pensioners Federation (BTPF)</a>, which protects and maintains the wellbeing of Railway people in retirement</li><li><a href="https://www.railwaybenefitfund.org.uk/" target="_blank" data-sf-ec-immutable="">Railway Benefit Fund (RBF)</a>, an independent charity that supports railway workers and their families through a variety of issues</li><li><a href="https://railwaymission.org/" target="_blank" data-sf-ec-immutable="">The Railway Mission</a>, which operates a chaplaincy service to staff from all sectors and levels of the railway industry</li></ul><p>There's also <a href="https://www.ageuk.org.uk/" target="_blank" data-sf-ec-immutable="">Age UK,</a> which is the UK's largest charity for older people. They provide many local services, aimed at inspiring, supporting and enabling people to get the most from life, and can offer a wide range of information and advice. </p>
Blog
Are you ready to retire?
Deciding when to retire isn't always easy. Here you can find information to help you make the right decision for your circumstances.
Deciding when to retire isn't always easy. And there are a lot of factors that can come into play:
- When can I start getting my pension?
- Can I really afford to stop work yet?
- Am I ready for the lifestyle change?
You'll find more information to help you make the right decisions for you in the I'm planning to take my pension sections of the website and in the summaries below.
Understanding when you can start taking your pension
Most RPS members will have a Normal Retirement Age, also known as NRA, of between 60 and 65 years old. This can differ depending on the section you're a member of.
If
you're unsure what your NRA is, you can check it in your Member Guide. This is available in the Library section once you've logged into your online account.
Keep in mind that your NRA is likely to be different to the age for claiming
your State Pension. This is because your NRA is set by the Scheme, while the State Pension age is set by the government and is based entirely on when you were born. You can check your State Pension age on the government website.
Your NRA
may also differ from scheme to scheme and from section to section. If you're a member of another scheme, such as previous workplace pensions or private pensions, you'll need to contact each provider directly, or refer to the relevant paperwork to find
out your NRA for those schemes.
If you have preserved pensions in other sections of the RPS, please check your myRPS account for more details on those.
In some circumstances, you may be able to start taking your RPS pension
earlier or later than your NRA. If you're a DB member, go to the dedicated DB section of this website, or if you're a IWDC member, go to the dedicated IWDC section.
Working out if you can afford to stop work
Working out whether
or not you can afford to stop work will depend primarily on 3 things:
1. How much your retirement is likely to cost
To work out how much your retirement is likely to cost, you can use the Retirement Living Standards, or RLS, as a
benchmark. The RLS was created by the Pensions and Lifetime Association, also known as the PLSA, to show how much you may need each year in order to fund a 'minimum', 'moderate' or 'comfortable' lifestyle.
You can find out more on the RLS website, but as
a rough guide, they suggest the following:
/rps-retirement-living-standards_v04_summary-matrix.svg?sfvrsn=4b9611a_3)
A retirement budgeting calculator is also available on this website, which takes into account the RLS and lets you add other individual costs that are tailored to you. This includes your household bills, travel expenses, leisure costs and the money you
spend on others. Combined, this will give you a personalised estimate of how much your retirement lifestyle may cost each year.
2. How much income you're likely to have coming in
Once you know how much you're likely to
spend in retirement, you can then work out whether you're likely to have enough money coming in to cover those costs. You'll need to take into account all your possible sources of income. These can include:
- Your workplace pension — you can check your Annual Benefit Statement or log into your online account for an estimate of how much your pension will pay out
- Your State Pension — the amount you get is set by the government. You can request an estimate online on the website
- Other pensions — such as a private pension or pensions linked to previous employment. You'll need to speak to each of the providers individually for estimates on those accounts. If you've lost their contact details, the Pensions Tracing Service may be able to help. It's a free, Government-backed service available online and over the phone on 0800 731 0193. Other companies offer a similar service but many charge a fee
- Savings and investments — if you have savings outside of your pension, get those statements from your bank or other provider
3. Whether your spending and income will match up
If after following steps 1 and 2, you're worried that your income in retirement won't cover your costs, there are things you can do:
- Get advice — Liverpool Victoria, or LV, has been chosen as the official partner to give RPS members access to financial advice. LV can be contacted on 0800 023 4187. You can also find an Independent Financial Adviser, or IFA, in your area on the Unbiased website — just be sure to go with someone who has knowledge and experience in pensions, rather than a generic financial adviser.
- Consider topping up your pension pot — think about paying more into your pension before you stop work if you can. This is known as making Additional Voluntary Contributions (AVCs). It's tax-free up to certain limits
- Think about changing your retirement age — you can delay taking your pension, giving you more time to increase it. This is not a decision to be taken lightly and we suggest you speak with a Financial Adviser first.
- Clear your debts — if possible, try to pay off any debts you owe before you retire
There are planning tools available to help you see the impact of making some of these changes and help guide you towards your retirement goals. For DB members, this includes a Pension Planner, and for IWDC members, there's a Retirement Modeller. Log into your online account to give them a try.
Preparing for the lifestyle change
The move from working to retirement can often have an emotional impact, as well as a financial one.
For those preparing to retire, the
British Heart Foundation has a few top tips for making the mental adjustment. This includes:
- Getting your finances in order
- Winding down gently
- Developing a new routine
- Making a list of the things you'd like to achieve, and;
- Seeking social support
You'll find further specialist support available from a range of railway-based organisations, including:
- British Transport Pensioners Federation (BTPF), which protects and maintains the wellbeing of Railway people in retirement
- Railway Benefit Fund (RBF), an independent charity that supports railway workers and their families through a variety of issues
- The Railway Mission, which operates a chaplaincy service to staff from all sectors and levels of the railway industry
There's also Age UK, which is the UK's largest charity for older people. They provide many local services, aimed at inspiring, supporting and enabling people to get the most from life, and can offer a wide range of information and advice.
