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A deep-dive into a variety of pension topics to help you understand and learn more about your pension and the Scheme.
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A deep-dive into a variety of pension topics to help you understand and learn more about your pension and the Scheme.
Our blogs will give you information, tips, insights and guidance to help you get to know your pension and support you on your journey to retirement.
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.
So what are you waiting for? These 10-minute tasks will help you manage your pension during half-time.
Get a head start on planning for your future with your myRPS account. If you haven’t already, register for a myRPS account to make the most of your membership. Over 100,000 of our members are already registered online, you don’t want to miss out!
With an online account you can:
… and plenty more to help you stay ahead of the game.
Your member website is packed with information to help you stay on the ball with your retirement planning.
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.
On your website there’s valuable guidance to help you understand how and when to take your pension, including:
There’s also handy guides on pension topics to help you give planning for life after work your best shot.
On our YouTube channel you’ll find a range of informative videos to help you get to grips with your pension, all in one place.
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.
We have videos on over 20 pension-related topics. You’ll also find playlists on:
As with your myRPS account, you can access our YouTube channel wherever and whenever you need to.
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!
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.
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.
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, log into your myRPS account.
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!
14/6/2021
Author: Editorial
<p>You may also need to re-register even if you were signed up to the old site. Here’s how to do it.</p><p>Before you start make sure you have the following to hand:</p><ul><li>Pension Reference Number </li><li>National Insurance number</li><li>Email address </li></ul><p>Then follow the steps below.<br><br></p><ol><li><strong>Visit any page of the member website - railwayspensions.co.uk</strong> <p>The site works well on most browsers but is not supported by Internet Explorer 11 or Android using IOS versions 10 and under.</p><p><img src="https://cdn3.railpen.com/mp-sitefinity-prod/images/default-source/default-album/rps-website.jpg?sfvrsn=88d07dda_2" title="RPS website" data-displaymode="Original" alt="RPS website"></p><p> </p></li><li><strong>Look at the top right hand corner of your screen. </strong> <p>If you’re on a desktop or laptop, click ‘login/register’. </p><p><img src="https://cdn3.railpen.com/mp-sitefinity-prod/images/default-source/default-album/log-in-or-register.jpg?sfvrsn=c9962e19_2" title="log in or register" data-displaymode="Original" alt="log in or register"></p><p>If you’re on a tablet or phone, select ‘menu.' Then login/register.</p><p><img src="https://cdn3.railpen.com/mp-sitefinity-prod/images/default-source/default-album/log-in-register-mobile.jpg?sfvrsn=25f02133_2" title="log in register mobile" data-displaymode="Original" alt="log in register mobile"></p></li><li><strong>Select create an account</strong></li></ol><p><img src="https://cdn3.railpen.com/mp-sitefinity-prod/images/default-source/default-album/create-an-account.jpg?sfvrsn=288ff569_2" title="create an account" data-displaymode="Original" alt="create an account"></p><p><strong>4. Fill in your pension reference number</strong></p><p>You can find this on any recent letters we’ve sent you. It should be a series of nine numbers, followed by /00 or a series of letters, followed by a series of numbers. <br><br><img src="https://cdn3.railpen.com/mp-sitefinity-prod/images/default-source/default-album/pension-reference-number.jpg?sfvrsn=ed13bf1b_2" title="pension reference number" data-displaymode="Original" alt="pension reference number"><br><strong><br></strong><strong>5. Add your National Insurance number<br><br><img src="https://cdn3.railpen.com/mp-sitefinity-prod/images/default-source/default-album/national-insurance-number.jpg?sfvrsn=d5087c91_2" title="national insurance number" data-displaymode="Original" alt="national insurance number"></strong></p><p><strong>6. Enter your date of birth<br><br><img src="https://cdn3.railpen.com/mp-sitefinity-prod/images/default-source/default-album/date-of-birth.jpg?sfvrsn=5035a485_2" title="date of birth" data-displaymode="Original" alt="date of birth"></strong></p><p><strong>7. Enter your personal email address</strong> </p><p>You will need to re-enter it in the box underneath just to make sure we’ve got it right </p><p><img src="https://cdn3.railpen.com/mp-sitefinity-prod/images/default-source/default-album/email-address.jpg?sfvrsn=21456b76_2" title="email address" data-displaymode="Original" alt="email address"></p><p><strong>8. Create a password</strong></p><p>This must be between 8 and 20 characters long. And contain at least:</p><ul><li>1 upper case letter</li><li>1 lower case letter</li><li>1 number</li><li>1 special character or symbol</li></ul><img src="https://cdn3.railpen.com/mp-sitefinity-prod/images/default-source/default-album/password.jpg?sfvrsn=4df1910_2" title="password" data-displaymode="Original" alt="password"><br><p>You will see green ticks displayed when you have met all of these requirements</p><p><img src="https://cdn3.railpen.com/mp-sitefinity-prod/images/default-source/default-album/password-again.jpg?sfvrsn=695cdc64_2" title="password again" data-displaymode="Original" alt="password again"><br><br></p><p><strong>9. Choose a security question from the drop down menu</strong> </p><p><img src="https://cdn3.railpen.com/mp-sitefinity-prod/images/default-source/default-album/security-question.jpg?sfvrsn=1e1e160c_2" title="security question" data-displaymode="Original" alt="security question"></p><p><strong>10. Type your answer to the security question</strong> <strong>in the box where requested</strong> </p><p><img src="https://cdn3.railpen.com/mp-sitefinity-prod/images/default-source/default-album/security-answer.jpg?sfvrsn=1b9c4d14_2" title="security answer" data-displaymode="Original" alt="security answer"></p><p><strong>11. Read the terms and conditions. Then tick the box to confirm you have done so</strong> </p><p><img src="https://cdn3.railpen.com/mp-sitefinity-prod/images/default-source/default-album/terms-and-conditions.jpg?sfvrsn=6a60bea6_2" title="terms and conditions" data-displaymode="Original" alt="terms and conditions"></p><p><strong> 12. Select ‘register now’</strong></p><p><img src="https://cdn3.railpen.com/mp-sitefinity-prod/images/default-source/default-album/register-now.jpg?sfvrsn=30fa2406_2" title="register now" data-displaymode="Original" alt="register now"></p><p><strong>13. Check your email.</strong></p><p>You should have received an email to the email address you entered when registering. This confirms that your registration has been successful. It may be in your spam/junk folder rather than your inbox. </p><p><img src="https://cdn3.railpen.com/mp-sitefinity-prod/images/default-source/default-album/check-your-email.jpg?sfvrsn=b11dd4e2_2" title="check your email" data-displaymode="Original" alt="check your email"></p><p><strong>14. Click the link in the email asking you to verify your account.</strong></p><p><strong>15. The link will take you back to the RPS website</strong>. <strong>You will then need to re-enter the email address and password you used to register.</strong></p><p><img src="https://cdn3.railpen.com/mp-sitefinity-prod/images/default-source/default-album/login-again.jpg?sfvrsn=caacb456_2" title="login again" data-displaymode="Original" alt="login again"><br><br><strong>16. Select log in to myRPS<br><br><img src="https://cdn3.railpen.com/mp-sitefinity-prod/images/default-source/default-album/select-login.jpg?sfvrsn=2837cfb5_2" title="select login" data-displaymode="Original" alt="select login"><br></strong></p><p><strong>17. Add a final piece of memorable information</strong></p><p>For added security, you’ll use this together with your password each time you log in. It should be at least 8 characters in length and be easy for you to remember. </p><p><img src="https://cdn3.railpen.com/mp-sitefinity-prod/images/default-source/default-album/create-memorable-information.jpg?sfvrsn=5699eff1_2" title="create memorable information" data-displaymode="Original" alt="create memorable information"></p><p><strong>18. Select create memorable information.</strong></p><p><img src="https://cdn3.railpen.com/mp-sitefinity-prod/images/default-source/default-album/click-create-memorable-information.jpg?sfvrsn=fde22575_2" title="click create memorable information" data-displaymode="Original" alt="click create memorable information"></p><p><strong>19. You should then be taken to your myRPS dashboard. And you’re all done.</strong> </p><p><img src="https://cdn3.railpen.com/mp-sitefinity-prod/images/default-source/default-album/myrps-dashboard.jpg?sfvrsn=fc2992da_2" title="myRPS dashboard" data-displaymode="Original" alt="myRPS dashboard"></p><p>To log back in at any time, simply </p><ul><li>visit the website</li><li>select login/register on a laptop or desktop or menu on a mobile </li><li>re-enter your email address, password and memorable information</li></ul><p>You can see a short video of these steps<a href="https://member.railwayspensions.co.uk/register" data-sf-ec-immutable=""> here</a></p><p>You can also find video other video guides for using the website <a href="https://member.railwayspensions.co.uk/resources/video-library/how-to-use-this-website " data-sf-ec-immutable="">here</a></p><p>This includes: </p><ul><li>How to request an estimate </li><li>How to nominate</li><li>How to switch investment funds</li><li>How to use the DC retirement modeller</li></ul>And read more about what you can do online in the news story <a href="https://member.railwayspensions.co.uk/knowledge-hub/news-and-views/news-updates/2021/06/14/log-in-and-leap-into-the-future" data-sf-ec-immutable="">here </a> <p> </p>
To set up your myRPS account online, you may need to register on our new website.
1/10/2021
Author: Editorial
<p><span style="background-color: rgba(0, 0, 0, 0); color: var(--color-h2); font-family: inherit; font-size: var(--font-size-h2); text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto">The first step is to work out your income in retirement</span></p><p>Look at what money you’ll have coming in when you stop work.</p><p>You can find out how much your RPS pension could be worth by logging in to your <a href="https://member.railwayspensions.co.uk/login" data-sf-ec-immutable="">myRPS account</a>.</p><p>There you’ll find an estimate of your benefits, as well as tools specifically designed to show how much you might have saved by the time you stop work.</p><ul><li>For IWDC members it’s the retirement modeller</li><li>For DB members currently paying into the Scheme it’s the pension planner</li></ul><p>Once you find out what your RPS pension could be worth, add this to any other expected sources of income. This could include:</p><ul><li>Other pensions – you may have a private pension or pensions linked to previous employment. You’ll need to speak to each of the providers individually for estimates on those accounts. If you’ve lost their contact details, the Pensions Tracing Service may be able to help. It’s a free, Government-backed, service available online (<a href="https://www.gov.uk/find-pension-contact-details" target="_blank" data-sf-ec-immutable="">gov.uk/find-pension-contact-details</a>) and over the phone (0800 731 0193). Other companies offer a similar service but many charge a fee </li><li>Savings and investments – if you have savings outside your pension, get those statements from your bank or other providers</li><li>Your State Pension – the amount you receive is set by the Government. You can request an estimate online at <a href="https://www.gov.uk/check-state-pension" target="_blank" data-sf-ec-immutable="">gov.uk/check-state-pension</a><br></li></ul><p><strong>A full state pension is worth £9,339</strong><strong><br></strong></p><p>Currently, the full new State Pension is worth £9,339. The State Pension is a regular payment from the government most people can claim when they reach State Pension age.<strong><br><br></strong>Most people in the UK who work, or undertake caring responsibilities, will be eligible for a State Pension if they have worked and paid National Insurance contributions or been a carer for at least 10 years.<br></p><p>If they have done so for 35 years, they could receive a full state pension, currently worth around £9,339 per year. This can be drawn from when a person is between 66 and 68 years of age, depending on their date of birth. Adjustments to the full amount may apply to reflect past periods of contracted-out service, when reduced rates of National Insurance were paid.</p><p><a href="https://www.gov.uk/check-state-pension" data-sf-ec-immutable="">Check your State Pension forecast</a> to find out how much money you’ll get.<br></p><p>Combined, these figures should give you an idea of how much money you might get when you stop work.<br></p><h2>Now work out your costs</h2><p>Use the <a href="/knowledge-hub/help-and-support/retirement-budgeting-calculator">Retirement Budgeting Calculator</a> to work out how much you might need, after tax, to cover your costs when you stop work.</p><p>The calculator allows you to estimate a wide range of expenses, and you can adjust each to a level that feels right for you. This includes:</p><ul><li>Transport</li><li>Holidays and leisure</li><li>Household costs</li><li>Food and drink</li><li>Helping others</li><li>Clothing and personal and</li><li>Anything else you expect to pay for, including care costs or charity donations</li></ul><p>It also takes into account the '<a href="https://www.retirementlivingstandards.org.uk/" target="_blank" data-sf-ec-immutable="">Retirement Living Standards</a>' which set a benchmark for affording certain lifestyles as shown below.</p><p><img src="00ddcd22-bb33-4a45-9ba4-28b0d6aff300" alt="retirement Living Standards are benchmarks for how much you might need in retirement based on a minimum, moderate or comfortable lifestyle"></p><p>At the end, the calculator will give you a personal target to aim for with your income after tax.<br></p><h2>Compare your costs with your income and take action if needed</h2><p>If you’re worried that your income in retirement, won’t cover your costs, there are a number of things you can do.</p><ul><li>Consider topping up your pension pot if you’re still paying into the Scheme – think about paying more into your pension if you can. This is known as making Additional Voluntary Contributions (AVCs). It’s tax-free up to certain limits. You can read more in our <a href="https://member.railwayspensions.co.uk/knowledge-hub/news-and-views/blog/rps-blog/2021/08/06/a-guide-to-saving-more-for-your-pension-with-avcs" data-sf-ec-immutable="" data-sf-marked="">guide to saving more with AVCs</a>. </li><li>Get advice – speak to an Independent Financial Adviser for guidance. <strong>Liverpool Victoria (LV)</strong> has been chosen as the official partner to give RPS members access to financial advice. LV can be contacted on 0800 023 4187. This service is authorised and regulated by the Financial Conduct Authority. </li><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.<br></li></ul><h2>Understand your options for taking your pension</h2><p>Whether you’re already approaching retirement, or looking ahead to the time that you do, it’s important to understand what choices you have.</p><p><strong>Your RPS pension</strong></p><p>In the ‘Planning for Retirement’ section of this website, you can read about:<strong></strong></p><ul><li>How and when you can retire</li><li>How you can take your benefits or Personal Retirement Account (PRA)</li><li>How to apply for your pension</li><li>Ways to check your savings are on track</li><li>Tips for protecting yourself from scams, and</li><li>Where to go for help and advice.</li></ul><p>All you need to do is pick the section that’s right for you. </p><ul><li>For DB members it’s <a href="https://member.railwayspensions.co.uk/defined-benefit-members/Im-planning-to-take-my-pension" data-sf-ec-immutable="" data-sf-marked="">here</a></li><li>For IWDC members it’s <a href="https://member.railwayspensions.co.uk/iwdc-members/im-planning-to-take-my-iwdc-pot" data-sf-ec-immutable="" data-sf-marked="">here</a></li></ul><p>You'll also find a video explaining your options in the video library <a href="https://member.railwayspensions.co.uk/resources/video-library/your-retirement-options" data-sf-ec-immutable="">here</a>. </p><p><strong>Other pensions</strong></p><p>You should contact the providers of any other workplace or private pensions, to see how and when you can take those pension benefits.</p><p>The earliest you can get your State Pension is when you reach <a href="https://www.gov.uk/calculate-state-pension/y/age" data-sf-ec-immutable="">your State Pension age</a>. You’ll have to wait to claim your State Pension if you retire before you reach that age.</p><p>You can <a href="https://www.gov.uk/working-retirement-pension-age" data-sf-ec-immutable="">keep working after you reach State Pension age</a>. A forced retirement age of 65, known as ‘Default retirement age’, no longer exists.</p>
No matter where you are in your career, if you are paying into the Scheme there is information and tools available to help you plan for the future.
2/4/2023
Author: Editorial
<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. If you’d like to find out more about the Trustee, go to <a href="/knowledge-hub/the-trustee">The Trustee</a>. </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> 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. 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. 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. </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> 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> The <strong>Tapered Annual Allowance (TAA)</strong> is a lower AA.<strong> </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. <strong> </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. </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. 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. </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. </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. 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 <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://cdn3.railpen.com/mp-sitefinity-prod/docs/default-source/rayn/guides-of-iwdc-members/a-guide-to-retirement-options.pdf?sfvrsn=36c5518a_21">Read as you Need guide to retirement options</a>. </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. Go to Pensions and retirement at <a href="http://www.moneyhelper.org.uk/" data-sf-ec-immutable="">MoneyHelper</a>. </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: "Open Sans Condensed", sans-serif; font-size: var(--font-size-h3); font-weight: bold; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto">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>. 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. 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. </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; caret-color: auto">*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> </h4>
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