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<p>Research shows that those who plan ahead for life after work are more likely to feel positive about their current and future financial situation. They’re also more likely to enjoy better retirement outcomes and experiences than those who don’t.* The more prepared you are for retirement, the more likely you are to lead a better retirement lifestyle as a result. </p><p>You can read about why planning ahead is so important, and learn why it might be beneficial for you to take financial advice in&nbsp;<a href="https://member.railwayspensions.co.uk/knowledge-hub/news-and-views/blog/rps-blog/2024/05/16/the-power-in-preparing-for-your-future-part-2" data-sf-ec-immutable="">The power in preparing for your future part 2: Why it’s so important to think ahead</a>.</p><p>As a member of the Railways Pension Scheme (RPS), you have access to a wide range of pension planning tools to support you on your planning journey. You’ll need a myRPS account to use the planning tools, so <a href="https://member.railwayspensions.co.uk/register" data-sf-ec-immutable="">make sure to register for one if you haven’t already</a>. &nbsp;<br></p><h3>How to plan ahead:</h3><p>If the thought of planning for retirement leaves you scratching your head, take a look at these 4 cost-free practical tips. </p><p>You could work through them one at a time over the course of a few weeks, breaking them down into manageable tasks. </p><ol><li><strong>Think about your current financial situation </strong><p>If other financial commitments are getting in the way of your retirement planning, you’re not alone. As the cost of living increases, statistics show that we’re having to fork out more money to pay for life’s essentials, which makes it more difficult to put money aside for your future. </p><p>If you find yourself tightening your purse strings, you might start by thinking about how you currently manage your money, beyond your pension. </p><p><a href="http://www.money-fit.co.uk/railpen" data-sf-ec-immutable="">MoneyFit</a> can help you with this – it’s a cost-free, simple tool which can help you take control of your financial wellbeing. It offers practical tips to manage your money, budget and possibly free up more to save for your life after work. MoneyFit is completely anonymous, and your results are tailored to your personal financial circumstances. You can try MoneyFit in the <a href="https://member.railwayspensions.co.uk/login" data-sf-ec-immutable="">‘Planning for the future’ section of your secure myRPS account</a>. </p><p>&nbsp;</p></li><li><strong>Work out how much income you might need</strong><p>It’s proven that if you have a target to aim for, you’re more likely to achieve your goal. And, the earlier you set your target, the more time you’ll have to achieve it. You could set your target by thinking about how much retirement income you’ll need to live the lifestyle you want. </p><p>To work out how much retirement income you might need, think about how much you’re likely to spend on essentials such as bills, rental or mortgage costs and medical expenses. You could also consider any other costs, such as holidays and hobbies. Write your expected costs down so you can refer back to them. To help you on your way, there’s a <a href="https://member.railwayspensions.co.uk/defined-benefit-members/Im-planning-to-take-my-pension/how-much-Ill-need" data-sf-ec-immutable="">general guide to retirement costs on the ‘How much I’ll need for retirement’ page</a>. </p><p>To get a personalised estimate of how much you might need when you retire, <a href="https://member.railwayspensions.co.uk/login" data-sf-ec-immutable="">try the Retirement Budgeting Calculator.</a> You can add your own individual costs to find out how much the lifestyle you hope for could cost each year. The total cost will give you a general target to aim for with your retirement income. </p><p><strong>&nbsp;</strong></p></li><li><strong>Think about how you’ll pay for your retirement</strong><p>It’s likely you’ll have several sources of income when you retire. This could include your RPS pension, your State Pension, other pensions and savings or investments. Find out what they’re each likely to be worth, and add them together to see how much you might have in total. </p><p>If you’ve ever changed jobs, it’s possible that your RPS pension is not your only workplace pension. By spending some time tracing your old pensions, you could recover pension money that might help to pay for your retirement lifestyle. You can <a href="https://www.gov.uk/find-pension-contact-details" target="_blank" data-sf-ec-immutable="" data-sf-marked="">find more information on tracing lost pensions at Gov.uk.</a> </p><p>Remember, the total amount of income you might have in retirement may change depending on your life expectancy, changes in the law such as tax allowances and rates of inflation. </p><p>You could then compare your total likely income with your income target from the Retirement Budgeting Calculator. </p><p>If the numbers don’t add up, there are a number of things you can do before you stop work. You might decide to:</p><ul><li>Top up your pension with <a href="https://member.railwayspensions.co.uk/pension-essentials/saving-more" data-sf-ec-immutable="">Additional Voluntary Contributions (AVCs)</a></li><li>Think about changing your retirement age, to delay taking your pension</li><li>Clear your debts before you retire<p>&nbsp;</p><p>If you’re a defined benefit (DB) member, you can learn more about the <a href="https://member.railwayspensions.co.uk/defined-benefit-members/Im-planning-to-take-my-pension/making-the-right-decision" data-sf-ec-immutable="">actions you can take if the numbers don’t add up on the ‘Making the right decision’ page</a>.</p><p><span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">If you’re a defined contribution (DC) member, </span><a href="https://member.railwayspensions.co.uk/iwdc-members/im-planning-to-take-my-iwdc-pot/making-the-right-decision" data-sf-ec-immutable="" style="font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; white-space: inherit">visit the ‘Making the right decision’ page for DC members to learn more</a><span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">.</span></p><p><span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">&nbsp;</span></p></li></ul></li><li><strong>Experiment with the planning tools in your myRPS account</strong></li></ol><p>Your income from your RPS pension may change depending how and when you take your pension. Taking the time to understand your options could really pay off, as it could mean you’re able to afford a better retirement lifestyle.</p><ul><li>If you’re a <a href="https://member.railwayspensions.co.uk/login" data-sf-ec-immutable="">defined benefit (DB) member, try the Pension Planner in your myRPS account</a>. It shows what your annual income might be when you stop work, and how this might be affected by different ways of taking your pension. <a href="https://member.railwayspensions.co.uk/defined-benefit-members/Im-planning-to-take-my-pension/making-the-right-decision" data-sf-ec-immutable="">You can watch a short video on how to use it, and learn more about making the right decision for you here</a>.<strong></strong></li><li>If you’re a <a href="https://member.railwayspensions.co.uk/login" data-sf-ec-immutable="">defined contribution (DC) member, try the Retirement Modeller</a> to see what your pension pot might be worth when you retire, and the different ways you can choose to use that money. <a href="https://member.railwayspensions.co.uk/iwdc-members/im-planning-to-take-my-iwdc-pot/making-the-right-decision#:~:text=You%20can%20use%20the%20MoneyFit,pension%20pot%20for%20the%20future." data-sf-ec-immutable="">You can watch a video on how it works, and learn more about making the right decision for you here</a>.<strong></strong></li></ul><div><br clear="all"><div id="ftn1"><p>*Research by the Pensions Management Institute (PMI) and Standard Life</p></div></div>

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

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