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

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

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