Blog
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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14/2/2025
Member Experience
<div><h3> </h3><h4>Taking your benefits and staying in your job </h4></div><div><p>If you want to take your pension benefits and keep working, it is possible to do so at any time from age 55, up to age 75.</p></div><div><p>You will not be able to take your pension and keep working before age 55, even if you have a Protected Pension Age. This is in line with pension law.</p></div><div><p>You might have to get your employer’s permission to take your benefits and keep working.</p></div><div><p>When you take your benefits, you give up your right to be an active member of your Section – and any death in service benefits, should you die while you are still working. Your employer might let you re-join the Railways Pension Scheme, or give you the opportunity to join a different workplace pension that provides death in service benefits.</p><div><h3> </h3><h4>Taking your benefits <span style="text-decoration: underline">early</span> and staying in your job</h4></div><div><p>If you take your benefits before your normal retirement age (NRA), this is called taking early retirement. Taking early retirement means your benefits will be reduced compared to what they would be from NRA, as they will likely need to be paid for a longer time.</p></div><div><p>If you stay in work, your pension may be lower as it will not be your only source of income. This is because you are likely to be paying income tax on both your earnings from work, and your pension income.</p></div><div><p>If you retire due to ill-health, are under your normal retirement age, and you start working again, your incapacity pension may be impacted.</p><div><h3> </h3><h4>Taking your benefits, leaving your job, and getting a new job in the future</h4></div><div><p>If you retire – take your benefits and stop working – you can decide to work again in the future. In most cases, if you have taken your benefits after age 55, you will be able to work for any employer in the future.</p></div><div><p>You won’t be entitled to any death in service benefits once you’ve claimed your RPS benefits.</p></div><div><p>If you start working for an employer within the Railways Pension Scheme, they may let you rejoin as an active member or join a different workplace pension scheme.</p></div><div><p>Don’t forget that you pay tax on your pension, so you may be paying tax on both your earnings and your pension which may affect your overall income.</p></div></div><div><h3> </h3><h4>Later retirement - not taking your benefits at NRA and staying in your job </h4></div><div><p>If you’re not ready to stop working when you reach your normal retirement age in the Scheme, you don’t have to. You can continue working and paying into the Scheme, up to age 75.</p></div><div><p>You will continue to be entitled to all the other benefits of being a member, such as death in service benefit, until you leave your job. You will continue accruing additional membership and pension benefits until you leave the Railways Pension Scheme or opt-out.</p><div><p>There may be circumstances where working into your retirement years is both right and wrong for you. Before you consider your options, it’s worth considering the following: </p></div><table><tbody><tr><td><strong>When is it right for you? </strong></td><td><strong>When is it wrong for you? </strong></td></tr><tr><td><ul><li><p>If you’re fit and healthy enough to continue working, you may choose not to take your benefits for a while</p></li><li><p>If you want to increase your total pension amount</p></li><li><p>If you can afford to live off other savings, assets, income or private pensions</p></li></ul></td><td><ul><li><p>If you’re unable to work, such as through ill-health and require some form of income</p></li><li><p>If you have little income or savings and need your pension as a source of income</p></li><li><p>If there are taxation implications</p></li><li><p>If you or a partner claim certain benefits which would be affected by an increase in income</p></li></ul></td></tr></tbody></table><br><h4><span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-size: var(--font-size-h3); text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">Leaving your job and not taking your benefits</span></h4><div><p>If you decide to stop paying in to the Scheme, or leave your job, you will become a preserved member.</p></div><div><p>As a preserved member, you need to take your benefits at your normal retirement age. </p><p>Depending on the rules of your Section, you may be able to put off taking your pension up to the age of 75. In this case, late retirement factors will be applied to your pension. This will increase your benefits, as it’s likely they will be paid over a shorter time.</p><p>If you are eligible to delay taking your benefits after your NRA, we will tell you 3 months before, and you will have 6 months to decide. If you are member of the Network Rail section, we won't automatically pay your benefits at NRA unless you ask us to. </p><p><span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit"> </span></p><div><h4>Taking your State Pension later than your State Pension Age</h4></div><div><p>Your State Pension Age (SPA) may differ from your normal retirement age under the rules of your Section of the Scheme.</p></div><div><p>You may want to keep working after State Pension Age, and that’s fine. It’s also possible to defer claiming your State Pension.</p></div><div><p>Under the new State Pension your total amount will increase by up to 1% for every nine weeks it’s deferred. That means, if you hold off claiming your State Pension for a year, your amount could increase by 5.8%.</p><div><h3> </h3><h4>Get advice before making any decisions</h4></div><div><ul><li><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">The </span><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_23" target="_blank" rel="noreferrer noopener" data-sf-ec-immutable="" style="font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; white-space: inherit">Read as You Need Guide to retirement options</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"> will give you an overview of the choices available. </span></li><li><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>If you’re unsure which type of retirement will be best for you, you may want to get expert help. <a href="https://member.railwayspensions.co.uk/pension-essentials/guidance-advice" target="_blank" rel="noreferrer noopener" data-sf-ec-immutable="" style="font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; white-space: inherit">Find out more on the guidance and advice page</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></li><li><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><a href="https://member.railwayspensions.co.uk/defined-benefit-members/Im-planning-to-take-my-pension/making-the-right-decision" target="_blank" rel="noreferrer noopener" data-sf-ec-immutable="" style="font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; white-space: inherit">Use the steps on the making the right decision page</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"> to take stock of your pension to help work out what's best for you. </span></li><li><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>If you're not ready to retire then you may still be able to keep working and start taking your pension. <a href="https://member.railwayspensions.co.uk/defined-benefit-members/Im-planning-to-take-my-pension/staying-in-work" target="_blank" rel="noreferrer noopener" data-sf-ec-immutable="" style="font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; white-space: inherit">Find out more on the staying in work page.</a></li><li>You may wish to get advice before making a decision. There are suggestions of where to get trusted, expert advice on the <a href="https://member.railwayspensions.co.uk/pension-essentials/guidance-advice" target="_blank" rel="noreferrer noopener" data-sf-ec-immutable="" style="font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; white-space: inherit">Guidance and advice page</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></li></ul></div></div></div></div></div>
<div><h3> </h3><h4>Taking your benefits and staying in your job </h4></div><div><p>If you want to take your pension benefits and keep working, it is possible to do so at any time from age 55, up to age 75.</p></div><div><p>You will not be able to take your pension and keep working before age 55, even if you have a Protected Pension Age. This is in line with pension law.</p></div><div><p>You might have to get your employer’s permission to take your benefits and keep working.</p></div><div><p>When you take your benefits, you give up your right to be an active member of your Section – and any death in service benefits, should you die while you are still working. Your employer might let you re-join the Railways Pension Scheme, or give you the opportunity to join a different workplace pension that provides death in service benefits.</p><div><h3> </h3><h4>Taking your benefits <span style="text-decoration: underline">early</span> and staying in your job</h4></div><div><p>If you take your benefits before your normal retirement age (NRA), this is called taking early retirement. Taking early retirement means your benefits will be reduced compared to what they would be from NRA, as they will likely need to be paid for a longer time.</p></div><div><p>If you stay in work, your pension may be lower as it will not be your only source of income. This is because you are likely to be paying income tax on both your earnings from work, and your pension income.</p></div><div><p>If you retire due to ill-health, are under your normal retirement age, and you start working again, your incapacity pension may be impacted.</p><div><h3> </h3><h4>Taking your benefits, leaving your job, and getting a new job in the future</h4></div><div><p>If you retire – take your benefits and stop working – you can decide to work again in the future. In most cases, if you have taken your benefits after age 55, you will be able to work for any employer in the future.</p></div><div><p>You won’t be entitled to any death in service benefits once you’ve claimed your RPS benefits.</p></div><div><p>If you start working for an employer within the Railways Pension Scheme, they may let you rejoin as an active member or join a different workplace pension scheme.</p></div><div><p>Don’t forget that you pay tax on your pension, so you may be paying tax on both your earnings and your pension which may affect your overall income.</p></div></div><div><h3> </h3><h4>Later retirement - not taking your benefits at NRA and staying in your job </h4></div><div><p>If you’re not ready to stop working when you reach your normal retirement age in the Scheme, you don’t have to. You can continue working and paying into the Scheme, up to age 75.</p></div><div><p>You will continue to be entitled to all the other benefits of being a member, such as death in service benefit, until you leave your job. You will continue accruing additional membership and pension benefits until you leave the Railways Pension Scheme or opt-out.</p><div><p>There may be circumstances where working into your retirement years is both right and wrong for you. Before you consider your options, it’s worth considering the following: </p></div><table><tbody><tr><td><strong>When is it right for you? </strong></td><td><strong>When is it wrong for you? </strong></td></tr><tr><td><ul><li><p>If you’re fit and healthy enough to continue working, you may choose not to take your benefits for a while</p></li><li><p>If you want to increase your total pension amount</p></li><li><p>If you can afford to live off other savings, assets, income or private pensions</p></li></ul></td><td><ul><li><p>If you’re unable to work, such as through ill-health and require some form of income</p></li><li><p>If you have little income or savings and need your pension as a source of income</p></li><li><p>If there are taxation implications</p></li><li><p>If you or a partner claim certain benefits which would be affected by an increase in income</p></li></ul></td></tr></tbody></table><br><h4><span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-size: var(--font-size-h3); text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">Leaving your job and not taking your benefits</span></h4><div><p>If you decide to stop paying in to the Scheme, or leave your job, you will become a preserved member.</p></div><div><p>As a preserved member, you need to take your benefits at your normal retirement age. </p><p>Depending on the rules of your Section, you may be able to put off taking your pension up to the age of 75. In this case, late retirement factors will be applied to your pension. This will increase your benefits, as it’s likely they will be paid over a shorter time.</p><p>If you are eligible to delay taking your benefits after your NRA, we will tell you 3 months before, and you will have 6 months to decide. If you are member of the Network Rail section, we won't automatically pay your benefits at NRA unless you ask us to. </p><p><span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit"> </span></p><div><h4>Taking your State Pension later than your State Pension Age</h4></div><div><p>Your State Pension Age (SPA) may differ from your normal retirement age under the rules of your Section of the Scheme.</p></div><div><p>You may want to keep working after State Pension Age, and that’s fine. It’s also possible to defer claiming your State Pension.</p></div><div><p>Under the new State Pension your total amount will increase by up to 1% for every nine weeks it’s deferred. That means, if you hold off claiming your State Pension for a year, your amount could increase by 5.8%.</p><div><h3> </h3><h4>Get advice before making any decisions</h4></div><div><ul><li><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">The </span><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_23" target="_blank" rel="noreferrer noopener" data-sf-ec-immutable="" style="font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; white-space: inherit">Read as You Need Guide to retirement options</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"> will give you an overview of the choices available. </span></li><li><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>If you’re unsure which type of retirement will be best for you, you may want to get expert help. <a href="https://member.railwayspensions.co.uk/pension-essentials/guidance-advice" target="_blank" rel="noreferrer noopener" data-sf-ec-immutable="" style="font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; white-space: inherit">Find out more on the guidance and advice page</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></li><li><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><a href="https://member.railwayspensions.co.uk/defined-benefit-members/Im-planning-to-take-my-pension/making-the-right-decision" target="_blank" rel="noreferrer noopener" data-sf-ec-immutable="" style="font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; white-space: inherit">Use the steps on the making the right decision page</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"> to take stock of your pension to help work out what's best for you. </span></li><li><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>If you're not ready to retire then you may still be able to keep working and start taking your pension. <a href="https://member.railwayspensions.co.uk/defined-benefit-members/Im-planning-to-take-my-pension/staying-in-work" target="_blank" rel="noreferrer noopener" data-sf-ec-immutable="" style="font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; white-space: inherit">Find out more on the staying in work page.</a></li><li>You may wish to get advice before making a decision. There are suggestions of where to get trusted, expert advice on the <a href="https://member.railwayspensions.co.uk/pension-essentials/guidance-advice" target="_blank" rel="noreferrer noopener" data-sf-ec-immutable="" style="font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; white-space: inherit">Guidance and advice page</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></li></ul></div></div></div></div></div>
Blog
DB members: staying in work longer or working after taking your benefits
You may decide to keep working when you start taking your pension. Or you might want to go back to work once you retire. Read on to understand the rules and tax implications for both options.
Taking your benefits and staying in your job
If you want to take your pension benefits and keep working, it is possible to do so at any time from age 55, up to age 75.
You will not be able to take your pension and keep working before age 55, even if you have a Protected Pension Age. This is in line with pension law.
You might have to get your employer’s permission to take your benefits and keep working.
When you take your benefits, you give up your right to be an active member of your Section – and any death in service benefits, should you die while you are still working. Your employer might let you re-join the Railways Pension Scheme, or give you the opportunity to join a different workplace pension that provides death in service benefits.
Taking your benefits early and staying in your job
If you take your benefits before your normal retirement age (NRA), this is called taking early retirement. Taking early retirement means your benefits will be reduced compared to what they would be from NRA, as they will likely need to be paid for a longer time.
If you stay in work, your pension may be lower as it will not be your only source of income. This is because you are likely to be paying income tax on both your earnings from work, and your pension income.
If you retire due to ill-health, are under your normal retirement age, and you start working again, your incapacity pension may be impacted.
Taking your benefits, leaving your job, and getting a new job in the future
If you retire – take your benefits and stop working – you can decide to work again in the future. In most cases, if you have taken your benefits after age 55, you will be able to work for any employer in the future.
You won’t be entitled to any death in service benefits once you’ve claimed your RPS benefits.
If you start working for an employer within the Railways Pension Scheme, they may let you rejoin as an active member or join a different workplace pension scheme.
Don’t forget that you pay tax on your pension, so you may be paying tax on both your earnings and your pension which may affect your overall income.
Later retirement - not taking your benefits at NRA and staying in your job
If you’re not ready to stop working when you reach your normal retirement age in the Scheme, you don’t have to. You can continue working and paying into the Scheme, up to age 75.
You will continue to be entitled to all the other benefits of being a member, such as death in service benefit, until you leave your job. You will continue accruing additional membership and pension benefits until you leave the Railways Pension Scheme or opt-out.
There may be circumstances where working into your retirement years is both right and wrong for you. Before you consider your options, it’s worth considering the following:
| When is it right for you? | When is it wrong for you? |
|
|
Leaving your job and not taking your benefits
If you decide to stop paying in to the Scheme, or leave your job, you will become a preserved member.
As a preserved member, you need to take your benefits at your normal retirement age.
Depending on the rules of your Section, you may be able to put off taking your pension up to the age of 75. In this case, late retirement factors will be applied to your pension. This will increase your benefits, as it’s likely they will be paid over a shorter time.
If you are eligible to delay taking your benefits after your NRA, we will tell you 3 months before, and you will have 6 months to decide. If you are member of the Network Rail section, we won't automatically pay your benefits at NRA unless you ask us to.
Taking your State Pension later than your State Pension Age
Your State Pension Age (SPA) may differ from your normal retirement age under the rules of your Section of the Scheme.
You may want to keep working after State Pension Age, and that’s fine. It’s also possible to defer claiming your State Pension.
Under the new State Pension your total amount will increase by up to 1% for every nine weeks it’s deferred. That means, if you hold off claiming your State Pension for a year, your amount could increase by 5.8%.
Get advice before making any decisions
- The Read as You Need Guide to retirement options will give you an overview of the choices available.
- If you’re unsure which type of retirement will be best for you, you may want to get expert help. Find out more on the guidance and advice page.
- Use the steps on the making the right decision page to take stock of your pension to help work out what's best for you.
- If you're not ready to retire then you may still be able to keep working and start taking your pension. Find out more on the staying in work page.
- You may wish to get advice before making a decision. There are suggestions of where to get trusted, expert advice on the Guidance and advice page.
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