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<p><span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto">&nbsp;</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; white-space: inherit; word-spacing: normal; caret-color: auto">Nobody likes to imagine getting older, so many of us choose to ignore our pensions.&nbsp; It’s nothing new, but it’s unwise. A recent study* has found two-thirds of adults retiring in 2021 in the UK won’t have enough in their pension to fund their post-work life. Many people are now facing a difficult retirement.</span> <span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto"></span><br></p><h2>Women especially should consider their position<br></h2><p>Society and family structures have changed hugely since the UK pension system was first created in the early 1900s. The traditional nuclear family was the norm, with men typically earning the money and women raising the children at home. But now, this family model has changed. There are more women than ever in the workplace, there are many single-parent families and different family structures.</p><p>According to a report published by Barnett Waddingham in March 2021**, women who take time off work have fewer pension savings than women who don’t.</p><p>For a woman taking two 12 month career breaks in her early 30s, with no pension savings or salary increase during this time, it can lead to a level of pension savings at retirement of around 10% lower compared to a woman with no career breaks.</p><h2>Lack of pension parity for women<br></h2><p>It’s not just career breaks that impact women’s pension savings. The report found that the pension gap between men and women is most stark in the high affluence group – typically because men’s pay in this group is significantly higher than women’s.</p><p>There are many more contributing factors, including:</p><ul><li>Taking on caring responsibilities for children, ageing parents or other family members typically gives less flexibility for many women to progress in their careers, earn more and contribute more to workplace pensions;</li><li>The imbalance of women working in lower paid or lower skilled occupations;</li><li>Women are more likely to be on zero-hour contracts or working multiple part-time roles so do not reach workplace pension auto-enrolment thresholds;</li><li>The increasing rates of divorce, particularly in later life;</li><li>The low level of default contribution rates in general.</li></ul><h2>Will you have enough for the retirement you want?<br></h2><p>Women in particular should carefully consider their options well before retirement, and whether they have enough saved to maintain their current lifestyle. </p><p>Our planning tools can help. &nbsp;</p><p>When you log in, or register for an account, you will see two modellers in the ‘Planning for the future’ section of your ‘myRPS account’.</p><ul><li>Defined benefit members can use the <strong>pension planner</strong></li><li>IWDC members can use the <strong>retirement modeller</strong>.</li></ul><p>All members can then use the <strong>retirement budgeting calculator</strong> to find out if your current level of pension benefits and/or savings will be enough, or whether you might want to make adjustments.</p><p>You can use the calculator together with your latest benefit statement, or <strong>request an estimate. </strong>It’s free to do, you can request as many as you like, and the estimate is usually ready within an hour. </p><p>These planners will show you what your annual income is likely to be when you retire. As a rough guideline, current research shows you will need between £10,200 (basic) to £33,000 (comfortable) per year when you finish work.</p><p>The Retirement Living Standards are benchmarks for the income you might need in order to afford different lifestyles - minimum, moderate and comfortable. Full details can be found at <a href="http://www.retirementlivingstandards.org.uk/" data-sf-ec-immutable="">retirementlivingstandards.org.uk</a>. But as a general rule, they suggest the following:</p><img src="00ddcd22-bb33-4a45-9ba4-28b0d6aff300" style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto" alt="retirement Living Standards are benchmarks for how much you might need in retirement based on a minimum, moderate or comfortable lifestyle"><p><br>It’s never too early – or too late- to start making extra contributions to your pension savings.</p><h2>How to save more with Additional Voluntary Contributions</h2><p>Additional Voluntary Contributions (AVCs) are flexible extra pension savings you can make from your pay (before tax is taken) on top of the normal contributions you make to your pension.</p><ul type="disc"><li>One of the perks of AVCs is that you don’t need to save a set amount every month. If you’ve got an expensive time coming up, you can reduce your contributions, or equally you can add more in if you have some to spare.&nbsp;</li><li>AVCs are a great way to save extra money for retirement if you get large payments that don’t qualify for your pension, such as overtime and bonus payments.</li><li>You’ll also get government tax relief on anything you put in up to your annual allowance - currently £40,000 for most people. &nbsp;If you’re a high earner with an income of more than £200,000 a year, your annual allowance might gradually reduce to as low as £4,000 in the current tax year.</li></ul><h2>AVCs for defined benefit members</h2><p>The main AVC arrangement open to defined benefit (DB) members is called BRASS. When you join the Scheme, you’ll get a separate BRASS account, and your AVC contributions are then invested in a range of funds with the aim of building up extra pension savings over time.</p><p>&nbsp;You’ll be able to&nbsp;<a href="https://member.railwayspensions.co.uk/my-rps" data-sf-ec-immutable="">log in to your account</a>&nbsp;(or&nbsp;<a href="https://member.railwayspensions.co.uk/register" data-sf-ec-immutable="">register</a>) any time to:</p><ul><li>make changes to the BRASS amount you contribute</li><li>view your investment fund holdings</li><li>see how the funds are performing​</li><li>change the funds you invest in.</li></ul><h2>How much more should I save?</h2><p>If you’ve used the planning tools, you’ll have a better idea of how much more to save, to have the retirement you imagined. </p><p>Some employers allow contributions to be paid via a ‘salary sacrifice’ arrangement, which reduces your National Insurance bill. And they may even increase the amount they pay into the scheme if you choose to save more. It’s worth checking! </p><p>Most members making additional voluntary contributions pay in more than £100 per month, but you can put in as little as £10 per month and top up your regular payments or make one-off payments at any time. No matter how big or small your contribution, it all helps.</p><p>There is a maximum amount that you can pay into BRASS. If you want to pay more AVCs, most members can apply to join AVC Extra. <a href="/knowledge-hub/help-and-support/RAYN">Check the Read as you Need guides</a> for the rules that apply to your section of the Scheme.</p><h2>AVCs for IWDC members</h2><p>If you’d like to make extra contributions, you’ll need to speak to your employer. The contributions will be deducted from your pay like your usual pension deductions. </p><p>Get more information on BRASS and AVC Extra <a href="/defined-benefit-members/saving-more-BRASS-AVC-Extra">here</a>.<span style="text-decoration: underline"></span></p><h2>What if the numbers don’t add up?</h2><p>The more you save now, the more time your money has to grow. Over the long-term, the investment returns on your AVCs could make a big difference to the amount you have to live on when you retire.</p><h2>Get advice before making any decisions. </h2><p>We can help you understand the Scheme rules that apply to you and tell you how it works, but we can’t give you advice relating to your personal circumstances. If you need help deciding what to do with your money, you’ll need to talk to a financial advisor. </p><p>Liverpool Victoria has been carefully chosen to give members access to independent financial advice. LV can be contacted on 0800 023 4187. </p><p>You are still free to choose your own Independent Financial Adviser. You can find an IFA in your area at <strong><a href="https://www.unbiased.co.uk/" target="_blank" data-sf-ec-immutable="">unbiased.co.uk</a></strong></p><p><strong><a href="https://www.moneyhelper.org.uk/en" target="_blank" data-sf-ec-immutable="">Moneyhelper.org.uk</a> </strong>offers free support on a wide range of financial matters, online and over the phone.</p><p>And there’s a wealth of information in the <strong>‘</strong><strong>Resources</strong><strong>’</strong> and <strong>‘In the Scheme’</strong> sections of the RPS website.</p><h3>Sources</h3><p><strong>*</strong>&nbsp; <a href="https://www.aberdeenplc.com/en-gb/news/all-news/uk-retirees-at-risk-of-running-pension-pots-dry" target="_blank" data-sf-ec-immutable="" data-sf-marked="">UK retirees at risk of running pension pots dry</a> </p><p>**&nbsp;<a href="https://www.barnett-waddingham.co.uk/comment-insight/research/gender-pension-gap/" target="_blank" data-sf-ec-immutable="">Bridging the gap: the gender pension gap and what can be done about it</a></p><p>&nbsp;</p>

<p><em>This blog is part of a series of 3 articles on saving more with BRASS, so stay tuned for more information coming soon.</em><em></em></p><p>BRASS is the main arrangement for members of the Railways Pension Scheme (RPS) who want to pay more on top of the normal contributions they make towards their pension. </p><p>It’s available to all Defined Benefit (DB) active members and is a great way to boost your retirement income. </p><p>BRASS is popular with our members, and we sometimes receive specific questions about different aspects of saving more with it. We’ve explained some of the specifics of BRASS below to help you get to grips with it.</p><p>Below, we’ve collated some common questions we receive about saving more with BRASS and we’ve provided an answer to each one.<br></p><p>Please visit the <a href="https://member.railwayspensions.co.uk/defined-benefit-members/saving-more-BRASS-AVC-Extra/saving-more-with-BRASS" data-sf-ec-immutable="">Saving more with BRASS area of the website</a> for more information.&nbsp;</p><p><br></p><h3>Would a pay increase affect my BRASS savings in any way and if so, how?</h3><p>If you are contributing a fixed amount, e.g. £50 each pay period, then your BRASS contribution should not be affected by a pay increase. However, if your BRASS contribution is expressed in a percentage of your pay, e.g. 2% of your pensionable pay, then a pay rise will affect the amount of your actual BRASS contributions.</p><p>This is because the most you can contribute to BRASS each tax year is the higher of either: <br></p><ul><li>15% of your gross pay; or </li><li>20% of your pensionable pay plus pensionable restructuring premiums if you have them; less</li><li>the amount you already contributed in normal contributions to the Scheme.<br></li></ul><p>In addition, if the pay increase has an impact on your potential gross pay, it may increase the maximum BRASS contribution that you can pay in the tax year.<br></p><p>Your employer or HR department should be able to help you to workout the maximum amount of BRASS contributions that you are eligible to pay each tax year.&nbsp; </p><p>&nbsp;</p><h3>What is my BRASS NRA?</h3><p>You will need to take your BRASS pot of money together with your main RPS benefits. Therefore, there isn’t a Normal Retirement Age (NRA) for your BRASS as such.&nbsp; <br></p><p>The Target Retirement Age (TRA) is more relevant to your BRASS pot, especially if you’ve opted for a hands-off approach in managing your investments and you’ve let Railpen do this on your behalf. <br></p><p>You set your TRA and it can be earlier or later than your main RPS section NRA. If you do not choose a TRA, it will default to your NRA.</p><p>&nbsp;</p><h3>How quickly does it take to set up a BRASS payment, to those payments then going out?</h3><p>BRASS contributions are taken from your pay together with you normal RPS contributions. <br></p><p>If you wish to start paying BRASS contributions, please liaise with your HR/Payroll department who will make the arrangements to deduct BRASS contributions at the same time as your normal RPS contributions during the next available payroll period. <br></p><p>If your employer operates a Salary Sacrifice arrangement, there may be a limited window for you to start, stop or amend BRASS contributions.&nbsp; </p><p>&nbsp;</p><h3>What happens to my BRASS pot if I die?</h3><p>In this situation, your BRASS pot will be paid at the discretion of the Trustees to your potential beneficiaries as a lump sum, taking your nominations into consideration.&nbsp; <br></p><p>It’s important to keep your nominations up-to-date so the Trustee knows who you’d like to receive your savings. You can make and update your nominations easily in your <a href="/my-rps">myRPS account</a>. </p><p>&nbsp;</p><h3>What happens if I max out BRASS while working part time?</h3><p>If you have reached the maximum that you can contribute to BRASS, whether you are working part-time or full time, you may still have scope to pay AVCs above the BRASS maximum into an arrangement called <a href="https://member.railwayspensions.co.uk/defined-benefit-members/saving-more-BRASS-AVC-Extra/save-more-AVC-Extra" data-sf-ec-immutable="">AVC Extra</a> (this arrangement is not available to members of the Network Rail section). <ins cite="mailto:Rob%20Hughes" datetime="2025-04-08T07:22"></ins></p><p>&nbsp;</p><h3>How can I calculate the maximum BRASS contributions I can make each year?</h3><p>The most you can contribute to BRASS each tax year is the higher of either: </p><ul><li><p>15% of your gross pay, or</p></li><li><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">20% of your pensionable pay plus pensionable restructuring premiums if you have them; less</span></p></li><li><p>the amount you already contributed in normal contributions to the Scheme</p></li></ul><p>Your HR/Payroll department will be able to advice your maximum BRASS contribution limit for each tax year.</p><p><a href="/knowledge-hub/help-and-support/RAYN">If you work for Network Rail, there is a guide for this section specifically</a>, as different rules apply to Network Rail section members.</p><p>&nbsp;</p><h3>Does BRASS buy you extra years in pension (service)?</h3><p>When you take your benefits, the value of your BRASS pot is used to buy you extra pension in your section of the Scheme. </p><p>However, you will have the option, or may be required to take a tax-free cash lump sum equal to the value of your BRASS pot, up to the maximum allowed by His Majesty Revenue &amp; Customs (HMRC). </p><p>Different rules apply to Unisys, RSSB, Transport for Wales and Network Rail section members. </p><p>If you work for Unisys, RSSB or Transport for Wales, please contact our Helpline on 0800 012 1117. </p><p>If you work for Network Rail, there is a <a href="https://cdn3.railpen.com/mp-sitefinity-prod/docs/default-source/rayn/active-network-rail-members/a-guide-for-network-rail-members-of-brassdda4d9894c894cd9b807c7bb0560c976.pdf?sfvrsn=83945e80_25" data-sf-ec-immutable="">Read As You Need guide</a> you can read to understand more. </p><p>&nbsp;</p><h3>Is it true that you can only pay into BRASS for 40 years? What happens once you’ve reached 40 years’ membership with BRASS? </h3><p>Your BRASS pot is separate from the main contributions you make into your RPS pension each month. </p><p>Some sections of the Scheme have a maximum membership of 40 years rule that applies to their section members. </p><p>If you are paying into a section that has this rule, you should know that the rule is only relevant to your main pension contributions and not to any additional contributions you make via BRASS or any other AVC arrangement. </p><p>If you reach 40 years of membership in the Scheme, then you will need to stop making contributions towards your main RPS pension but you may be able to continue to save with BRASS until you decide to take your savings. </p><p>&nbsp;</p><h3>If I move sections in the RPS, does my BRASS pot automatically transfer to my new section or would I need to arrange this with Railpen? </h3><p>This depends on the rules of the section that you are paying in. &nbsp;</p><p>Transfers that happen within the Scheme are called ‘inter-Scheme transfers’.<br></p><p>If your section rules allow inter-Scheme transfers, then you may be able to transfer your previous period of membership including your BRASS pot into your current section. To do this, you’d need to complete an inter-scheme transfer request form. You can find this form in your <a href="https://member.railwayspensions.co.uk/login" data-sf-ec-immutable="">myRPS account</a>. Special terms may apply if you request a transfer within 15 months of leaving your current section. <br></p><p>You can find out more about transferring benefits into the RPS in your Member Guide, which is available in 'My Library' when you log into your myRPS account.</p><div><div><div id="_com_1"></div></div></div>

<p><em>This blog is the third and last from a series of 3 articles on saving more with BRASS. You can read the previous articles at the bottom of this page.&nbsp;</em></p><p>BRASS is the main arrangement for members of the Railways Pension Scheme (RPS) who want to pay more on top of the normal contributions they make towards their pension. </p><p>It’s available to all Defined Benefit (DB) active members and is a great way to boost your retirement income. </p><p>BRASS is popular with our members, and we sometimes receive specific questions about different aspects of saving more with it. We’ve explained some of the specifics of BRASS below to help you get to grips with it.</p><p>Below, we’ve collated some common questions we receive about saving more with BRASS and we’ve provided an answer to each one.<br></p><p>Please visit the <a href="https://member.railwayspensions.co.uk/defined-benefit-members/saving-more-BRASS-AVC-Extra/saving-more-with-BRASS" data-sf-ec-immutable="">Saving more with BRASS area of the website</a> for more information.&nbsp;</p><p>&nbsp;</p><h3>How can I take my BRASS pot?</h3><p>You must take your BRASS pot at the same time as you take your main Scheme pension. You should apply to take your BRASS pot at the same time as you apply to take your pension.<br></p><p>Most BRASS members must take a tax-free cash lump sum equal to the value of their BRASS pot, up to the maximum allowed by HMRC. <br></p><p>Alternatively, you can choose to transfer your BRASS pot to another provider. If you are considering this option, we strongly recommend you seek independent financial advice before you take an action.<br></p><p>&nbsp;</p><h3>From what age can I take it?</h3><p>Unless your BRASS pot is transferred to an alternative provider, it will be paid at the same time as your main Scheme benefits. <a href="https://member.railwayspensions.co.uk/knowledge-hub/news-and-views/blog/rps-blog/2025/05/15/a-closer-look-at-brass--part-2" data-sf-ec-immutable="">Give the second blog in the series a read</a> for more information on this.<ins cite="mailto:Rob%20Hughes" datetime="2025-04-08T07:24"></ins></p><p>&nbsp;</p><h3>How does converting BRASS savings to pension work?</h3><p>Depending on the rules of the section you are paying in to, you may be required to take a tax-free cash lump sum of at least the value of your BRASS pot, as long as it is not more than the maximum tax-free lump sum allowed by HMRC. The maximum is 25% of the total value of your pension benefits.<br></p><p>If you elect to take a minimum lump sum and more pension, the value of your lump sum will be equal to your BRASS pot, as long as it is not more than the maximum lump sum allowed by HMRC. This means you won’t need to convert any pension to pay your lump sum.<br></p><p>If the value of your BRASS pot is greater than the maximum allowed by HMRC, the excess BRASS funds will be converted to additional pension. The conversion rates depend on section of the Scheme you are in.<br></p><p>If the value of your BRASS pot is less than your chosen lump, either because you have opted to take the maximum or a specified amount, the difference will be converted from your pension. This means although some of your pension will be converted to lump sum, your BRASS pot will contribute towards your lump sum meaning less pension will be used.<br></p><p>Have a read of the <a href="https://cdn3.railpen.com/mp-sitefinity-prod/docs/default-source/rayn/guides-for-active-(contributing)-members/a-guide-for-brass-members.pdf?sfvrsn=18a5265a_23" data-sf-ec-immutable="">Read As You Need guide</a> for more information. </p><p>&nbsp;</p><h3>Can I cash in my BRASS and/or AVC Extra pots when I reach age 55?</h3><p>You can take your BRASS and/or AVC Extra pots separately to your main RPS pension. <br></p><p>To take your BRASS pot earlier than your Scheme pension, you will have to transfer its value to another registered pension provider and to then take it from them. <br></p><p>You can take your AVC Extra pot directly from the Scheme from age 55 onwards. <br></p><p>You can also leave your AVC Extra pot in the Scheme even if you decide to take your main RPS pension.&nbsp; You can leave it unclaimed after retirement and take it at a later point if you wish. The latest you can leave it in until is age 75 which is also the latest age you can take your main Scheme pension. Find out more about AVC Extra on the <a href="https://member.railwayspensions.co.uk/defined-benefit-members/saving-more-BRASS-AVC-Extra/save-more-AVC-Extra" data-sf-ec-immutable="">Managing my AVC Extra page</a>.&nbsp;</p><p>&nbsp;</p><h3>Does the Money Purchase Annual Allowance (MPAA) apply to BRASS and AVC Extra after I have taken my defined benefit pension? Is it worth still paying into BRASS and AVC Extra after taking my pension pot as allowance for these reduces to £10,000 a year?</h3><p>You will not trigger the MPAA by claiming your BRASS pot along with your main RPS benefits. This is because MPAA is triggered when you have flexibly accessed any DC (defined contribution) pension that you have built up.&nbsp; <br></p><p>The current Scheme rules require you to take your BRASS together with your main RPS benefits. When you come to take your BRASS pot and your pension, you can take some of your savings in the form of a lump sum. The lump sum will be tax-free as long as the value of it is up to the maximum HMRC limit. This is also known as the Pension Commencement Lump Sum (PCLS) of a Defined Benefit (DB) pension scheme.</p><p>Once you’ve reached the limit set by HMRC, the remaining savings you have in your BRASS pot is converted to a Scheme pension.&nbsp; <br></p><p>However, if you are saving more with the AVC Extra arrangement, your AVC Extra pot is classed as a standalone DC pot and therefore, it cannot be converted to a DB Scheme pension. The MPAA will apply in this case as the AVC Extra arrangement is a defined contribution (DC) one. <br></p><p>The current MPAA is £10,000 which means if you are subject to it, you can only pay a maximum of £10,000 tax free into any DC arrangement every tax year. <br></p><p>If you think you would benefit from financial guidance or advice, read the information on the <a href="https://member.railwayspensions.co.uk/pension-essentials/guidance-advice" data-sf-ec-immutable="">Guidance and advice&nbsp;page</a>.<strong></strong><br></p><p>&nbsp;</p><h3>What is the minimum age to access the funds while avoiding tax?</h3><p>The earliest pension age is currently 55 for most RPS members. This is different for members who have Protected Pension Age (PPA) of earlier than 55.&nbsp; </p><p>You must take your BRASS pot together with your main Scheme pension. If you have PPA of earlier than 55, and wish to claim your pension benefits at an earlier age, you must claim all pension benefits within the Scheme at the same time including your main RPS pension, any BRASS and/or AVC Extra savings as well as any Industry Wide Defined Contribution (IWDC) pension benefits you may have. </p><p>Taking your pension earlier than your normal retirement age (NRA) means we’ll apply early retirement factors because you’ll be receiving your pension for longer. This means you’ll likely get less pension each year compared to taking it at your NRA. <br></p><div><div><div id="_com_1"></div></div></div>