How topping up your pension could help pay for life after work.
Will you have enough money to live the kind of life you want life when you retire? Follow these 3 simple steps to find out and give yourself something to aim for.
Step 1: Work out how much you're likely to need in retirement
The Retirement Living Standards (RLS), offer a general guide to how much you might need when you stop work. You can find out more at retirementlivingstandards.org.uk
You can also use the Retirement Budgeting Calculator tool for a more personalised estimate. It's based on the RLS but lets you adjust certain figures for a more tailored idea of how much you might need to pay for the retirement you want.
Visit the Retirement Budgeting Calculator page or log in to your myRPS account to give it a go.
Step 2: Work out how much you're likely to get in retirement
If you're a DB member you can do this by using the Pension Planner in your myRPS account.
If you’re an IWDC member, you can do this using the Retirement Modeller in your myRPS account.
You can also request an estimate at any time by logging in to your myRPS account.
Visit the video library to watch short videos explaining how to use the Pension Planner or Retirement Modeller and how to request an estimate.
Remember, the Retirement Living Standards and Retirement Budgeting Calculator figures are based on the income you may need after tax, whereas the Pension Planner, Retirement Modeller and estimates, give you a guideline of what you might get before tax.
Log in to your myRPS account and use the online tools to see how much you might get when you stop work.
Step 3: Compare what you're going to need with what you're likely to get
If there’s a difference between the 2 figures, and you don't think you'll be able to pay for the retirement you want, then you may need to make some changes.
This could include:
You can read more about the cost of retirement and how to work out if your savings add up in the defined benefit and IWDC areas of this website.
If you want to save more for retirement, you may be able to ‘top-up’ your pension by paying Additional Voluntary Contributions (AVCs).
AVCs are extra contributions you pay into the Scheme, on top of the regular contributions you and your employer pay in.
The money you pay into AVCs is invested in a range of funds with the aim of increasing your retirement income. You can manage the funds yourself, or have them managed for you.
If you are a defined benefit member, the main AVC arrangement is called BRASS. For more information about BRASS, including how to join and the fund choices available, visit the saving more with BRASS page.
There is a limit on the amount you can contribute to BRASS in a Scheme year. If you exceed that limit, you could save more with AVC Extra. For more information, check the saving more with AVC Extra page.
If you're an IWDC member, you can save more by paying more contributions. For more information, read the saving more page for IWDC members.
If you need help and advice with your financial decision making, visit the guidance and advice page.