Annual pension increase

Your railways pension is reviewed every year. It increases in line with orders published by the government, and matched to the Consumer Prices Index (CPI) figure from the previous September.

Your 2024 railway pension increase

The railways pension will increase by up to 6.7% for the 2024/25 tax year. This is coming into effect from ​​8 April 2024.

How much of this rise you get will depend on how long you have been a retired (or preserved) member and the rules of your specific Section.

If you took your benefits or became a preserved pensioner on or after 24 April 2023, you won’t get the full amount because you’ve been retired, or preserved, for less than a year. Spouses’ pensions increase in the same way.

You will get a letter confirming your pension amount and the % increase. You can also find your pension payment amount on your payslips in your myRPS account. 

For more information please check the Read as You Need guide to your pension payments. You can also read more in the spring issue of Penfriend and read the  annual pension increase news story on this website. You can also find answers to some common questions below.

A £50 note, a small pile of coins and a cheque from the RPS
How will my first pension payments for the new tax year be worked out?

Depending on when your pension is paid, you may receive part of your pension at the new four-weekly rate, and part at the old rate. The date of pension payments and weeks at the old and new rates may vary each tax year.

The table below shows how the pension increase for the 2024/25 tax year will be paid.

  Weeks at:
Date of pension payment Old rate New rate
12/04/2024                                        3 1
19/04/2024                                        2 2
26/04/2024                                        1 3
03/05/2024                                     0 4
Will my tax code change if my pension increases?

Your pension is a taxable income. The amount of tax you pay depends on your tax code, issued by HM Revenue & Customs (HMRC). We use your tax code to work out how much Income Tax to take from your pension. Tax is taken from your pension before it reaches your bank account.

If your income changes, HMRC may change your tax code. Your tax code is based on your own personal circumstances, and it may affect the amount you get at the new four-weekly rate, after tax.

You pay tax on your total annual income from all sources, including:

  • Your State Pension 
  • Your workplace pension 
  • Any earnings, for example if you are still working
  • Other pensions you are getting
  • Rental income

If your tax code changes, HMRC will usually contact you. You can see your tax code on your P60. A copy is available in your myRPS account.

If you need more information about the tax you may need to pay, you will need to contact HMRC.

Changes to your bank details

Changed your bank or building society? Make sure you update your details as soon as possible so you don't miss out on your increased pension. You can log in to your myRPS account to update your bank details or find more information on the updating my bank details page. 

What to read next...

My pension payments and P60s

Find out how and when your pension is paid and where to find your P60. 

Penfriend

Read the latest Penfriend newsletter, packed full of useful information about your pension and stories from rail industry colleagues. 

The State Pension

This page explains how the State Pension works and what you might get.