Understand how contributions work and what to do if you want to pay more.
You and your employer make regular payments each pay period towards your pension. These are known as your 'contributions'.
Your Key Features leaflet will tell you what your contribution rates are. You can find this in the My Library area when you log in to your myRPS account. Log in now to check your Key Features leaflet.
The money you pay in is taken from your Pensionable Pay. This is the part of your pay that your employer has decided counts towards your pension. It doesn't usually include overtime or bonus pay. The Key Features leaflet in your myRPS account will also tell you more about your Pensionable Pay.
You get tax relief on your contributions too. This means you save more because the money you would have paid in tax goes into your pension instead. For more information about tax relief, visit the pension tax limits page.
Your employer may also offer you the option to pay into the IWDC Section via an arrangement where you ‘give up’ some of your salary and instead use it as an additional company contribution into your pot. This is known as 'salary sacrifice'. Please speak to your employer directly if you need any further details about salary sacrifice.
You can help increase the value of your pot if you pay more in. You can do this with Additional Voluntary Contributions (AVCs). Like your normal contributions, AVCs are taken from your pay before income tax is applied. This means you do not pay tax on them. You may also be able to pay AVCs through a salary sacrifice arrangement if your employer offers one.
The value of your pension pot will change with time. Its value at any time will depend on:
The money you and your employer pay towards your pension is used to buy units in a range of investment funds.
The value of your chosen investment funds makes up your pension pot, so it's important to understand your options and what might work best for you.
It’s also up to you to decide how involved you want to be in the investment process. You can manage your own funds if you want to. If not, you can opt for a ‘hands-off’ approach and have your funds managed for you.
If you haven't chosen an option, you will be entered in the Flexible Drawdown Lifestyle strategy, which is the default option for IWDC members. Read on below for more information on the full list of investment options available.
You can choose from a range of investment funds, including Lifestyle strategies. Each of the investment choices has a different objective and risk rating. The one(s) that suit you will mostly depend on your personal attitude to risk and how you want to take your pot.
You can invest in as many of the strategies or funds as you like but you should think about your retirement goals and how you want to use your pot to give you the income you'll need. You may want to consider getting independent financial advice if you're unsure about your plans or which option is right for you.
Your investment funds have a direct impact on how much is in your pension pot. So it's vital that you check and monitor your funds regularly, even if they are being managed for you.
You can view, and switch your funds, by logging in to your myRPS account.
The best and easiest way to manage your pot is to log in to your myRPS account.
When you log in you can: