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<p>At times through our working lives, many of us will look forward to the day that we stop work and finally claim our hard-earned pension savings. This National Payroll Week find out how your Railways Pension Scheme (RPS) pension benefits could be paid to you when you take them.&nbsp;</p><p>National Payroll Week aims to help raise awareness about payroll and how it works, so it’s a great opportunity to learn more about how your RPS pension savings may be paid to you, and to explore the options you might have to take them.&nbsp;</p><p>The way your pension is paid depends on:</p><ul><li>whether you’re a defined benefit (DB) member, or an Industry-Wide Defined Contribution (IWDC) member of the RPS; and</li><li>the option you choose when you take your pension benefits&nbsp;</li></ul><p>We can’t help decide which option is best for you, but this blog can offer some of the information you need to make a decision.</p><p>If you’re not sure whether you’re a DB or IWDC member of the Scheme, you can check in the <a href="https://member.railwayspensions.co.uk/login" data-sf-ec-immutable="">My Pension area, under ‘Membership Details’ and ‘Pension Type’ in your myRPS account</a>.</p><p>&nbsp;</p><h3>I’m a defined benefit (DB) member</h3><p>There are many different ways you can take your DB pension, so you can choose the option that’s right for your individual circumstances. The option you choose will determine how your pension benefits are paid to you when you take them. <br></p><p>Here’s a brief summary of the options available to DB members of the Scheme. There’s more detail on the options and how they work on the <a href="https://member.railwayspensions.co.uk/defined-benefit-members/Im-planning-to-take-my-pension/ways-to-take-my-pension" data-sf-ec-immutable="">Ways to take my pension page, in the ‘Defined benefit members’ area of your member website</a>.&nbsp;</p><p>If the rules for your Section of the Scheme allow, you can:</p><p style="margin-left: 30px"><strong>1. Take part lump sum, part pension<br></strong><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">You may be able to take up to 25%, (but normally no more than £268,275) as a tax-free cash lump sum. The rules which explain the exact amount you can take as a lump sum are in your Member Guide. You can </span><a href="https://member.railwayspensions.co.uk/login" data-sf-ec-immutable="" style="font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; white-space: inherit">find your Member Guide in ‘My Library’ when you log in to myRPS</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></p><p style="margin-left: 30px"><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">&nbsp;</span></p><p style="margin-left: 30px"><strong>2. Take it all as pension</strong></p><p style="margin-left: 30px">You may be able to take all of your pension benefits as regular pension payments, and none as lump sum. This is done by converting any lump sum into additional pension. <br></p><p style="margin-left: 30px">This option may be restricted if you’ve paid any Additional Voluntary Contributions (AVCs) to BRASS, and depends on the rules for your Section. There’s more information on <a href="https://member.railwayspensions.co.uk/defined-benefit-members/Im-planning-to-take-my-pension/transferring-my-pension" data-sf-ec-immutable="">the impact of AVCs in the ‘I’m planning to take my pension’ area of your member website</a>.</p><p style="margin-left: 30px"><br></p><p style="margin-left: 30px"><strong style="background-color: rgba(0, 0, 0, 0); color: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit; font-size: inherit">3. Take it all as a cash lump sum</strong><br>This is only possible in some circumstances, and depends on the rules for your Section. You may be able to take it all as a cash lump sum if: </p><ul style="margin-left: 30px"><li>You have a small pension, usually where the value of all your pension benefits is no more than £30,000. You may be able to cash it in under what’s known as ‘Trivial Commutation’ rules. There’s <a href="https://cdn3.railpen.com/mp-sitefinity-prod/docs/default-source/rayn/guides-for-all-members/a-guide-to-trivial-commutation.pdf?sfvrsn=43f64793_16" data-sf-ec-immutable="">more information in the Read as You Need Guide to Trivial Commutation in the Knowledge Hub</a>.</li><li>You take your pension on the grounds of serious ill health, or</li><li>You get a short service leaver refund.</li></ul><p>&nbsp;</p><p style="margin-left: 30px"><strong>4. Take the level pension option</strong></p><p style="margin-left: 30px">The level pension option aims to level out your income in retirement. With this option, you get more pension from the RPS before your State Pension age (SPA), and less pension from the RPS after your SPA. You can <a href="https://www.gov.uk/state-pension-age" target="_blank" data-sf-ec-immutable="">check your State Pension age at Gov.uk</a>.</p><p style="margin-left: 30px">&nbsp;</p><p style="margin-left: 30px"><strong>5. Transfer your pension, with risks</strong></p><p style="margin-left: 30px">You may be able to transfer your DB pension to another pension provider. But transferring carries risks, and <a href="https://member.railwayspensions.co.uk/pension-essentials/pension-scams" data-sf-ec-immutable="">it's important you stay alert for scams</a>. You should think carefully before you transfer, as you could lose the valuable benefits of your DB pension.</p><p style="margin-left: 30px">If you’re considering a transfer, you might benefit from financial advice. You may have to take financial advice by law, depending on the value of your pension benefits. Please <a href="https://member.railwayspensions.co.uk/defined-benefit-members/Im-planning-to-take-my-pension/transferring-my-pension" data-sf-ec-immutable="">read all of the information in the 'Transferring my pension' area</a> before you make a decision. </p><p style="margin-left: 30px">You cannot transfer your pension benefits when they are in payment.</p><p style="margin-left: 30px">&nbsp;</p><p style="margin-left: 30px"><strong>6. Get an extra pension for your dependants</strong><br>A pension will be paid to your eligible dependants, such as a spouse, when you die.<br><br>When you take your pension benefits, you could give up part of your own pension entitlement in order to give extra pension to your dependants.<br><br>If you choose this option:<br></p><ul style="margin-left: 60px"><li>You give up part of your pension – how much you give up will depend on your age and gender, as well as those of your dependant.</li><li>Your named dependant will get a percentage of your normal pension when you die.<br></li></ul><p style="margin-left: 30px">It’s important to keep in mind that if your named dependant dies before you, then the money you’ve given up will be lost and won’t go back into your pension. You also cannot change your named dependant.<br><br></p><p style="margin-left: 30px">For more <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_21" data-sf-ec-immutable="">information on the extra pension for your dependants and the other retirement options, check the Guide to retirement options Read as You Need Guide</a> in the Knowledge Hub.&nbsp;</p><p><strong style="background-color: rgba(0, 0, 0, 0); color: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">&nbsp;</strong></p><p><strong style="background-color: rgba(0, 0, 0, 0); color: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">Try each option using the Pension Planner</strong><br></p><p>The Pension Planner lets you change the amount of lump sum you may be able to take when you retire, and see how this then affects your annual pension. The Planner also shows what it may look like if you were to take the level pension option.<br></p><p>If you pay into BRASS, you can use the Planner see how your BRASS fund works as part of your lump sum. <br></p><p>You might use the planner to compare different scenarios, and see how they might affect your lump sum and annual pension. The planner is available in the <a href="https://member.railwayspensions.co.uk/login" data-sf-ec-immutable="">‘Planning for the future’ area of your myRPS account</a>.&nbsp;</p><p>&nbsp;</p><h3>I’m an Industry-Wide Defined Contribution (IWDC) member </h3><p>If you’re an IWDC member of the Scheme, there are 3 main options available to you when you decide to take your pension pot. The options all come with different tax implications, benefits and risks. In short, here are the options available for IWDC members of the Scheme.&nbsp; <br></p><p>If you’d like more information on the options outlined below, take a look at the <a href="https://member.railwayspensions.co.uk/iwdc-members/im-planning-to-take-my-iwdc-pot/how-i-can-take-my-iwdc-pot" data-sf-ec-immutable="">How I can take my IWDC pot page, under ‘IWDC’ members on your member website</a>. <br></p><p>The RPS doesn’t currently offer an annuity or drawdown option directly, so to access these you would need to transfer your pot to another provider.<br></p><p style="margin-left: 30px"><strong>1. Get a flexible income, taking it a bit at a time. This is known as drawdown.</strong><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"><br>A drawdown is a flexible income, which means you can take out cash (or drawdown on your pot) whenever you want to, until your pot runs out.</span></p><p style="margin-left: 30px">There’s more information about the types of drawdown available and how it works on the <a href="https://member.railwayspensions.co.uk/iwdc-members/im-planning-to-take-my-iwdc-pot/understanding-drawdown" data-sf-ec-immutable="">dedicated Understanding drawdown page</a>. <br></p><p style="margin-left: 30px">The Trustee has chosen Legal and General Investment Management (LGIM) to offer access to a drawdown facility. You can <a href="https://www.legalandgeneral.com/workplace/campaigns/rps-pas" target="_blank" data-sf-ec-immutable="" data-sf-marked="">learn more about the LGIM drawdown facility on their website</a>. However, you can also choose your own drawdown provider and we will transfer your funds to them.</p><p style="margin-left: 30px">&nbsp;</p><p style="margin-left: 30px"><strong>2. Get a regular, secure income. This is known as an annuity.</strong></p><p style="margin-left: 30px">An annuity is a policy that you buy using the money from your IWDC pot. An annuity gives you regular pension payments, and guarantees an income for the rest of your life or for a fixed-term. If it is a fixed-term annuity, it will guarantee an income for a set period of time.<br></p><p style="margin-left: 30px">If you’d like to take an annuity, you will need to transfer your pension pot to another provider who offers annuity options. It’s important to research all of the options available, to help you choose the right option for the lifestyle you want when you stop working. <br></p><p style="margin-left: 30px">You can <a href="https://member.railwayspensions.co.uk/iwdc-members/im-planning-to-take-my-iwdc-pot/understanding-annuities" data-sf-ec-immutable="">learn about the types of annuity and how they work on the Understanding annuities page</a>.</p><p style="margin-left: 30px">&nbsp;</p><p style="margin-left: 30px"><strong>3. Take all of the money in your IWDC pot as a cash lump sum, known as total encashment.</strong></p><p style="margin-left: 30px">Total encashment means taking all of your pension pot as a cash lump sum. The value of your pot will be paid directly to you in a single payment, and 25% of it (but normally no more than £268,275) will be tax-free. The rest of the payment will be taxed.&nbsp;&nbsp;<br></p><p style="margin-left: 30px">If you’d like to find out <a href="https://member.railwayspensions.co.uk/iwdc-members/im-planning-to-take-my-iwdc-pot/understanding-encashment" data-sf-ec-immutable="">how total encashment works and the types of encashment available, read the information on the Understanding encashment page</a>.</p><p style="margin-left: 30px">&nbsp;</p><p style="margin-left: 30px"><strong>4. Choose more than one option<br></strong>You can use your pension pot to take a cash lump sum, and to also buy an annuity, or to draw down on it by taking a bit at a time. If you’d like to <a href="https://member.railwayspensions.co.uk/iwdc-members/im-planning-to-take-my-iwdc-pot/how-i-can-take-my-iwdc-pot" data-sf-ec-immutable="" style="font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; white-space: inherit">learn more about how choosing more than one option works, visit the How can I take my IWDC pot page.</a><strong style="background-color: rgba(0, 0, 0, 0); color: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit"></strong><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">&nbsp;</span></p><p style="margin-left: 30px">&nbsp;</p><p><strong>Consider your options using the Retirement Modeller</strong></p><p>The Retirement Modeller shows the options you have to take your pension pot, and what your pension might be worth when you take it based on the option you choose.<br></p><p>You might use it to model a number of retirement scenarios, then compare the options and figures to help you decide which one might be right for you. You can give the Retirement Modeller a try for yourself in the <a href="https://member.railwayspensions.co.uk/login" data-sf-ec-immutable="">‘Planning for the future’ area of your myRPS account</a>.</p><p>&nbsp;</p><h3>Choosing the right option for you</h3><p>Deciding how you want to take your pension benefits is an important decision, and it can seem overwhelming. <br></p><p>As a member of the RPS, you have access to a number of resources that are designed to give you the information to help you choose what’s best for you, including the <a href="https://member.railwayspensions.co.uk/login" data-sf-ec-immutable="">pension planning tools in your myRPS account.</a> <br></p><p>We’ve created a short video that explains your retirement options in less than 5 minutes, available on the Scheme’s YouTube channel. There’s also a suite of informative videos to help you prepare for your life after work, so make sure you <a href="https://www.youtube.com/@railwayspensionscheme" data-sf-ec-immutable=""></a><a href="https://www.youtube.com/@railwayspensionscheme" target="_blank" data-sf-ec-immutable="" data-sf-marked="">subscribe to the channel if you haven’t already.</a></p><ul><li><a href="https://www.youtube.com/watch?v=IJ0qW1jzyDc&amp;list=PLSU9RHGNlJacz8f0QOYD4959PIGYOaCLr&amp;index=1" target="_blank" data-sf-ec-immutable="" data-sf-marked="">DB members can watch the video on retirement options here</a>.</li><li><a href="https://www.youtube.com/watch?v=4uGvpGkBf1A&amp;list=PLSU9RHGNlJacz8f0QOYD4959PIGYOaCLr&amp;index=2" target="_blank" data-sf-ec-immutable="" data-sf-marked="">IWDC members can watch the video on retirement options here</a>.<br></li></ul><p>If you’d like detailed information on your retirement options and how they work, check the dedicated Read as You Need guides.</p><ul><li><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_21" data-sf-ec-immutable="">DB members can find their guide to retirement options here</a>.</li><li><a href="https://cdn3.railpen.com/mp-sitefinity-prod/docs/default-source/rayn/guides-of-iwdc-members/a-guide-to-retirement-options.pdf?sfvrsn=36c5518a_21" data-sf-ec-immutable="">IWDC members can read their guide to benefit options from a defined contribution arrangement here</a>.</li></ul><p>&nbsp;</p><p><strong>Take financial guidance and advice</strong></p><p>You may want to get expert help with deciding on the option that’s right for you. It’s worth taking the time to read all of the information available to you before you make your decision. <br></p><p>You can find a <a href="https://member.railwayspensions.co.uk/pension-essentials/guidance-advice" data-sf-ec-immutable="">list of trusted pension experts and advisers on the Guidance and Advice page</a>. Using a financial adviser can be expensive, but it may give you a better long term outcome. <br></p><p>Liverpool Victoria (LV) has been chosen as the preferred partner to give RPS members access to financial advice. LV are able to help with pension and financial advice, and they also have dedicated team who have specific knowledge about the Scheme. <a href="https://www.lv.com/pensions-retirement" target="_blank" data-sf-ec-immutable="" data-sf-marked="">For more information visit the Liverpool Victoria website</a>. <br></p><p>&nbsp;</p><p><strong>IWDC members can get a free appointment with Pension Wise</strong></p><p>If you’re a member of the IWDC Section and you’re aged 50 or over, you may be able to get a free appointment with Pension Wise to discuss the options to take money from your pension pot. Pension Wise is a service from MoneyHelper, backed by the government. You can <a href="https://www.moneyhelper.org.uk/en/pensions-and-retirement/pension-wise" target="_blank" data-sf-ec-immutable="" data-sf-marked="">book your free appointment on the Pension Wise website.</a> <br></p>

<h3><strong 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">Our approach to investing</strong></h3><p>The money you pay into the Scheme (plus any returns), is invested into a wide variety of opportunities, companies and brands, which have been carefully selected to generate financial returns in line with the Trustee’s mission to ‘pay members’ pensions securely, affordably and sustainably’.</p><p>Spreading investments in this way helps to deliver better long-term outcomes for our members and gives greater flexibility and resilience against current and future risks.</p><p>This means that along with financial assets, like stocks and bonds, our investments also include more physical opportunities such as renewable energy, infrastructure, property and development in the UK, and others. These are known as <strong>real assets,</strong> and you can learn more about them below. </p><p>You can also read more about our approach to investing using the following links: </p><p><a href="/knowledge-hub/investments/our-approach-to-investing">Web page: Our approach to investing&nbsp;</a></p><p><a href="/knowledge-hub/news-and-views/blog/rps-blog/2024/06/17/your-pension-is-invested-on-your-behalf">Blog post: Your pension is invested on your behalf</a></p><p><br></p><h3><strong>Investing in Real Assets </strong></h3><p>Investing in real assets provides an opportunity for us to deliver attractive long-term returns for your pension.</p><p>Railpen, the Scheme administrator and the organisation responsible for investing members’ money, has a dedicated Real Assets Team. </p><p>They invest in physical assets, which generate positive, long-term returns for our members, such as&nbsp;<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">commercial and residential property and infrastructure, with a particular focus on positive social and environmental investments.</span></p><p>These types of investments are relatable because they are something we can see, hear, even touch in our day-to-day lives – like the houses we live in, where we go to work or shop, and even solar farms that provide green energy to local communities. </p><p>Example investments in this area, include 2 wind farms in Scotland - 1 in South Ayrshire and the other in Argyll and Bute - and 2 biomass investments in Sleaford, England and Port Talbot, Wales, all generating renewable energy to reduce dependence on fossil fuels. </p><p>We have also funded the redevelopment and extension of Monkwearmouth Hospital, an existing mental health facility in Sunderland for the Cumbria, Northumberland, Tyne and Wear NHS Foundation Trust.</p><p>You can read more about our investment in real assets using the following links: </p><p><a href="/knowledge-hub/investments/where-we-invest">Web page: where we invest</a><span style="text-decoration: underline"></span></p><p><a href="https://www.railpen.com/investing/where-we-invest/real-assets/" target="_blank" data-sf-ec-immutable="" data-sf-marked="">Railpen’s real assets page</a></p><p><strong>&nbsp;</strong></p><p><strong></strong><strong></strong></p><h3><strong>Choosing which Real Assets to invest in </strong></h3><p>When making their investment decisions, the Real Assets Team consider a variety of environmental, social and governance factors (ESG). Railpen believe these factors are not only a significant driver of investment outcomes, but also help make a positive contribution to the world our members retire into too. <a href="/knowledge-hub/investments/sustainable-ownership">You can read more about ESG in the Sustainable Ownership section of the member website.</a> </p><p>Alongside its commitment to Sustainable Ownership, Railpen is also a significant investor in something called 'place-based investments’ – investments that seek to secure financial returns for pension scheme members like you, while also seeking to have a positive local impact.</p><p>One such example is in Cambridge, where Railpen has several commercial and retail sites and is currently one of the city’s largest real asset investors. We will be covering Cambridge in greater detail in a separate blog soon, so stay tuned!</p><p>&nbsp;</p>

<p>Maternity, paternity, and adoption leave, as well as part-time working, can ultimately impact your pension contributions and pension benefits you receive. Here’s a straightforward guide to what you need to know.</p><p><strong>Maternity pay and leave</strong></p><p>You are entitled to statutory maternity pay if you:</p><ul><li>have worked for your employer for 26 weeks when you reach the 15th week before your due date, and</li></ul><ul><li>earn on average at least £123 per week.</li></ul><p>You’ll be entitled to 52 weeks statutory maternity leave and receive statutory maternity pay for 39 weeks. For the first six weeks, you’ll get 90% of your average weekly earnings. For the next 33 weeks, you receive 90% of your weekly earnings, or £151.20 a week, whichever is lowest. The remaining 13 weeks are unpaid. These are your statutory rights, but your employer may have a different policy.</p><p>Usually, the earliest your paid maternity leave can start is the 11th week before your baby is due. If your baby is born early, your leave starts the day after the birth.</p><p>You don’t have to take the 52 weeks you’re entitled to, but you must take at least two weeks off work following the birth.</p><p><strong>Paternity leave</strong></p><p>Under the same rules as statutory maternity pay, you are entitled to two weeks’ statutory paternity pay. The weekly rate is £184.03 or 90% of your average weekly earnings, whichever is lower.</p><p><strong>Adoption leave</strong></p><p>If you’re adopting or having a child through surrogacy, you’re usually entitled to paid time off work. This is subject to the same rules and requirements (as above) for maternity pay and the pay structure is identical.</p><p>If you’re adopting as a couple, only one person can get adoption leave. The other might be able to get paternity leave or shared parental leave.</p><p><strong>Shared parental leave</strong></p><p>Alternatively, you and your partner may be able to get shared parental leave and statutory shared parental pay. You can share up to 50 weeks of leave and up to 37 weeks of pay between you.</p><p><strong>Your pension during family leave&nbsp;</strong></p><p>Your pension Scheme membership will be continuous while you are off, unless you have an agreement with your employer for this to be different. Your pension contributions may change during family leave, because pension contributions are calculated using a percentage of your earnings.</p><p>If your pay reduces to nil, then your contributions will stop. Your employer may continue to pay them on your behalf, but you may have to pay these back once you return to work.</p><p>While you’re on family leave, your pension benefits won’t be affected (as long as you haven’t opted out and contributions are paid) and your overall benefits will still be based on your final average pay.</p><p>For more information, check the&nbsp;<a target="_blank" href="https://cdn3.railpen.com/mp-sitefinity-prod/docs/default-source/rayn/guides-for-active-(contributing)-members/guide-for-family-leave.pdf?sfvrsn=9db485ae_12">family leave guide</a>.</p><p><strong>The gender pension gap</strong></p><p>The career breaks women take to care for their families’ amount to £39,000 in lost pension savings, according to NOW: Pensions’ 2024 gender pensions gap&nbsp;<a href="https://www.nowpensions.com/app/uploads/2024/02/gender-pensions-gap-report-24.pdf" data-sf-ec-immutable="" target="_blank">report</a>. This is because, in many cases, women pause their careers or go part-time to care for their children (this is also known as the ‘motherhood penalty’).</p><p>The 2023 Women and Retirement <a href="https://adviser.scottishwidows.co.uk/assets/literature/docs/61096.pdf" data-sf-ec-immutable="" target="_blank">report</a>, produced by Scottish Widows, shows that 44% of UK mothers spend all 5 working days looking after their children (compared to just 16% of fathers). Some women consider having a longer career break, doing part-time work, freelancing or taking on multiple jobs. However, this means that many women might not be earning enough to pay into a private or workplace pension. People in the UK need to earn at least £10,000 a year in order to meet the criteria for pension<a href="https://www.moneyhelper.org.uk/en/pensions-and-retirement/auto-enrolment/automatic-enrolment-an-introduction" target="_blank" data-sf-ec-immutable="">&nbsp;</a><a href="https://www.moneyhelper.org.uk/en/pensions-and-retirement/auto-enrolment/automatic-enrolment-an-introduction" target="_blank" data-sf-ec-immutable="">auto enrolment</a>.</p><p>The 2024 gender pensions gap report also shows that women are far more likely to take time out of work to care for an elderly or sick family member.</p><p>What is more, the fact that they’ll have worked less years throughout their life could also&nbsp;disqualify them from receiving a&nbsp;<a href="https://www.gov.uk/new-state-pension" data-sf-ec-immutable="">State Pension</a>. To get any State Pension, people in the UK are required to have worked for 10 qualifying years. To get the full State Pension, 35 qualifying years of work are required. The 2023 Women and Retirement report also says that often women take around 10-year career gap to shoulder caring responsibilities which poses a real risk of not qualifying for any state pension further down the line. You can check your&nbsp;<a href="https://www.gov.uk/check-state-pension" target="_blank" data-sf-ec-immutable="">State Pension forecast</a>&nbsp;on the government’s website.</p><p><strong>Working part-time</strong></p><p>Many parents, especially mothers, choose to work part-time to balance work and family. While this offers flexibility, it affects your pension.</p><p>If your working hours change it’s likely your wages will too. That means how much you pay into your pension may also change. The amount that you pay into your pension is worked out using your full-time rate of&nbsp;<a href="/knowledge-hub/help-and-support/glossary">Section Pay </a>for your job, but is reduced for the hours you work.</p><p>If you go part-time then you’re still entitled to the same range of benefits as your full-time colleagues. However, the amount you pay in and the amount you receive will be based on the part-time hours you work. You can find out more in the&nbsp;<a target="_blank" href="https://cdn3.railpen.com/mp-sitefinity-prod/docs/default-source/rayn/guides-for-active-(contributing)-members/guide-to-part-time-work166beabb5d844e31a0839a6ff1bb075b.pdf?sfvrsn=4d5472da_9">guide to part-time work</a>.</p><p><strong>The gender pay gap</strong></p><p>The gender pay gap – the difference between the earnings of men and women – is deemed one of the major drivers of the pension gap. Women have been earning (and still earn) less than men on average, although&nbsp;<a href="https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/earningsandworkinghours/bulletins/genderpaygapintheuk/2023" data-sf-ec-immutable="">2023 figures</a>&nbsp;show a narrowing of this gap over time. In April 2023, women earned an average of 7.7% less than men per hour according to the ONS.</p><p>The significant gap in income means women have less capacity to meet increasing financial demands. The 2023 Women and Retirement report, by Scottish Widows suggests that on average, women are paid 15% less per hour across all jobs in the UK. The report also highlights that only 59% of women aged 22-65 are saving into a private pension, compared to 71% of men, while 62% of men are also expecting to be able to draw from other long-term savings sources in retirement, compared to just 50% of women.</p><p>It’s not all doom and gloom for women, though. The 2024 pension gap report shows a positive tendency of more women undertaking higher education, and therefore entering the workforce with higher salaries. If the trend continues, the gender pay gap is likely to reduce further over the coming years, as more young women go on higher education. This could mean better retirement outcomes too.</p><p><strong>What to do make the most of your pension with the Scheme</strong></p><ul><li>Make sure you register for a myRPS account so you can take advantage of all the guidance and pension planning tools available to help you prepare for retirement.&nbsp;<a href="/login">Register and/or log in</a> and check your account today.</li><li>Don’t forget your national insurance credits. Many benefits, including child benefits, automatically give you NI credit. Some women don’t sign up for child benefit because if their partner earns over £50,000 they would have to start paying it back.&nbsp; But you don’t need to actually receive the cash – you can just sign up to ensure your NI record and then your State Pension will be protected.</li><li>You could consider extending your working life. Your Railways Pension Scheme pension will offer you a Normal Retirement Age (NRA) but normally you can work and remain a member beyond this date. <a href="/login">Log in to your myRPS</a> account to check what your NRA is.</li><li>Putting in a small, extra regular amount now into AVCs (Additional Voluntary Contributions), could go a long way towards a better future. You can put as little as £2 extra per week. This means you make the most of the valuable tax relief you get and the longer you have your money invested, the more chance it has to grow. If you’re a DB member of the RPS, the main AVC scheme is called&nbsp;<a href="/defined-benefit-members/saving-more-BRASS-AVC-Extra/saving-more-with-BRASS">BRASS</a>.&nbsp; For IWDC members, you can&nbsp;<a href="/iwdc-members/Im-still-working/saving-more">save more with AVCs</a>.</li><li>If you’ve had a number of different jobs, don’t forget to check that you’ve kept track of all your past pension schemes. The Pension Tracing Service is free and can help you find a pension you’ve lost. Go to&nbsp;<a href="https://www.gov.uk/find-pension-contact-details" target="_blank" data-sf-ec-immutable="">gov.uk/find-pension-contact-details</a>&nbsp;and follow the online steps.</li></ul>

<p>You and your employer both pay money into your pension while you’re an active member of the Railways Pension Scheme (RPS). That money is then invested for your future, and can have an impact on the world around you too.&nbsp;</p><p>Railpen is the company responsible for investments </p><p>While<a href="/knowledge-hub/the-trustee"> the Truste</a>e has overall responsibility for the Scheme and your money, they entrust a company called <a href="https://www.railpen.com/" target="_blank" data-sf-ec-immutable="">Railpen </a>to look after it and invest your pension contributions on the Scheme’s behalf. </p><p>This in itself won’t have a direct impact on how much you’ll get in retirement. But Railpen are tasked with investing your pension in a way that helps to ensure it can be paid securely, affordably and sustainably. </p><p>Railpen recognises this is a significant responsibility and strives to give members like you the best possible outcomes in retirement, while also having a positive impact on the world you will retire into. </p><h3>Your pension is invested for the long term</h3><p>An 18-year-old who joins the rail industry today may not retire for 40 or so years. By then the world is likely to be a very different place to the one we live in today. </p><p>With this in mind, Railpen takes a long-term and patient approach to investing. This also means it can access investment opportunities on your behalf that aren't always available to other pension schemes.  </p><h3><span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: &quot;Open Sans Condensed&quot;, sans-serif; font-size: var(--font-size-h3); font-weight: bold; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">Your pension is invested in different ways</span></h3><p>Railpen invests primarily in 2 ways. It invests in:</p><ul><li>financial assets</li><li>real assets</li></ul><p>In this context, an asset is something that has the potential to grow in value over time like stocks, bonds and property (we’ll get on to these shortly).</p><h3>Your pension is invested in financial assets</h3><p>Railpen invests in financial assets through both public and private market opportunities. </p><p>Think of the public market as a financial marketplace where companies (that have satisfied set criteria) can raise money by selling stocks to investors. Companies in the public market are also knows as ‘listed companies’ and almost anyone can purchase shares in them. </p><p>By contrast, private market investing (as the name suggests) doesn’t happen on a public exchange. Historically, private markets have been fairly exclusive but they are now much more accessible. </p><p>Public investors can buy and sell at any time, while private investments focus more on the long term.</p><h3>Your pension is also invested in real assets</h3><p>As well as financial assets, like stocks and bonds, your pension money is invested in areas like renewable energy, infrastructure, property investments and development in the UK, and others. These are called real assets.</p><p>These types of investments are fairly relatable because they are something we can see, hear, even touch in our day-to-day lives – like the houses we live in, where we go to work or shop and even solar farms that provide green energy to local communities. &nbsp;</p><p>Investing in real assets provides an opportunity for us to deliver attractive long-term returns for your pension. </p><h3>Railpen considers a range of factors when deciding where to invest your pension</h3><p>Before Railpen decides where to invest your pension, they consider a range of factors. Along with the potential for good returns, this also includes any environmental, social and governance (ESG) factors which present both risks and opportunities. </p><p>Put simply, ESG are a set of standards that are used in the world of investments to measure the following:</p><ul><li>A company’s impact on society</li><li>It’s impact on the environment</li><li>How credible and transparent its working practices are</li></ul><p>Railpen seeks to invest in companies that perform well against ESG factors to help us deliver investment returns for our members. But not only that, Railpen engages with and uses its influence to enhance the value of the money it invests on your behalf. </p><p>They also look for ways to have a positive impact on the communities in which your pension money is invested. This means that ultimately by saving for a pension with the Scheme, you are not only saving for your future, but you are also potentially helping to contribute to a better world, perhaps without even realising it.<br></p><h3>Find out more about where, and how, your pension is invested</h3><p>We’ll be going into more detail about how Railpen invests your pension money in forthcoming blogs, including a more detailed look at Real Assets and the company’s recent investments in Cambridge. </p><p>In the meantime, you can find out more in the investments section of the website and on Railpen’s own website using the links below. </p><ul><li><a href="https://member.railwayspensions.co.uk/knowledge-hub/investments" data-sf-ec-immutable="">RPS website – investments section</a></li><li><a href="https://www.railpen.com/investing/" data-sf-ec-immutable="">Railpen website – investing section</a></li></ul><p>You can also discover more about Railpen’s approach to sustainable investments in <a href="https://www.railpen.com/knowledge-hub/reports/stewardship-report-2023/" data-sf-ec-immutable="">Stewardship Report 2023 at Railpen.com</a>. A shortened version of this report, focussing on the areas members have said is important to them, will be released later this year. <a href="https://cdn-suk-railpencom-live-001.azureedge.net/media/media/34deiw1y/so-member-report-2022_final.pdf" data-sf-ec-immutable="">You can read the 2022 version here</a>.&nbsp;</p><div><div><div id="_com_1"><p>&nbsp;</p></div></div></div>

<blockquote><p>The Money and Pensions Service (MaPS) also say teaching children about money from a young age is a “game-changer” as it helps develop essential skills they’ll need as adults.</p></blockquote><p>Next week (10 – 14 June) will mark the 15^th consecutive year of <a href="https://www.young-enterprise.org.uk/teachers-hub/financial-education/financial-education-programmes/my-money-week/" target="_blank" data-sf-ec-immutable="" data-sf-marked="">My Money Week</a>&nbsp;in the UK – an annual event that aims to help children and young people aged 3 to 19 build healthy relationships with money. It also aims to get them interested in and excited about learning more about money and how to use it in their daily life. This would help them gain the financial skills, knowledge and confidence needed to be able to make sound financial decisions and to thrive as adults.<br></p><p>Here are a few things to consider if you’re a parent wanting to make money conversations part of your child’s learning journey:<br></p><h4>Think about introducing the concept of saving for a pension early</h4><p>Pensions form an integral part of &nbsp;financial education. Although it may be tricky for little children to understand the concept of saving for a pension, introducing it to teenagers can help them get familiar with it from an early age and set them off to a good start when they start working. <br></p><p>You could try initiating some&nbsp; conversations about pensions at home or asking older relatives in receipt of a pension to explain the concept, providing a realistic example with themselves. Talking openly and using real-life examples to help aid understanding may help your child to really understand the value of pension saving and to pick up the skills they will need in future.<br></p><p>It can be difficult to talk pensions especially if you feel that you don’t understand it well enough yourself. But it’s important to remember that you don’t need to be a pensions guru to help your children get their heads around the basics. A bit of prep work beforehand might help with keeping the conversation going on a regular basis. Keeping it simple and using everyday words might also help. The <a href="https://member.railwayspensions.co.uk/" data-sf-ec-immutable="">‘Pension essentials’ section</a> of this website may be a great starting point for this. &nbsp;<br></p><h4>Make learning about money habits part of daily life</h4><p>There are plenty of ways you could make learning about money part of your daily routine and enrich your child’s experiences by bringing money matters to life at home.<br></p><p>A simple example that a lot of parents perhaps do already is to give children a piggybank and to introduce saving to them that way.<br></p><p>It is recommended to introduce pocket money from a young age as well as a way to build habit and to teach considerate money spending and effective prioritising. This is closely linked to children being able to differentiate between needs and wants, essential spending and spending for pleasure i.e. paying the mortgage or the council tax is more important than treating the family to a meal out. It might help to make it relevant to their world and give examples with things they can relate to i.e. it’s more important to buy a new pair of shoes than a new car transporter or a new backpack, for example&nbsp;</p><p>It may also be helpful to get them involved in saving decisions so they can see how it works in practice i.e. we are saving for X so we’ll cut back on Y to make the money we need to be able to afford X. Older children may well be able to get their heads around interest and compounding too so it might be worth touching on these terms as part of their learning journey.<br></p><p>Another important information to consider passing on might be that money isn’t infinite and we need to make careful decisions about how and where we spend it. Bringing the concept of borrowing to their attention might be helpful too i.e. if you borrow money you have to pay it back.<br></p><p>Supporting children to build healthy relationships with money is a journey and takes time. Talking openly and practising in real life may help them grow up with the skills they need to manage their finances wisely as adults. <br></p><h4>Talk about the importance of staying vigilant to financial scams at all times</h4><p>Scams have proved to be a significant threat to our financial wellbeing in recent years. Many people choose to manage their finances purely online these days and this tendency is likely to evolve in the years to come. So it’s important to teach children about the warning signs of scams.<br></p><p>Older children using mobile phones and applications can be an easy target as they are likely to have less knowledge of the warning signs. It’s important they need are aware of the risks and build up their knowledge about what to look out for while online. <br></p><p>Government-backed support service MoneyHelper has said the main things to teach children to protect them from online scams are to: &nbsp;<br></p><ul><li>create strong passwords and have them share these with you</li><li>never share their personal details with anyone else or on websites</li><li>only use well-known apps, websites and games – watch out for fake</li><li>be cautious about opening links, especially if they’re from someone they’ve never met</li><li>beware - if it sounds too good to be true, then it probably is – and could be a scam</li><li>show you messages that are asking them for money – as these are likely to be scams.<br></li></ul><p>You can also set parental controls on their mobile phone and any devices that are connected to the internet. <br></p><h4>Tap into the resources available to help you talk money with children more effectively</h4><p>There is a lot of information and resources available online to help make money conversations easier for you and helpful to your child. We’ve listed some below but a simple Google search might help uncover some more if the ones below don’t suffice. <br></p><h3><strong>My Money Week resources</strong><br></h3><p><a href="https://www.young-enterprise.org.uk/teachers-hub/financial-education/financial-education-programmes/my-money-week/" target="_blank" data-sf-ec-immutable="">My Money Week campaign</a> offers free resources for children aged 3 to 19. You’d need to create a free account on their website to access them, though.<br></p><h3><strong>Talk Learn Do campaign resources by Money &amp; Pensions Service</strong> <br></h3><p><a href="https://maps.org.uk/en/our-work/talk-learn-do" target="_blank" data-sf-ec-immutable="" data-sf-marked="">Talk Learn Do</a>&nbsp;is a free tool aimed to help parents and carers teach children about money. It offers resource in different formats, including video, to help aid children’s understanding of money matters. <br></p><h3><strong>MoneyHelper talk money resources to help you talk money with family and friends</strong><br></h3><p><a href="https://www.moneyhelper.org.uk/en/family-and-care/talk-money" target="_blank" data-sf-ec-immutable="">MoneyHelper</a> offer a whole host of free information and resources to utilise. From articles on different money topics – to tools and calculators – to videos – the website is packed full of information to help you have effective money conversations with family and friends. <br></p><h3><strong>BBC Teach Class Clips</strong><br></h3><p>The <a href="https://www.bbc.co.uk/teach/class-clips-video/articles/zkh8cqt" target="_blank" data-sf-ec-immutable="">The clips</a> comprise 4 short films aimed at providing teenagers with a the information they need to be able to understand common money terms and concepts such as credit, debt, pension, interest and more.<br></p>

<p>It’s natural to feel apprehensive about planning for your future. Retirement is a huge life change, and with so much information in front of you it can be difficult to know where to start. </p><p>But even doing a small amount of planning for your life after work could improve the retirement outcome you get, and the retirement lifestyle you’re able to have. </p><p>Here’s why, and some of the other benefits of planning ahead:</p><h3>You’re likely to lead a better retirement lifestyle</h3><p>If you have a clear picture of the retirement you want, you’ll be more likely to achieve it. You wouldn’t get in your car without having a destination in mind, would you? And without an idea of where you’re going, you’d find it very difficult to plan your route, or think about what you’ll do when you get there. </p><p>The same goes for your retirement - a small amount of planning goes a long way. And when you start planning, you’ll be surprised at how quickly you start to build up a picture of your life after work. If you can picture the retirement lifestyle you want, it’ll be much easier to steer a clear course to get there.</p><h3>You can build up your financial confidence<strong> </strong></h3><p>If you have an idea of the retirement lifestyle you want, the chances are with that goal in mind you’ll make better financial decisions to reach it. </p><p>As you start to make better decisions, research shows you’re likely to feel more confident about your finances. And as time progresses you’ll gain more financial experience, and your financial knowledge is likely to grow as a result. Taking small steps with planning for life after work could really pay off in the long run.&nbsp;</p><h3>You may see a positive impact on your mental health</h3><p>Retirement is an enormous milestone, and it should be an exciting time. But if it’s causing you more worry than excitement you’re not alone. As the cost of living continues to soar, many of us are anxious about our finances. Doing a small amount of planning could be key to easing some of that anxiety.</p><p>Research proves that the more planning you do, the more comfortable you’re likely to feel about your future, and even your existing financial position. If the thought of retirement is causing you sleepless nights, knowing you’ve started making plans for your life after work could be an answer to getting your 8-hours rest. </p><p>To help you prepare for your future, read our simple guide to retirement planning <a href="https://member.railwayspensions.co.uk/knowledge-hub/news-and-views/blog/rps-blog/2024/05/15/your-step-by-step-guide-to-planning-ahead" data-sf-ec-immutable="">The power in preparing for your future part 1: Your step-by-step guide to planning ahead</a>.</p><h3>Help is at hand, if you need it</h3><p>You may want to take expert help before making any changes to your pension. Using an adviser can be expensive, so make sure you read all of the free information available at <a href="https://www.moneyhelper.org.uk/en" target="_blank" data-sf-ec-immutable="" data-sf-marked="">MoneyHelper</a> and <a href="https://www.gov.uk/" target="_blank" data-sf-ec-immutable="" data-sf-marked="">Gov.uk</a>.</p><p>If you’d like professional advice on your financial decisions, you might benefit from speaking to a financial adviser. In order to operate, financial advisers must be authorised by the <a href="https://www.fca.org.uk/" target="_blank" data-sf-ec-immutable="" data-sf-marked="">Financial Conduct Authority (FCA)</a>, so make sure you check who you’re dealing with.&nbsp;</p><p><a href="https://www.lv.com/pensions-retirement" data-sf-ec-immutable="">Liverpool Victoria</a>&nbsp;(LV) is the chosen partner to give Railways Pension Scheme members financial advice. LV is regulated by the FCA, covers all areas of pension and financial advice and has a dedicated team, with specific knowledge on the Scheme. You can <a href="https://member.railwayspensions.co.uk/pension-essentials/guidance-advice">learn more about LV on the ‘Guidance and advice’ page</a>. <br></p> <p>Your Railways Pension Scheme (RPS) member website is packed with helpful planning tips and useful information about your pension, <a href="https://member.railwayspensions.co.uk/pension-essentials/guidance-advice">including a list of trusted pension experts and professional advisers</a>.&nbsp;</p><p></p>

<p>Research shows that those who plan ahead for life after work are more likely to feel positive about their current and future financial situation. They’re also more likely to enjoy better retirement outcomes and experiences than those who don’t.* The more prepared you are for retirement, the more likely you are to lead a better retirement lifestyle as a result. </p><p>You can read about why planning ahead is so important, and learn why it might be beneficial for you to take financial advice in&nbsp;<a href="https://member.railwayspensions.co.uk/knowledge-hub/news-and-views/blog/rps-blog/2024/05/16/the-power-in-preparing-for-your-future-part-2" data-sf-ec-immutable="">The power in preparing for your future part 2: Why it’s so important to think ahead</a>.</p><p>As a member of the Railways Pension Scheme (RPS), you have access to a wide range of pension planning tools to support you on your planning journey. You’ll need a myRPS account to use the planning tools, so <a href="https://member.railwayspensions.co.uk/register" data-sf-ec-immutable="">make sure to register for one if you haven’t already</a>. &nbsp;<br></p><h3>How to plan ahead:</h3><p>If the thought of planning for retirement leaves you scratching your head, take a look at these 4 cost-free practical tips. </p><p>You could work through them one at a time over the course of a few weeks, breaking them down into manageable tasks. </p><ol><li><strong>Think about your current financial situation </strong><p>If other financial commitments are getting in the way of your retirement planning, you’re not alone. As the cost of living increases, statistics show that we’re having to fork out more money to pay for life’s essentials, which makes it more difficult to put money aside for your future. </p><p>If you find yourself tightening your purse strings, you might start by thinking about how you currently manage your money, beyond your pension. </p><p><a href="http://www.money-fit.co.uk/railpen" data-sf-ec-immutable="">MoneyFit</a> can help you with this – it’s a cost-free, simple tool which can help you take control of your financial wellbeing. It offers practical tips to manage your money, budget and possibly free up more to save for your life after work. MoneyFit is completely anonymous, and your results are tailored to your personal financial circumstances. You can try MoneyFit in the <a href="https://member.railwayspensions.co.uk/login" data-sf-ec-immutable="">‘Planning for the future’ section of your secure myRPS account</a>. </p><p>&nbsp;</p></li><li><strong>Work out how much income you might need</strong><p>It’s proven that if you have a target to aim for, you’re more likely to achieve your goal. And, the earlier you set your target, the more time you’ll have to achieve it. You could set your target by thinking about how much retirement income you’ll need to live the lifestyle you want. </p><p>To work out how much retirement income you might need, think about how much you’re likely to spend on essentials such as bills, rental or mortgage costs and medical expenses. You could also consider any other costs, such as holidays and hobbies. Write your expected costs down so you can refer back to them. To help you on your way, there’s a <a href="https://member.railwayspensions.co.uk/defined-benefit-members/Im-planning-to-take-my-pension/how-much-Ill-need" data-sf-ec-immutable="">general guide to retirement costs on the ‘How much I’ll need for retirement’ page</a>. </p><p>To get a personalised estimate of how much you might need when you retire, <a href="https://member.railwayspensions.co.uk/login" data-sf-ec-immutable="">try the Retirement Budgeting Calculator.</a> You can add your own individual costs to find out how much the lifestyle you hope for could cost each year. The total cost will give you a general target to aim for with your retirement income. </p><p><strong>&nbsp;</strong></p></li><li><strong>Think about how you’ll pay for your retirement</strong><p>It’s likely you’ll have several sources of income when you retire. This could include your RPS pension, your State Pension, other pensions and savings or investments. Find out what they’re each likely to be worth, and add them together to see how much you might have in total. </p><p>If you’ve ever changed jobs, it’s possible that your RPS pension is not your only workplace pension. By spending some time tracing your old pensions, you could recover pension money that might help to pay for your retirement lifestyle. You can <a href="https://www.gov.uk/find-pension-contact-details" target="_blank" data-sf-ec-immutable="" data-sf-marked="">find more information on tracing lost pensions at Gov.uk.</a> </p><p>Remember, the total amount of income you might have in retirement may change depending on your life expectancy, changes in the law such as tax allowances and rates of inflation. </p><p>You could then compare your total likely income with your income target from the Retirement Budgeting Calculator. </p><p>If the numbers don’t add up, there are a number of things you can do before you stop work. You might decide to:</p><ul><li>Top up your pension with <a href="https://member.railwayspensions.co.uk/pension-essentials/saving-more" data-sf-ec-immutable="">Additional Voluntary Contributions (AVCs)</a></li><li>Think about changing your retirement age, to delay taking your pension</li><li>Clear your debts before you retire<p>&nbsp;</p><p>If you’re a defined benefit (DB) member, you can learn more about the <a href="https://member.railwayspensions.co.uk/defined-benefit-members/Im-planning-to-take-my-pension/making-the-right-decision" data-sf-ec-immutable="">actions you can take if the numbers don’t add up on the ‘Making the right decision’ page</a>.</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">If you’re a defined contribution (DC) member, </span><a href="https://member.railwayspensions.co.uk/iwdc-members/im-planning-to-take-my-iwdc-pot/making-the-right-decision" data-sf-ec-immutable="" style="font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; white-space: inherit">visit the ‘Making the right decision’ page for DC members to learn more</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></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">&nbsp;</span></p></li></ul></li><li><strong>Experiment with the planning tools in your myRPS account</strong></li></ol><p>Your income from your RPS pension may change depending how and when you take your pension. Taking the time to understand your options could really pay off, as it could mean you’re able to afford a better retirement lifestyle.</p><ul><li>If you’re a <a href="https://member.railwayspensions.co.uk/login" data-sf-ec-immutable="">defined benefit (DB) member, try the Pension Planner in your myRPS account</a>. It shows what your annual income might be when you stop work, and how this might be affected by different ways of taking your pension. <a href="https://member.railwayspensions.co.uk/defined-benefit-members/Im-planning-to-take-my-pension/making-the-right-decision" data-sf-ec-immutable="">You can watch a short video on how to use it, and learn more about making the right decision for you here</a>.<strong></strong></li><li>If you’re a <a href="https://member.railwayspensions.co.uk/login" data-sf-ec-immutable="">defined contribution (DC) member, try the Retirement Modeller</a> to see what your pension pot might be worth when you retire, and the different ways you can choose to use that money. <a href="https://member.railwayspensions.co.uk/iwdc-members/im-planning-to-take-my-iwdc-pot/making-the-right-decision#:~:text=You%20can%20use%20the%20MoneyFit,pension%20pot%20for%20the%20future." data-sf-ec-immutable="">You can watch a video on how it works, and learn more about making the right decision for you here</a>.<strong></strong></li></ul><div><br clear="all"><div id="ftn1"><p>*Research by the Pensions Management Institute (PMI) and Standard Life</p></div></div>

<p>For today’s work life alumni, retirement has changed significantly since their parents’ day. There’s greater uncertainty about the future and new retirees are exposed to a greater choice about when and how to retire, or whether to retire at all. </p><p>Everyone’s circumstances are different. What’s true for many new retirees, though, is that stopping work can be a difficult transition. It’s about re-starting life at later age – it may sound exciting, almost adventurous, but research and word of mouth tell us it can be quite challenging and nerve-racking for some, especially for those retirement ‘freshers’ who don’t enjoy change as much. </p><p>This is why we’ve pulled together our top tips to help ease you into your retirement and enrich your experiences.</p><h3>Socialise!</h3><p><a href="https://www.cnbc.com/2023/03/10/85-year-harvard-happiness-study-found-the-biggest-downside-of-retirement-that-no-one-talks-about.html" target="_blank" data-sf-ec-immutable="" data-sf-marked="">An ongoing study by Harvard University</a>, found that the number one key to a happy life is ‘social fitness’. The most consistent finding the researchers reported on is that positive relationships keep us happier, healthier and help us live longer. The same study found that retirees don’t miss working, they miss the people. It said the number one challenge people face in retirement is not being able to cultivate and replace the social connections they had while they were working. </p><p>We are social creatures who thrive on companionship, but as we get older and our lives get busier, relationships can be difficult to maintain. As we all know, plants need watering to flourish, and so do our relationships. Here are a few ideas for you to consider if you think you might benefit from enriching your social life:</p><ul><li>Give old friends a call <p>It could’ve been 20 years, 10, or even 1, since you last got together and in the quieter moments, you may find yourself wondering about them. A recent study of more than 5,900 people found that people often underestimate how much old friends appreciate hearing from them. You could spend the rest of your lives creating new memories together. What’ve you got to lose? </p></li><li>Seek out exciting experiences with friends and partners <p>Think of your most spontaneous moments over the years. Maybe you hopped on a train with your best friend without checking the destination. Perhaps when you heard ‘I’ve had the time of my life’ at parties, everyone mistook you for Patrick Swayze. Make things exciting by trying new activities with friends and partners, things neither of you has done before. Mutual vulnerability opens new avenues for connection. </p></li><li>Take a walk with a friendly face <p>Research shows that 30 minutes of walking with another person boosts your mood, improves your health and staves off chronic conditions. Having a positive conversation with another person releases the feel-good hormone oxytocin. Coupled with the endorphins released by light exercise and nature’s gifts to the senses, you’ll anticipate your next walk before this one’s over.</p></li></ul><h3><span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit; font-size: inherit">Keep active and stay healthy</span></h3><p>It’s a myth that retirement is a passive stage of life. It’s actually quite the opposite for a lot of people but the key is proactivity – it’s up to you to make stuff happen and to stay physically and mentally sharp as you enter this new phase of life. </p><p><a href="https://www.mentalhealth.org.uk/our-work/public-engagement/mental-health-awareness-week" target="_blank" data-sf-ec-immutable="">Mental Health Awareness Week</a> (13 – 19 May) is to take place soon and this year’s theme is Movement: Moving more for our mental health. Staying active is scientifically proven to boost your mood, improve your sleep and your energy levels. Exercising looks different for everyone. It could be as simple as standing up from your chair regularly and walking between rooms, a 20-minute walk in the park to breathe in the fresh air, going for a run or doing a fitness class either at home or at the gym.</p><p>Research shows you’re more likely to stick to exercise if it’s part of your routine. You could walk to the shops instead of taking the bus, or join an exercise class. You might be surprised at how much healthier and happier you feel!</p><h3>Expand your horizons</h3><p>Life keeps evolving even when your working days are over. It might be that you may want to try a new hobby, or to pursue a passion you simply hadn’t had the time for so far, or it might be that you want to dedicate some of your time to charitable work and volunteering. Whatever route you go down, remember each new interest or activity can open doors and expand your horizons in unexpected ways.</p><p>Once you’re past the inevitable ‘honeymoon phase’ of retirement and you’ve ticked some quick wins you’ve been patiently waiting for while still working, a burst of boredom may strike. Use this quiet time for self-reflection. It presents a great opportunity to clarify your priorities, re-evaluate your lifestyle and sense of purpose, and think about what you may want to fill in your free time with. <br></p>

<p>The government recently announced that the State Pension will increase by 8.5%, under its commitment to the State Pension triple lock. The triple lock ensures that the State Pension doesn’t lose value over time. You can&nbsp;<a href="https://commonslibrary.parliament.uk/the-triple-lock-how-will-state-pensions-be-uprated-in-future/" target="_blank" data-sf-ec-immutable="">learn more about it here.</a></p><p>With the increase, you might be able to claim up to approximately £11,500 a year in State Pension from the government. </p><p>While that might <em>sound</em> like enough to help you get by, the reality is if you’re planning to live on the State Pension alone you may find yourself short of cash. </p><p>Here’s why the State Pension might not be enough for you to live on, and our top tips to help you save more for your life after work with your RPS pension, including <a href="https://member.railwayspensions.co.uk/pension-essentials/saving-more" data-sf-ec-immutable="">making Additional Voluntary Contributions (AVCs).</a></p><h4>&nbsp;</h4><h4>Why the State Pension might not be enough:</h4><h3>The cost of retirement is higher than ever</h3><p>The Pensions and Lifetime Savings Association (PLSA) has released their updated <a href="https://www.retirementlivingstandards.org.uk/" target="_blank" data-sf-ec-immutable="">Retirement Living Standards (RLS).</a>&nbsp;The RLS estimate how much you might need in retirement each year, based on 3 different standards of living – minimum, moderate and comfortable. </p><p>According to the RLS, a single person needs £14,400 to afford a ‘minimum’ standard of living. That means even if you’re able to claim the full amount of State Pension, you’ll be approximately £2,900 short of a minimum standard of living in retirement. And that’s without budgeting for any extra personal costs, such as mortgage or rental outgoings.</p><p>To get an idea of how much you might need <a href="https://member.railwayspensions.co.uk/login" data-sf-ec-immutable="">try the Retirement Budgeting Calculator in your myRPS account</a>. It’s based on the RLS and lets you add your personal lifestyle costs, including how many holidays you’d like per year, your motoring or transport costs and where you plan on living. <br></p><h3><br>You might not be able to claim the full amount of State Pension</h3><p>The amount of State Pension you’ll get depends on your National Insurance (NI) record. To claim the full amount of the State Pension, you’ll need 35 qualifying years of NI contributions or credits.* You can <a href="https://www.gov.uk/check-state-pension" target="_blank" data-sf-ec-immutable="">check your State Pension forecast at Gov.uk</a>. </p><p>If you’ve previously worked part-time, you might not have paid as many NI contributions or credits over the years. And, this could impact the amount of State Pension you might be able to claim later. </p><p>You may be able to ‘top up’ your NI record by paying voluntary contributions, if you’re eligible. You can <a href="https://www.gov.uk/voluntary-national-insurance-contributions" target="_blank" data-sf-ec-immutable="">learn more about Voluntary National Insurance at Gov.uk</a>.<br><br></p><h3>You'll need to wait until your State Pension age (SPA) to claim it<br></h3><p>You won’t be able to claim your State Pension until <a href="https://www.gov.uk/state-pension-age" target="_blank" data-sf-ec-immutable="">your State Pension age (SPA)</a>, which is currently age 66 for both men and women. </p><p>But, the SPA is set to increase again from May 2026. So, if you’re planning to retire before you reach your SPA, you’ll need to consider how you’ll pay for your retirement during that time.<br><br></p><h3>The State Pension is currently less than the National Minimum Wage<em></em></h3><p>In life after work, most of us would like to continue the lifestyle we’ve enjoyed while working. But, living off the State Pension alone might mean it’s difficult to maintain that standard of living. Here’s an example to explain why. &nbsp;</p><p>If, while you were working, you earned the National Minimum Wage and worked 35 hours per week, your yearly income would be approximately £19,000. </p><p>If you then reach State Pension Age (SPA), and are able to claim the full amount of State Pension from the government, your State Pension income would be approximately £11,500 a year. </p><p>Comparatively, your State Pension income would be roughly £7,500 less than the income you had while you were working. This could significantly impact the lifestyle you’re able to afford in retirement. What’s more, the difference could be even greater if you’re not able to claim the full amount of State Pension. <br><br></p><h3>Your State Pension might not increase if you live abroad</h3><p>Moving abroad to spend retirement under the sun is something many of us have dreamt about. While the idea of life after work in another country might capture your interest, it’s important to consider that your State Pension might not increase while you’re living there.</p><p>Currently, your State Pension will only increase each year if you live in:</p><ul><li>The&nbsp;<a href="https://www.gov.uk/eu-eea" target="_blank" data-sf-ec-immutable="">European Economic Area (EEA)</a></li></ul><ul><li>Gibraltar</li></ul><ul><li>Switzerland</li></ul><ul><li><a href="https://www.gov.uk/government/publications/state-pensions-annual-increases-if-you-live-abroad/countries-where-we-pay-an-annual-increase-in-the-state-pension" target="_blank" data-sf-ec-immutable="">Countries that have a social security agreement with the UK</a>&nbsp;(but you cannot get increases in Canada or New Zealand)</li></ul><p>You will not get yearly State Pension increases if you live outside these countries. However, your State Pension will go up to the current rate if you move back to the UK. </p><p>You can learn more about how your State pension is affected, including how you can claim it if you move abroad at <a href="https://www.gov.uk/state-pension-if-you-retire-abroad/rates-of-state-pension" target="_blank" data-sf-ec-immutable="">Gov.uk</a>. </p><h4>&nbsp;</h4><h4>How you could save more:</h4><p>As a member of the Railways Pension Scheme (RPS), you’re already saving towards a retirement income which you’ll get separate to your State Pension.</p><p>You can find out how much you might get from your RPS pension by using the <a href="https://member.railwayspensions.co.uk/login" data-sf-ec-immutable="">pension planning tools in your myRPS account.</a></p><p>Here’s how being part of the RPS is already helping you save towards your retirement, and how you could save even more for your future…</p><h3><br>You’re increasing your savings with tax relief</h3><p>A fantastic thing about saving with your RPS pension is that its tax efficient, because the money you pay in is taken from your salary before tax is deducted. This means you pay less tax on your salary. Over the years this can add up to a substantial amount.</p><p>The amount of tax relief you get depends on the rate of income tax you pay. Basic-rate taxpayers (who pay 20% income tax) get tax relief at the same rate. If you’re a higher-rate taxpayer you get 40% tax relief, and additional-rate taxpayers get 45%.</p><p>For example, if you’re a basic-rate tax payer (who pays 20% income tax) and put £100 into your pension, it would actually only cost you £80. That’s because the other £20 comes from tax relief.</p><p>You can pay in as much money as you want into your pension, but there’s limits on the amount of pension savings that benefit from tax relief each year, before you have to pay tax. You can <a href="https://member.railwayspensions.co.uk/pension-essentials/pension-tax-limits" data-sf-ec-immutable="">learn about the limits, and watch a short video on how tax relief works on the Pension tax limits page</a>. <br><br></p><h3>You can pay more in with Additional Voluntary Contributions (AVCs)</h3><p>‘Topping up’ your pension with AVCs could help pay for your life after work. AVCs are extra contributions you pay into the Scheme, on top of the regular contributions you and your employer pay in while you’re working. </p><p>AVCs might help you save more, particularly if you’re thinking about taking your pension early, or before your State Pension Age (SPA).&nbsp; &nbsp;</p><p>You can pay in as little as £2 a week, and you can make one-off payments if you wish. If you earn extra money like overtime or bonuses, or if you receive a monetary gift, paying it into AVCs is an excellent way to boost your potential retirement savings. Plus, you get tax relief on the money you pay in, up to certain limits. </p><p>If you want to start paying AVCs, you should speak to your employer. Here’s where you can find more information:</p><ul><li>If you’re a defined benefit (DB) member, the main AVC arrangement is called BRASS. <a href="https://member.railwayspensions.co.uk/defined-benefit-members/saving-more-BRASS-AVC-Extra/saving-more-with-BRASS" data-sf-ec-immutable="">Visit the Saving more with BRASS page to find out more</a>. &nbsp;</li><li>If you’re an IWDC member, you can save more by paying more contributions. <a href="https://member.railwayspensions.co.uk/iwdc-members/Im-still-working/saving-more" data-sf-ec-immutable="">Visit the Saving more with Additional Voluntary Contributions (AVCs) to learn more</a>.</li></ul><p>The <a href="https://member.railwayspensions.co.uk/login" data-sf-ec-immutable="">MoneyFit tool in your myRPS account</a> can help you manage your money, and offer helpful tips to possibly free-up a little more to contribute to your pension savings.<br><br></p><h3>You can take control of your pension and plan for the future </h3><p>You can see how much your RPS pension might be worth when you retire using the pension planning tools in your secure myRPS account. If you haven’t already, <a href="https://member.railwayspensions.co.uk/register" data-sf-ec-immutable="">you can register for your myRPS account here</a>. </p><p>With an online account, you can request an estimate of your pension benefits quickly and easily. This will give you an idea of what your RPS pension might be worth, based on your current pension payments. </p><p>You can then try the pension planning tools in your account to see how saving more might make a difference to your retirement savings. Using the planning tools you can adjust the amount you pay in, and see how contributing more with AVCs could boost your savings. </p><ul><li>Defined Benefit (DB) members can use the Pension Planner tool.</li><li>Industry-Wide Defined Contribution (IWDC) members can use the Retirement Modeller.</li></ul><p>&nbsp;</p><p>*<em>Figures correct as at April 2024, but may be subject to change. Full details can be found at </em> <a href="https://www.gov.uk/new-state-pension/what-youll-get" target="_blank" data-sf-ec-immutable="" data-sf-marked=""><em>gov.uk/new-state-pension/what-youll-get</em></a><em>.</em></p>

<p>Before we get to the ‘G’, let’s break down what ‘ESG’ stands for: economic, social and governance (ESG). It is the role of the Sustainable Ownership team at Railpen (the investment manager of the Scheme) to understand which ESG issues are most likely to have an impact on the financial performance of the companies your pension is invested in, and to improve companies’ behaviour in this respect. <br></p><p>Although some people think of ‘E’ or ‘S’ issues such as climate change or workforce treatment when they hear the term ‘ESG’, the ‘G’ is perhaps one of the most important issues for the companies we invest in to get right. This is because the good governance of a company is foundational to its long-term success and prosperity.&nbsp; And this is what this blog will focus on. <br></p><p>Interestingly, in January 2024, many of you said that governance – how well the companies your pension is invested in are being run – continues to matter the most to you. You also said you trust our judgement and want us to use our influence to encourage positive change in those companies. Railpen will continue to provide regular updates to members on their work in this area.<br></p><h3>Corporate governance and your pension<br></h3><p>In the world of pensions, corporate governance is all about making sure the companies we invest our members’ retirement income in are: <br></p><ul><li>led by a diverse group of people with the right expertise and experience</li><li>supported by robust systems and processes, and are </li><li>influenced by the perspectives of their shareholders (like Railpen)<br></li></ul><p>Good corporate governance can be subjective depending on the purpose of a business. In its most straightforward meaning, it refers to the people at the top doing a good job across all aspects of managing the company while being supported by the right kinds of systems and processes across the organisation. <br></p><p>Whether a company is well-run is one of the most important factors in whether it performs well. Railpen wants the companies it chooses to invest in to do (very) well because this has a direct impact on the return on the investment they’ve made, and ultimately on members’ retirement outcomes. <br></p><p>This is why Railpen has a strong focus on governance and strives to ensure the businesses it chooses to invest in have a healthy culture and strong processes at every level. It tries to influence companies to do better through using some of the wide variety of tools we have at our disposal. These include:<br></p><ul><li>Using its voting power at company meetings (Annual General Meeting – AGM) to publicly escalate concerns when insufficient action is being taken in relation to governance-related issues.</li><li>Regular, open conversations with companies and supporting them to address the issues they are facing. </li><li>Advocating for change if they believe certain tweaks need to be made to laws and regulations to support companies and individuals to make sustainable choices.</li><li>Sanctioning companies through ‘divestment’ or choosing to remove them their investment portfolio. Railpen would take this step if we are not noticing the positive change in their actions and behaviour we were hoping to see. <br></li></ul><h3>Driving meaningful change for better financial outcomes for members</h3><p>We’ve highlighted above that one of the ways the Scheme’s investment manager can influence companies to improve corporate behaviour is by voting at their AGMs. Being able to vote for or against a company at its AGM ensures they can publicly hold company management to account. So, it’s essential that all shareholders are given a fair and proportionate voice.</p><p>Recently, Railpen had found that this wasn’t the case for some of the companies it invests in. It identified that some investees (shareholders) have more and stronger voting rights than others (unequal voting rights) which could potentially harm member outcomes. </p><p>To minimise the risk for members, in 2022 Railpen co-founded, and now chairs, the Investor Coalition for <a href="https://www.railpen.com/knowledge-hub/our-thinking/2023/icev-one-share-one-vote/" target="_blank" data-sf-ec-immutable="">Investor Coalition for Equal Votes (ICEV)</a>Equal Votes (ICEV) with the Council of Institutional Investors (CII) to tackle the issue in a different way. ICEV’s efforts focus on engaging with companies early in their existence - when they are still open to conversations and have the ability to make changes to the way in which they structure voting rights. The Coalition also engages with advisers, policymakers, commentators and the market to initiate changes that’d ultimately lead to improved financial outcomes for members. </p><p>Since its launch ICEV has achieved considerable progress including growing its pension assets to $3tn, influencing advisers to change their advice to their company clients and, ultimately, encouraging companies to give all their shareholders an equal say in how they are run. In 2024, we will continue to engage with early-stage companies, using the findings of our recent research paper <em>Undermining the Shareholder Voice</em> to help make our case for equal voting rights.</p><h3>Broaden your knowledge of corporate governance and Railpen’s work in this area</h3><p>Find out more about Railpen’s engagement and voting priorities, including how it takes voting decisions at companies’ AGMs that are in the best interest of members, in the 2024 Global <a href="https://cdn-suk-railpencom-live-001.azureedge.net/media/media/3dsbs2tm/voting-policy-2024.pdf" target="_blank" data-sf-ec-immutable="">2024 Global Voting Policy</a> Policy. Our priorities reflect what we consider to be good corporate governance and how well companies are managed. </p><p>Discover more about the work of the ICEV with the:</p><ul><li>ICEV Report<a href="https://cdn-suk-railpencom-live-001.azureedge.net/media/media/55reei4u/icev-report-2023-undermining-the-shareholder-voice.pdf" target="_blank" data-sf-ec-immutable="">ICEV Report 2023</a> 2023 </li><li>ICEV Executive <a href="https://cdn-suk-railpencom-live-001.azureedge.net/media/media/ciblcg4q/icev-2023-executive-summary-undermining-the-shareholder-voice.pdf" target="_blank" data-sf-ec-immutable="">ICEV Executive Summary</a>, and the </li><li>ICEV Investor <a href="https://cdn-suk-railpencom-live-001.azureedge.net/media/media/xtupqlv3/icev-2023-investor-statement-undermining-the-shareholder-voice.pdf" target="_blank" data-sf-ec-immutable="">ICEV Investor Statement</a></li></ul>

<p>If you’re thinking about ways to cut down on your costs, you’re not alone. Around 3 in 4 adults feel ‘very or somewhat worried’ about the rising costs of living. As a result, many of us are now spending less on non-essentials, according to research from the Office of National Statistics (ONS). </p><p>While contributing to your pension may not seem like a necessity now, it could make all the difference to your life after work. </p><p>Here’s how a freeze on your pension contributions today, could melt your retirement plans tomorrow.</p><p>&nbsp;</p><h4>You could lose the valuable benefits of your RPS pension</h4><p>Your membership in the Railways Pension Scheme (RPS) comes with many <a href="https://member.railwayspensions.co.uk/defined-benefit-members/im-still-working/membership-benefits" data-sf-ec-immutable="">fantastic benefits</a>. Freezing your contributions may put some, or all of these benefits at risk.&nbsp;</p><ul><li><h3>You’re not saving alone</h3><p>While you pay into your RPS pension, your employer pays in too. That means more money into your pension savings, at no cost to you. </p><p>As a defined benefit (DB) member, your employer will pay in at least 60% of the value of your retirement benefits, which is usually 1.5 times your contribution. DB members can <a href="https://member.railwayspensions.co.uk/defined-benefit-members/im-still-working/my-payments" data-sf-ec-immutable="">learn about their payments here.</a></p><p>Industry-Wide Defined Contribution (IWDC) members can <a href="https://member.railwayspensions.co.uk/iwdc-members/Im-still-working/my-payments" data-sf-ec-immutable="">learn more about their payments here</a>.</p><p>If you stop paying into your pension, your employer will normally stop paying in too. Even if you freeze or reduce your contributions for a year, you could miss out on a large sum of pension money when you retire.</p></li><li><h3>Your contributions are tax-free</h3><p>The government supports your pension saving journey with <a href="https://member.railwayspensions.co.uk/pension-essentials/pension-tax-limits" data-sf-ec-immutable="">tax relief on your pension contributions</a>. The money you pay into your pension is taken from your salary, before you pay tax on it. So, the money which would have been taken as tax goes towards your pension savings instead.</p><p>For example, if you pay basic-rate tax (20%), and you want to save £100 into your pension, because of the way tax relief works it will only cost you £80. The other £20 comes from tax relief. </p><p>You also benefit from tax relief on any Additional Voluntary Contributions (AVCs) you make. AVCs are extra contributions you pay into the Scheme, on top of the contributions you and your employer pay in.</p><p>The main AVC arrangement for defined benefit (DB) members is called BRASS. <a href="https://member.railwayspensions.co.uk/defined-benefit-members/saving-more-BRASS-AVC-Extra/saving-more-with-BRASS" data-sf-ec-immutable="">You can find more information about BRASS here</a>. </p><p>If you’re an IWDC member, you can save more by paying more contributions. <a href="https://member.railwayspensions.co.uk/iwdc-members/Im-still-working/saving-more" data-sf-ec-immutable="">IWDC members can learn how to save more here</a>.</p></li><li><h3>Your pension is prepared for the unexpected</h3></li></ul><p style="margin-left: 30px">Life is full of twists and turns, and your RPS pension is here to support you through those times, too. If you die before you take your RPS pension, your loved ones might get a <a href="https://member.railwayspensions.co.uk/knowledge-hub/help-and-support/reporting-a-death" data-sf-ec-immutable="">tax-free lump sum death benefit</a>. Remember, if you stop contributing to the Scheme while you’re still working, you will lose the Scheme’s valuable death in service cover. <br></p><p style="margin-left: 30px">As the saying goes, you never know what’s around the corner. If you need to stop working completely due to ill-health, you may be able to start taking your RPS pension and cash lump sum straight away, even before your Normal Retirement Age (NRA). This is known as an incapacity pension. <br></p><p style="margin-left: 30px">If you become seriously ill and your life expectancy is less than 12 months, you may be able to take your RPS pension benefits a one-off lump sum payment. This is called a serious ill health lump sum. <br></p><p style="margin-left: 30px">DB members can <a href="https://member.railwayspensions.co.uk/defined-benefit-members/im-still-working/changes-to-circumstances" data-sf-ec-immutable="">learn more about incapacity benefits here</a>.</p><p style="margin-left: 30px">IWDC members can <a href="https://member.railwayspensions.co.uk/iwdc-members/Im-still-working/changes-to-circumstances" data-sf-ec-immutable="">find out more about incapacity benefits here</a>.</p><p>&nbsp;</p><h4>The less you pay in now, the less you’ll have later</h4><p>You pay into your pension while you’re working, to give you a retirement income when you’re no longer working. It may seem obvious, but the less you pay in now, the less money you’ll have when you retire. </p><p>It’s great we’re living longer, but have you thought about what it might mean for your pension? According to the Office for National Statistics (ONS), the average life expectancy for a male born in the UK is 88 years, with a 1 in 4 chance of living to age 97.* </p><p>With potentially more years ahead of us, our pension savings may need to support a longer retirement. If you freeze your pension contributions now, it may mean you’ll need to continue working longer than you had hoped to, to pay for your life after work. </p><p>If you were to stop paying into the Scheme for a few years but started paying in again at a later date, you may lose out on the Scheme membership you would have built up in that time, if you had been paying in continuously. Remember, you will not be able to buy additional years’ Scheme membership, which might mean you need to keep working longer to build up your membership again.</p><h4>&nbsp;</h4><h4>Your pension is an investment for your future</h4><p>Are you familiar with the pension term, ‘compounding’? It’s how your pension savings grow as they’re invested. </p><p>The money you and your employer pay into your pension, plus any tax relief is invested by the Scheme’s administrator, Railpen. Compounding is when your pension money grows as it’s invested, and then the growth on investments also grows over time. </p><p>A freeze on your contributions, even for a short time, could disturb the compounding that happens when you regularly pay into your pension. Plus, it could be hard to get back into the habit of paying into your pension. So, it’s a good idea to keep saving, if you can. </p><p>Compounding only directly impacts members of the Industry-Wide Defined Contribution (IWDC) section, and members who pay in Additional Voluntary Contributions (AVCs), such as BRASS.</p><h4>&nbsp;</h4><h4>Your State Pension might not be enough</h4><p>You’ve probably thought about what you’d like to do in retirement. Maybe some work on the house, take up a new hobby, or do some travelling. But all of those things come at a cost, and your State Pension alone might not be enough to cover them. &nbsp;</p><p>The full new single-tier State Pension for 2023/24 is currently £203.85 per week. That’s around £10,000 a year. While the State Pension is set to increase, remember that life’s other costs, such as bills and holidays are likely to increase, too. </p><p>Plus, you may have to wait until your late 60s to claim your State Pension. The State Pension age (SPA) is currently 66 for both men and women, and will increase to age 67 in 2026-2028.</p><p>While the State Pension is a great place to start with saving for retirement, you might need to top it up with your RPS pension savings to enjoy the things you want to do in later life. </p><p>For a personalised estimate of how much you might need when you retire, try the <a href="https://member.railwayspensions.co.uk/knowledge-hub/help-and-support/retirement-budgeting-calculator" data-sf-ec-immutable="">Retirement Budgeting Calculator in your myRPS account.</a> The calculator lets you add your individual costs, to work out how much money you might need to pay for the retirement lifestyle you want. </p><h4>&nbsp;</h4><h4>Where to go for support</h4><p>It’s important you think long and hard before freezing your pension contributions or making any changes to your pension savings. </p><p>If you pay in Additional Voluntary Contributions (AVCs), and you have no other option but to cut back on your spending, you could reduce the amount you pay in. Or, you could take a break from paying into AVCs for a short time. But it’s important that you keep paying into your main Scheme benefits, if you can. </p><p>To weigh up your options, you could speak to your employer, or talk to a financial adviser. You can find a <a href="https://member.railwayspensions.co.uk/pension-essentials/guidance-advice" data-sf-ec-immutable="">list of specialist sites and professional advisers here</a>. </p><p>If you’re looking for tips to manage your money, try the <a href="https://member.railwayspensions.co.uk/login" data-sf-ec-immutable="">MoneyFit tool in your myRPS account</a>. MoneyFit gives you a personal action plan with advice to help you save into your pension in the future.&nbsp; &nbsp;</p><p>Paying into your RPS pension is one of the most secure ways to plan for your future. If you think about your long term goals now, your future self will thank you later. </p><p>*<em>Figures are correct as of March 2024, but may change. To check the latest figures, visit </em><a href="http://www.ons.gov.uk/" data-sf-ec-immutable=""><em></em></a><em><a href="http://www.ons.gov.uk" target="_blank" data-sf-ec-immutable="">www.ons.gov.uk<em>.</em></a>&nbsp;</em></p>

<p>Today, women retire with average pension savings of £69,000 compared to £205,000[1] for men. This gap of&nbsp; £136,000[2] worth of pension savings means that a woman would have to work an extra 19 years to be able to bridge it and to afford the same level of retirement savings as a man.&nbsp; The gender pension gap is twice the size of the gender pay gap, and affects a significant proportion of female savers in the UK.&nbsp;<br></p><p>In this blog, we look at the reasons why the gender pension gap exists and what female savers in the Scheme can do to improve their retirement outcomes.&nbsp;<br></p><h4>What is the gender pension gap?</h4><p>The gender pension gap is the difference in pension savings wealth between men and women at retirement age[3]. As it stands, the difference that exists is substantial, with the latest statistics estimating a gap of up to £136,000 or 19 years, as shown above. &nbsp;<br><br></p><h4>Why does the gender pension gap exist?</h4><p>There are multiple causes of the gender pension gap. We look at the main ones below. <br></p><h3><strong>Life events and subsequent career breaks</strong><br></h3><p>The career breaks women take to care for their families’ amount to £39,000 in lost pension savings, according to NOW: Pensions’ 2024 gender pensions gap report.&nbsp; This is because, in many cases, females pause their careers or to cut down on work in order to care for their children (this is also known as the ‘motherhood penalty’). <br></p><p>The 2023 Women and Retirement report, produced by Scottish Widows, shows that 44% of UK mothers spend all 5 working days looking after their children (compared to just 16% of fathers). The alternatives many women think about after having children are having a longer career break, doing part-time work, freelancing or taking on multiple jobs. However, this means that many women might not be earning enough to pay into a private or workplace pension. People in the UK need to earn at least £10,000 a year in order to meet the criteria for pension<a href="https://www.moneyhelper.org.uk/en/pensions-and-retirement/auto-enrolment/automatic-enrolment-an-introduction" target="_blank" data-sf-ec-immutable=""> </a> <a href="https://www.moneyhelper.org.uk/en/pensions-and-retirement/auto-enrolment/automatic-enrolment-an-introduction" data-sf-ec-immutable="" data-sf-marked="" target="_blank">auto enrolment</a>. <br></p><p>The 2024 gender pensions gap report also shows that women are far more likely to take time out of work to care for an elderly or sick family member.<br></p><p>What is more, the fact that they’ll have worked less years throughout their life could also <a href="https://www.gov.uk/new-state-pension" target="_blank" data-sf-ec-immutable="" data-sf-marked="">disqualify them from receiving a State Pension</a> them from receiving a State Pension. To get any State Pension, people in the UK are required to have worked for 10 qualifying years. To get the full State Pension, 35 qualifying years of work are required. The 2023 Women and Retirement report also says that often women take around 10-year career gap to shoulder caring responsibilities which poses a real risk of not qualifying for any state pension further down the line. You can check your State <a href="https://www.gov.uk/check-state-pension" target="_blank" data-sf-ec-immutable="">check your State Pension forecast</a> forecast on the government’s website. <br></p><blockquote><h3><strong>The gender pay gap</strong><strong></strong><br></h3></blockquote><p>The gender pay gap – the difference between the earnings of men and women – is deemed one of the major drivers of the pension gap. Women have been earning and still to this day earn on average less than men, although 2023 figures[4] show a slow decline over time. In April 2023, the gender pay gap stood at 7.7% according to the ONS.<br></p><p>The significant gap in income means women have less capacity to meet increasing financial demands. The 2023 Women and Retirement report, by Scottish Widows suggests that on average, women are paid 15% less per hour across all jobs in the UK. The report also highlights that only 59% of women aged 22-65 are saving into a private pension, compared to 71% of men, while 62% of men are also expecting to be able to draw from other long-term savings sources in retirement, compared to just 50% of women.</p><p>It’s not all doom and gloom for females, though. The 2024 pension gap report shows a positive tendency of more women undertaking higher education, and therefore entering the workforce with higher salaries. If the trend continues, the gender pay gap is likely to reduce further over the coming years, as more young women go on higher education. This could mean better retirement outcomes too. </p><blockquote><h3><strong>The current auto enrolment criteria</strong><strong></strong><br></h3></blockquote><p>Women are more than twice as likely as men to miss out on being automatically put into a workplace pension, according to 2023 analysis published by the Trades Union Congress (TUC). Around 100,000 more young female workers than young male workers are currently locked out of auto enrolment due to their age and earnings.<br></p><p>As it currently stands, to qualify for auto enrolment, a worker must be 22-years-old and earn at least £10,000 a year.<br></p><p>There are active proposals to reduce the qualifying auto enrolment age to 18. If the age and earning restrictions were removed entirely, around 885,000 young female workers would become eligible for auto enrolment.</p><blockquote><h3><strong>Lack of awareness in women of pension entitlement upon divorce</strong><strong></strong><br></h3></blockquote><p>Recent research[5] shows that 60% of divorced women in the UK didn’t discuss pension assets during their divorce, while over a quarter thought they are not part of the proceedings. This has cost female divorcees an average of up to £77,000 in pension money. The research has found the reason for this is women’s lack of understanding of their entitlement at the time of divorce. <br></p><p>The figures are worrying, considering the retirement income can be one of the most valuable assets people possess after the family home. Moreover, many women won't benefit from the sacrifices to their careers and earnings they make for their families if pension wealth is not shared at the time of divorce.</p><p>&nbsp;</p><h4>What to do make the most of your pension with the Scheme<br></h4><p>While the gender pension gap will continue to exist for quite some time, there are some simple steps you can take to ensure you’re making the most of saving for retirement with the RPS. </p><blockquote><h3><strong>Keep track of your pension</strong></h3><p><strong></strong>Do you know how much you’ve saved into your pension so far? If you don’t, find out now! Request an estimate of your pension benefits (to do this you’d need to <a href="https://member.railwayspensions.co.uk/login" data-sf-ec-immutable="" data-sf-marked="">log into your myRPS account</a>), then use the tools on our website to see whether you’re on track to have the retirement you hope for.</p></blockquote><ul><li>DB members, use <a href="https://member.railwayspensions.co.uk/knowledge-hub/help-and-support/retirement-budgeting-calculator" data-sf-ec-immutable="" data-sf-marked="">the Retirement Budgeting Calculator</a>&nbsp;and the Pension Planner to see how much you’ll need when you retire and how changing the age at which you wish to retire and some other factors might impact your retirement income</li><li>IWDC members, you can also use the Retirement Budgeting Calculator on our website but you should also log into your myRPS account and check out the Retirement Modeller – a handy tool to help give you an idea of what your pot might be worth when you come to take it<br></li></ul><blockquote><h3><strong>Think twice before stopping your pension contributions</strong><strong></strong><br></h3></blockquote><p>If you’re looking for ways to give your bank account a bit of a breather, a temporary pause on your pension payments may look like a possible solution. However, it’s important you think long and hard before you make the decision as you’d miss out on some valuable benefits. <br></p><p>Here’s why stopping your pension contributions might not be a good idea even at times of financial strain:&nbsp; <br></p><ul><li>You’d lose out on contributions from your employer (for DB members this is at least 60% of the money you put in normally).</li><li>You’d miss out on tax relief from the government.</li><li>You’d interrupt the compounding effect that happens when you have money invested for a long period of time. &nbsp;</li><li>You may never start saving again once you’ve had a flavour of having some extra money in your pocket each month. </li></ul><blockquote><h3><strong>Set some goals and be proactive</strong><strong></strong><br></h3></blockquote><p>It may help to set some saving goals to help get where you want to be financially when you retire. The Scheme offers pension top up arrangements called <a href="https://member.railwayspensions.co.uk/defined-benefit-members/saving-more-BRASS-AVC-Extra/saving-more-with-BRASS" data-sf-ec-immutable="">BRASS</a> (for DB members) and <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> (for IWDC members and top contributors of BRASS) for members who wish to pay extra towards their pension. It’s a fantastic way to give your pension a bit of a boost, as you get tax relief on what you put in. You can save as little as £2 per week if you wish, and you don’t need to save a set amount every month. Check out our&nbsp;<a href="https://www.youtube.com/shorts/y3YlPE8G5Z8" target="_blank" data-sf-ec-immutable="">recent video</a>&nbsp;on saving more with BRASS. <br></p><p>If you happen to receive a bonus or a pay increase, for example, think about paying more into your pension if you can. <br></p><p>For ideas to help you manage your money, you can use the MoneyFit tool in your <a href="https://member.railwayspensions.co.uk/login" data-sf-ec-immutable="">your myRPS account</a> account. It gives you a personal action plan with helpful tips and advice, to help you free up more money and save more into your pension. <br></p><blockquote><h3><strong>Check in with your pension regularly</strong><strong></strong><br></h3></blockquote><p>In the same way you check your bank or social media accounts, make time for checking in with your pension on a regular basis. It helps to know where you’re at with saving for retirement as it means you are more likely to incorporate retirement planning into your thought process before making a financial decision. <br></p><p>Your pension will provide for you when you stop work one day, but you need to take care of it now and help it grow so you have enough to enjoy a decent life in retirement.&nbsp; </p><p>&nbsp;</p><p>&nbsp;</p><p><strong>Works cited:</strong></p><div><div id="ftn1"><p>[1] NOW: Pensions’ 2024 gender pensions gap report <a href="https://www.nowpensions.com/app/uploads/2024/02/gender-pensions-gap-report-24.pdf" data-sf-ec-immutable="">https://www.nowpensions.com/app/uploads/2024/02/gender-pensions-gap-report-24.pdf</a> </p></div><div id="ftn2"><p>[2] NOW: Pensions’ 2024 gender pensions gap report <a href="https://www.nowpensions.com/app/uploads/2024/02/gender-pensions-gap-report-24.pdf" data-sf-ec-immutable="">https://www.nowpensions.com/app/uploads/2024/02/gender-pensions-gap-report-24.pdf</a> </p></div><div id="ftn3"><p>[3] There’s information on the different types of retirement on your member website <a href="https://member.railwayspensions.co.uk/defined-benefit-members/Im-planning-to-take-my-pension/when-to-retire" data-sf-ec-immutable="">https://member.railwayspensions.co.uk/defined-benefit-members/Im-planning-to-take-my-pension/when-to-retire</a> </p></div><div id="ftn4"><p>[4] ONS:&nbsp;Gender pay gap in the UK: 2023&nbsp;<a href="https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/earningsandworkinghours/bulletins/genderpaygapintheuk/2023" data-sf-ec-immutable="">https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/earningsandworkinghours/bulletins/genderpaygapintheuk/2023</a> </p></div><div id="ftn5"><p>[5] Research conducted by law firm Stowe Family Law&nbsp;</p></div></div>

<p>The 2023-24 tax year ends on 5 April 2024.</p> <p>Here’s some of the reasons you might consider saving more before the tax year is up. And a few top tips on how you can do it, including making <a href="https://member.railwayspensions.co.uk/pension-essentials/saving-more">Additional Voluntary Contributions (AVCs).</a></p> <p>We can’t help decide what’s best for you, but the below information should make sure you have the information you need to make a decision.</p> <h2>Why you might want to save more:</h2> <h4>Use up your Annual Allowance (AA)</h4> <p>The <a href="https://member.railwayspensions.co.uk/pension-essentials/pension-tax-limits">Annual Allowance (AA)</a> is the limit on your pension savings that benefit from tax relief each year. It means the most you can save tax-free towards all your pension arrangements in a single tax year is the lower of either 100% of your earnings, or £60,000. Unless you’re affected by the <a href="https://member.railwayspensions.co.uk/pension-essentials/pension-tax-limits">Tapered Annual Allowance (TAA)</a>, or the <a href="https://member.railwayspensions.co.uk/pension-essentials/pension-tax-limits">Money Purchase Annual Allowance (MPAA).</a></p> <p>When the new tax year starts, your Annual Allowance will renew. So, if you can afford to, you might think about paying more into your Railways Pension Scheme (RPS) pension now, to use up your remaining Annual Allowance before the new tax year.</p> <p>If you’ve used your Annual Allowance for this tax year, you can carry forward any unused Annual Allowance from the previous 3 years. This may mean you can pay more into your pension, without having to pay an extra tax charge. </p> <h4>To make the most of tax relief</h4> <p>A fantastic thing about saving with your RPS pension is that its tax efficient, because the money you pay in is taken from your salary before tax is deducted. This means you pay less tax on your salary.</p> <p>For example, if you’re a basic-rate tax payer (who pays 20% income tax) and want to put £100 into your pension, it would actually only cost you £80. That’s because the other £20 comes from tax relief.</p> <p>If you’re a higher-rate tax payer you’ll get 40% tax relief, and additional-rate tax payers get 45%. But there are limits on the amount of pension saving that benefit from tax relief each year. <a href="https://member.railwayspensions.co.uk/pension-essentials/pension-tax-limits">You can learn about the limits here</a>. </p> <h4>To make use of any spare cash</h4> <p>If you’ve received a bonus, a monetary gift or if you have some cash to spare, why not consider doing a good thing for your future by paying it into your pension? </p> <h4>Hold onto your tax-free Personal Allowance</h4> <p>Your Personal Allowance is the amount of income you don’t have to pay tax on. The standard Personal Allowance for the 2023-24 tax year is £12,570.</p> <p>Did you know, your Personal Allowance reduces by £1 for every £2 that your income is above £100,000. And, if you have an income of £125,140 or above, you do not get a Personal Allowance. You can <a href="https://www.gov.uk/income-tax-rates" target="_blank">learn more about this at Gov.uk</a>.&nbsp;</p> <p>It’s handy to know the money you pay into your pension doesn’t count as an income. So, you might think about paying more into your pension to keep your Personal Allowance, and save more for your future. </p> <h4>Keep your Child Benefit if you’re a working parent </h4> <p>Child Benefit can help you with the costs of your children. And, as the cost-of-living increases, every penny helps to meet the demands of busy family life.&nbsp;</p> <p>If you or your partner earn over £50,000 a year, you may have to pay the <a href="https://www.gov.uk/child-benefit-tax-charge" target="_blank">High Income Child Benefit Charge</a>. And if you earn over £60,000, due to the tax charge, it’s likely you’ll end up with no extra money from Child Benefit. To see if this applies to you, try the government’s <a href="https://www.gov.uk/child-benefit-tax-calculator" target="_blank">Child Benefit tax calculator</a>.</p> <p>Remember, the money you pay into your pension doesn’t count as an income. So to get your Child Benefit back, you might think about paying more money into your pension, and save more for your loved ones’ future at the same time.</p> <p>Plus, you’ll automatically get National Insurance (NI) credits if you claim Child Benefit and your child is under 12. The amount of State Pension you’ll get is based on the amount of qualifying years on your NI record, so claiming your Child Benefit could help build up your qualifying years.</p> <h2>How you can save more:</h2> <p>Saving more into your pension while you’re working could mean you have more money when you retire. Here’s a few ideas for how you can do it…</p> <h4>Boost your savings with Additional Voluntary Contributions (AVCs)</h4> <p>You can <a href="https://member.railwayspensions.co.uk/pension-essentials/saving-more">save more into your RPS pension by making AVCs</a>. These extra payments are made on top of your normal pension contributions to help boost your savings even further. And, making AVCs could help you use up your Annual Allowance. You’ll get tax relief on your AVCs, just like you do with your regular pension contributions.</p> <p>You can make regular AVCs, or one-off payments if you prefer. The great thing about AVCs is that you can decide how much you want to pay in, starting from as little as £2 a week or £10 a month. And, you can stop paying AVCs at any time.</p> <p>If you’re a defined benefit (DB) member the main AVC arrangement is BRASS, and you can <a href="https://member.railwayspensions.co.uk/iwdc-members/Im-still-working/saving-more">learn how it works here</a>. If you're an&nbsp;Industry-Wide Defined Contribution (IWDC) member,&nbsp;<strong></strong><a href="https://member.railwayspensions.co.uk/iwdc-members/Im-still-working/saving-more">you can learn how to save more here</a>.</p> <h4>Check your State Pension and consider voluntary contributions </h4> <p>The full new State Pension for 2023-24 is currently £203.85 per week, that’s around £10,600 a year. But, if you have gaps in your NI record, it might mean you’re unable to get your full State Pension entitlement. You can <a href="https://www.gov.uk/check-national-insurance-record" target="_blank">check your NI record here</a>.</p> <p>If you have a shortfall in NI qualifying years, you may be able to build up your NI record by paying voluntary contributions, if you’re eligible.</p> <p>There’s no time like the present to check if you’re eligible to pay voluntary contributions, as the deadline is 5 April each year. You can normally buy up to 6 years. But, until 5 April 2025, you may be able to buy any missing NI years from 2006 to 2016. You can learn more about <a href="https://www.gov.uk/new-state-pension/your-national-insurance-record-and-your-state-pension" target="_blank">gaps in your NI record, and making voluntary contributions here</a>. </p> <h4>Create some positive pension habits</h4> <p>There are other ways to maximise your pension savings, even if you can’t afford to pay more in at the moment. You could make some positive pension habits, such as:</p> <ul> <li>Making a regular note in your diary to <a href="https://member.railwayspensions.co.uk/login">log into your myRPS account</a> and manage your pension</li> <li>Requesting a free estimate of your pension benefits to see what you might expect in future</li> <li>Reviewing your investments, if you have them</li> <li>Taking <a href="https://member.railwayspensions.co.uk/pension-essentials/guidance-advice">financial guidance or advice</a> where needed</li> </ul> <p>For ideas to help you manage your money, you can use the MoneyFit tool in your myRPS account. It gives you a personal action plan with helpful tips and advice, to help you free up more money and save more into your pension. It’s completely anonymous, and free of charge. <a href="https://member.railwayspensions.co.uk/login">Log in to try MoneyFit today.</a> </p>

<p>Figures released by the Pensions Management Institute (PMI) show that over £26 million was lost to pension scams between 2020 and 2022. During the same time, 1,595 pension scams were reported in England and Wales. The damage equates to an average loss of £16,500 per pensioner. That’s the equivalent of a full year’s living expenses for a pensioner with a moderate standard of living, in line with the Retirement Living <a href="https://www.retirementlivingstandards.org.uk/" target="_blank" data-sf-ec-immutable="">Retirement Living Standards (RLS)</a>Standards (RLS). </p><h4><br>Robbing savers of their security and future<br></h4><p>The Pensions and Lifetime Savings Association (PLSA) has released their updated <a href="https://www.retirementlivingstandards.org.uk/" target="_blank" data-sf-ec-immutable="">RLS</a> this month. The RLS are a benchmark that shows what life after work could look like at 3 different levels – minimum, moderate and comfortable. According to the RLS, a single person needs £14,400 to be able to afford a ‘minimum’ standard of living. This means that single retirees who were living at a minimum standard and have been scammed during the pandemic will have been robbed off the money they need to live on for a whole year. This would have undoubtedly had a detrimental impact on people’s lives depriving them from the future they’ve spent a lifetime investing in.<br></p><h4><br>Scams take advantage of world events<br></h4><p>The Covid-19 pandemic grouped with the cost of living crisis seem to have created the perfect ecosystem for scammers to thrive in and become even more dangerous. <br></p><p>In the midst of the pandemic, in 2021, reports of pension scams increased by 45%, according to the Money &amp; Pensions Service (MAPS). Evidently, fraudsters tried - and on many occasions succeeded – in taking advantage of the widespread anxiety caused by the pandemic.<br></p><p>The cost of living crisis could also be one of the reasons for the increasing prevalence of pension scams. Often, fraudsters prey on people’s vulnerability and anxiety for meeting financial demands. They take advantage of the urgency and desperation some savers experience. <br></p><p>They are ruthless and will use every opportunity they get to trick you out of your pension. Staying vigilant and wise to the increasingly sophisticated methods used by scammers even at times of extreme financial constraints is exceptionally important. <br></p><p>Pension scams are extremely dangerous, however since the cost of living crisis struck, other types of scams have occurred too. For example, those offering ‘help’ with:<br></p><ul><li>fuel bills</li><li>devices to reduce power and fuel consumption</li><li>access to government grants and non-existent loans<br></li></ul><p>So keep your guard up at all times, no matter which aspect of life you’re being approached about.<br></p><h4><br>How to protect yourself<br></h4><p>Put your critical thinking cap on and question and check every offer no matter how big or small it is. </p><p>Recognising a scam is half the battle so here are a few tips on what to do if you’re being approached:<br></p><ul><li>Reject out-of-the-blue emails, calls and contact. Callers may claim they’re from government-backed bodies to trick you into giving them information. </li><li>Check who you’re dealing with. If it doesn’t feel right, it probably isn’t and it only takes a few minutes to check. It could cost you your savings if you don’t.</li><li>Avoid ‘investment deals’, ‘free pension reviews’ and early access to your pension before age 55.</li><li>Don’t fall for professional-looking websites or brochures.</li><li>Never feel rushed into making a decision. Take your time to check things over, even if you miss out on a ‘great’ deal.</li><li>Fraudsters are only getting smarter so you must stay vigilant.<br><br></li></ul><h4>Here’s what to do if you think you’re being targeted <br></h4><ul><li>Learn what <a href="https://www.fca.org.uk/consumers/pension-scams" data-sf-ec-immutable="" data-sf-marked="" target="_blank">red flags to look out for</a> and beware at all times! We’ve provided a handy<a href="/pension-essentials/pension-scams"> list of 10 ways to protect yourself</a> - check it out.&nbsp;</li><li>If you’re looking to turn to an independent financial adviser (IFA), make sure the financial adviser you choose is on the FCA <a href="https://register.fca.org.uk/s/" target="_blank" data-sf-ec-immutable="">FCA approved register</a> register. To find a list of IFAs in your local area visit <a href="https://www.unbiased.co.uk/" target="_blank" data-sf-ec-immutable="">Unbiased</a>.</li><li>Visit <a href="https://www.moneyhelper.org.uk/en/money-troubles/scams/a-beginners-guide-to-scams" target="_blank" data-sf-ec-immutable="">MoneyHelper</a> for some useful information on the different types of scams and how to protect yourself</li><li>Report fraud any time of day and night on the <a href="https://reporting.actionfraud.police.uk/login" data-sf-ec-immutable="">Action Fraud website</a> or by calling 0300 123 2040 Monday to Friday 8am - 8pm. If you are calling from abroad call +44 300 123 2040.<br></li></ul><h4><br>A lot of crime goes unreported – do your bit<br></h4><p>The Financial Conduct Authority (FCA) estimates that less than 1 in 5 instances of scams are reported.<br></p><p>One of the reasons for this is the trauma of lost savings and the shame victims feel. People feel embarrassed if they are being tricked so hearing the stories of others can act as a catalyst for more people to come forward and share their story. <br></p><p>If you’ve been scammed and want to share your story to help other victims or to protect those that are yet to be targeted, turn to <a href="https://www.actionfraud.police.uk/" target="_blank" data-sf-ec-immutable="">Action Fraud</a> Fraud. The Pension Regulator has said that the delay in realising people have been scammed makes scamming attractive to criminals. This is why it is important we all do what we can to prevent scams. <br></p>

<p>There were more than 30 news updates posted on the site this year, covering everything from tax and investments, to financial wellbeing and retirement planning. Thousands of you read them, and we’ve listed the 5 most popular below. </p><p>You can read all of these stories and more on the news pages - <a href="/knowledge-hub/news-and-views/news-updates">railwayspensions.co.uk/knowledge-hub/news-and-views/news-updates</a> - and we’ll be keeping you updated throughout the next year too!</p><p>&nbsp;</p><h4>1.&nbsp;Understanding your death benefits<strong></strong></h4><p>Back in January, we ran a news story explaining what you can do to help make sure your loved ones can benefit from your pension when you die. Namely…</p><ol><li><strong>Making your nominations</strong><strong></strong></li><li><strong>Making sure your family know who to contact about your pension when you die </strong><strong></strong></li></ol><p>This coincided with the launch of a new webpage outlining how to report a member’s death and explaining what happens once the Scheme has been notified that a member has died. You can read more using the links below: </p><p><a href="https://member.railwayspensions.co.uk/knowledge-hub/news-and-views/news-updates/2023/01/18/understanding-your-death-benefits" data-sf-ec-immutable="">News story on understanding your death benefits</a> </p><p><a href="https://member.railwayspensions.co.uk/knowledge-hub/help-and-support/reporting-a-death" data-sf-ec-immutable="">Webpage for reporting a death</a> </p><p>&nbsp;</p><h4><strong>2. Now’s the time to check your details </strong><strong></strong></h4><p>This article was a look ahead to the launch of pensions dashboards, with a request to please make sure your details are up to date. </p><p>While the Pensions Dashboards project has been delayed by the Government, it is still important for you to make sure your details are correct, otherwise your information might not match correctly with the dashboards once they’re in place. </p><p>You can find out more about the dashboards and what information they will use on the original news story – <a href="https://member.railwayspensions.co.uk/knowledge-hub/news-and-views/news-updates/2023/04/05/nows-the-time-to-check-your-details" data-sf-ec-immutable="">now’s the time to check your details</a>&nbsp; </p><p><strong>&nbsp;</strong></p><h4><strong>3. How the Spring Budget affects you and your pension</strong></h4><p>Chancellor of the Exchequer Jeremy Hunt presented his Spring Budget on March 15 2023.&nbsp; It included several changes affecting pensions, particularly that:&nbsp; </p><ul><li>The Lifetime Allowance (LTA) would be abolished</li><li>The Annual Allowance would increase from £40,000 to £60,000</li><li>The threshold for those affected by the Tapered Annual Allowance would increase from £240,000 to £260,000</li><li>The Money Purchase Annual Allowance would increase from £4,000 to £10,000</li><li>The most you would be able to take as a tax-free lump sum would be £268,275 (unless you have Lifetime Allowance protections)</li></ul><p>There have been many changes in the Government since then, but this story remains the most read news item on the site this year. </p><p><a href="https://member.railwayspensions.co.uk/knowledge-hub/news-and-views/news-updates/2023/03/15/spring-budget-announcements" data-sf-ec-immutable="">Remind yourself of what was said in the Spring Budget announcements</a> article.&nbsp; But please bear in mind that details around the LTA are still being finalised.</p><p>&nbsp;</p><h4>4. Free will writing initiative continues in 2023</h4><p>Death features in our countdown for a second time, but this one was all about how to have a will drafted or updated free of charge. This charity initiative usually runs twice a year and is targeted primarily at those aged 55 and over. </p><p>If you want to find out more, check out the story from March or when the initiative ran again in October and look out for further updates in 2024.</p><p><a href="https://member.railwayspensions.co.uk/knowledge-hub/news-and-views/news-updates/2023/03/06/free-will-writing-initiative-continues-in-2023" data-sf-ec-immutable="">March news story</a></p><p><a href="https://member.railwayspensions.co.uk/knowledge-hub/news-and-views/news-updates/2023/10/06/free-wills-month" data-sf-ec-immutable="">October news story</a> </p><p>It’s important to remember that&nbsp;your will does not cover any death benefits payable from your RPS pension. You should separately update your nominations in your&nbsp;<a href="https://member.railwayspensions.co.uk/login" data-sf-ec-immutable="">myRPS account</a>&nbsp;to say where you’d like any lump sum death benefit payments from your pension to go if you die before you claim them. This cannot be covered in your will, as your railways pension is separate to the rest of your estate.</p><p>&nbsp;</p><h4>5. Changes to your website... coming soon!</h4><p>The fifth most popular news story this year offered a preview of the changes being made to the RPS member website, including:</p><ul><li><span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit; font-size: inherit">a bigger menu to let you see at a glance, what’s available and where you need to go</span></li><li>a full review of all of the information on the site to make it clearer and more relevant for you</li><li>links at the bottom of each of the pages to direct you to other relevant information you might want to check out</li><li>separate sections for members of the defined benefit (DB) Sections of the Scheme and for the Industry-Wide Defined Contribution (IWDC) Section</li><li>quick links on the homepage links making it easier for you to find the most popular pages </li></ul><p>All of these changes are now in place. You can read more about them, and why they were done in:</p><ul><li><a href="https://member.railwayspensions.co.uk/knowledge-hub/news-and-views/news-updates/2023/07/03/changes-to-your-website-coming-soon!" data-sf-ec-immutable="" data-sf-marked="">the original news story, changes to your website coming soon</a>! </li><li><a href="https://member.railwayspensions.co.uk/knowledge-hub/news-and-views/news-updates/2023/07/25/introducing-your-new-look-website" data-sf-ec-immutable="">the follow up article, introducing your new look website</a> </li></ul><p>We’d also still love to hear what you think about the new look site, via the short survey at - <a href="https://www.surveymonkey.co.uk/r/RPS-web-feedback" data-sf-ec-immutable="">surveymonkey.co.uk/r/RPS-web-feedback</a> </p><p>&nbsp;</p>

<p>You’re a preserved member (sometimes known as a deferred member) if:</p><ul><li>You HAVE stopped paying into the Railways Pension Scheme (RPS) </li></ul><p>But</p><ul><li>You HAVE NOT yet started taking your pension or transferred out. </li></ul><p>This means that even though you are no longer putting money into your pension, the benefits you have built up so far, remain in the Scheme until you are ready to take them. That’s why it’s so important that you understand your options and know what being a preserved member means for you. </p><p>Look below for a summary of what you really need to know as a preserved DB or IWDC member in the RPS. </p><p>If you’re not sure whether you’re in the DB or IWDC Sections of the Scheme you can <a href="https://member.railwayspensions.co.uk/login" data-sf-ec-immutable="">log in to your myRPS account</a> anytime to find out. <a href="https://member.railwayspensions.co.uk/register" data-sf-ec-immutable="">You can also register for an account</a> for free if you haven’t already.</p><p>&nbsp;</p><h2>I’m a Defined Benefit (DB) preserved member – what do I need to know?</h2><h4><strong>1. Your pension will be based on when you stopped paying in</strong></h4><p>The RPS defined benefit Sections are mostly ‘final salary’ schemes. They give you a regular, guaranteed annual income for life, based on your salary and how long you’ve been a member of the scheme. This is, payable from a specified date, however, you may have scope to take it early or late. &nbsp;</p><p>The DB part of the Scheme also includes some Career Average Revalued Earnings (CARE) arrangements where your pension is based on your earnings right across your membership.&nbsp;</p><p>In both cases, as a preserved member, your pension will be based on your final or final average salary, and length of membership at the point you stopped paying in. </p><p>Even though you’re no longer paying in, your preserved pension may still increase, in line with the Scheme rules to protect it against inflation. </p><p><a href="https://member.railwayspensions.co.uk/defined-benefit-members/im-still-working/new-to-the-scheme" data-sf-ec-immutable="">For more general information on how a DB scheme works, visit the I’m new to the Scheme page.</a></p><h4>2. You cannot pay into BRASS, but your previous AVCs remain invested.</h4><p>As a preserved member you can no longer pay into your pension, either in the form of regular contributions, or Additional Voluntary Contributions (AVCs). </p><p>However, any AVCs you have already paid into BRASS or AVC Extra, will remain invested. This means their value can go up or down. </p><p>You should keep an eye on your fund choices to make sure they’re still suitable for you. </p><p>As a preserved member you can still check and change your BRASS or AVC Extra funds at anytime. <a href="https://member.railwayspensions.co.uk/defined-benefit-members/saving-more-BRASS-AVC-Extra/managing-my-BRASS" data-sf-ec-immutable="">You can find out how to do that on the managing my BRASS page.</a> </p><p>You may also be able to transfer the money in your BRASS pot or AVC Extra funds to another&nbsp;arrangement. For more information, check the <a target="_blank" href="https://cdn3.railpen.com/mp-sitefinity-prod/docs/default-source/rayn/guides-for-db-members---active-and-preserved/transfer-options.pdf?sfvrsn=54d41644_13">Read as You Need guide to transfer options for DB members</a>.</p><h4>3. Your loved ones could be taken care of when you die.</h4><p>If you die before taking your pension, a tax-free lump sum could be paid to those you care about. For preserved members, this lump sum is typically the lower of either:&nbsp; </p><ul data-list="1" data-level="1"><li>5 times your yearly basic pension or</li><li>4 times your Pay (this is Final Average Pay for some sections)</li></ul><p>Plus, any BRASS and AVC extra funds.</p><p>You can tell the Trustee who you would like the lump sum to be paid to, by making a nomination when you&nbsp;<a href="https://member.railwayspensions.co.uk/login" data-sf-ec-immutable="">log in to your myRPS account</a>. You should also remember to update your nominations if/when your circumstances change. The Trustee will take your wishes into consideration, when deciding who should receive the payment.</p><p><a href="https://member.railwayspensions.co.uk/pension-essentials/nominations" data-sf-ec-immutable="">Find out who you can nominate, and how, on the nominations page</a> </p><p>Your dependants, such as your family, may also be eligible to get a pension.</p><h4>4. You may be able to transfer if you want to</h4><p>If you join another Section of the RPS, for example if you change employers, then you may be able to transfer your preserved benefits from your previous section into your new ‘active’ section. </p><p>If you do this within 15 months of leaving your previous section then special terms may apply. </p><p>You may also be able to transfer your benefits to another scheme all together, as long as that scheme accepts transfers in and is registered with HMRC. </p><p>You should think this through carefully before making a decision and consider that a transfer may not be in your best interests. You may want – or need – to get advice first.</p><p><a href="https://member.railwayspensions.co.uk/pension-essentials/transferring-my-pension" data-sf-ec-immutable="">Visit the transferring in or out page for more information.</a></p><h4>5. You decide WHEN to take your pension.</h4><p>Your Normal Retirement Age (NRA) is usually between 60 and 65 years old and will depend on the rules of your RPS section. You can find your NRA by logging into your myRPS account and looking at your ‘membership details’ or in your Member Guide. </p><p><span style="text-decoration: underline">Early retirement </span></p><p>You may be able to start taking your pension before you reach your NRA, with the Trustee’s agreement. This is known as early retirement and is usually allowed for members aged over 55. In some cases, this may be from age 50 if you have a Protected Pension Age (PPA) and have not previously opted-out of the RPS. You can read more about PPA and how it might affect your pension <a href="https://member.railwayspensions.co.uk/defined-benefit-members/Im-planning-to-take-my-pension/when-to-retire" data-sf-ec-immutable="">You can find this on the when to retire page.</a></p><p>If you take your pension before your NRA, your payments will be lower as early retirement factors are applied, which reduces your pension, reflecting the fact that it will be paid for longer. There are different early retirement factors for preserved members, which means the reduction may be greater than taking your pension on leaving service early as an active member. The reduction can be significant, and you can request an estimate by logging into your myRPS account. </p><p><span style="text-decoration: underline">Late retirement </span></p><p>As a preserved member your pension will be paid at your NRA, unless you choose to defer payment. </p><p>Deferring payment is where you opt to take your pension at a later date, which is known as late retirement. </p><p>You would typically need to apply for this between 3 months before, and 3 months after your NRA. And you must start taking your pension before the age of 75. </p><p><a href="https://member.railwayspensions.co.uk/defined-benefit-members/Im-planning-to-take-my-pension/when-to-retire" data-sf-ec-immutable="">You can read more on the when to retire page.</a></p><h4>6. You need to keep your details up to date.</h4><h4><strong></strong></h4><p>As a preserved member, keeping track of your pension could help you plan for the future and make sure you know what income you might have when you stop work. </p><p>We’ll send you a statement every year, so you can see how much your pension might be worth. You can also request an estimate or use the Pension Planner in your myRPS account.&nbsp; </p><p>It’s important you keep your details up to date so we can continue to contact you about your pension and please remember to let us know if any circumstances change. </p><p><a data-sf-ec-immutable=""></a><a href="/login">You can update your details quickly and easily by logging into your myRPS account</a>.&nbsp; </p><p>&nbsp;</p><h2>I’m a IWDC preserved member - what do I need to know?</h2><h4>1. The value of your pension pot can go up or down.</h4><p>As a member of the IWDC Section, you and your employer pay in money into a 'pot' known as your Personal Retirement Account (PRA). The money in your PRA is then invested into the funds or strategies you select, with the aim of helping it to grow over time.&nbsp;</p><p>As a <strong>preserved</strong> IWDC member, you and your employer are no longer paying money into this pot, however, the money you’ve paid in so far, is still invested. This means that the value of your PRA could continue to go up or down depending on how your investments perform. </p><p><a href="https://member.railwayspensions.co.uk/iwdc-members/managing-investments/how-investments-work" data-sf-ec-immutable="">Find out more on the how investments work page.</a></p><h4>2.&nbsp;You decide where your pot is invested.<strong> </strong></h4><p>You can still manage, or change, where your PRA is invested. And you should keep an eye on your investment choices, to make sure they are right for you. </p><p><a href="https://member.railwayspensions.co.uk/iwdc-members/managing-investments/fund-choices" data-sf-ec-immutable="">Read more about your options on the my fund choices page</a></p><h4>3. You can set, or change, your Target Retirement Age (TRA), where applicable<strong> </strong></h4><p>If you choose to invest in a Lifestyle strategy, you should set a Target Retirement Age (TRA). This is&nbsp;the age that you are planning to take your IWDC pot.&nbsp;As you get within 10 years of your TRA, your money will gradually be moved into lower-risk funds to help protect the value of the pension pot you've already built up. You can set or change your TRA by logging in to your myRPS account. Please remember to review your TRA regularly in case your retirement plans change. </p><p><a href="https://member.railwayspensions.co.uk/iwdc-members/managing-investments/target-retirement-age" data-sf-ec-immutable="">Find out more on the My Target Retirement Age page.</a> </p><h4>4. Your loved ones could be taken care of when you die.<strong> </strong></h4><p>If you die while you’re a preserved IWDC member of the RPS, the value of your pension pot will be paid to your beneficiaries at the Trustees’ discretion. </p><p>You can let the Trustees know who you consider your beneficiaries to be by making a nomination or updating your nominations if your circumstances change. </p><p>There is no lump-sum death benefit payable for a preserved member. </p><p><a href="https://member.railwayspensions.co.uk/pension-essentials/nominations" data-sf-ec-immutable="">Find out who you can nominate, and how, on the nominations page</a> </p><h4>5. You can transfer your pension pot, if you want to<strong> </strong></h4><p>If you join a DB Section of the RPS, for example if you move employer, then you may be able to transfer your IWDC pot into your new Section. </p><p>Alternatively, you may be able to transfer your PRA to another scheme, as long as the scheme accepts transfers in and is registered with HMRC. </p><p>You should think this through carefully before making a decision and consider that a transfer may not be in your best interests. You may want – or need – to get advice first.</p><p><a href="https://member.railwayspensions.co.uk/pension-essentials/transferring-my-pension" data-sf-ec-immutable="">Visit the transferring in or out page for more information.</a> </p><h4>6. You decide WHEN to take your PRA. </h4><p>Your Pension Age is the age at which your pension pot is normally paid. Your Pension Age is set by your employer and is usually between 60 and 65. You can find out which Pension Age applies to you by checking your Key Features leaflet. This is available in the My Library area when you log in to your myRPS account.&nbsp;</p><p>Your Target Retirement Age (TRA) is the age you plan to take your IWDC pot.&nbsp;It’s important because your investments will automatically move into lower risk investments 10 years before your TRA if you’ve chosen to invest in a Lifestyle fund. Your chosen TRA could be earlier or later than your Pension Age, if you plan to take your pot at a different time.&nbsp;</p><p>If you are considering taking your IWDC pot before your Pension Age, you may be able to take it from age 55 or 57 depending on when you joined the Scheme, or at age 50 if you have a Protected Pension Age.&nbsp;</p><p>You may have a Protected Pension Age (PPA) if you were an active member of the Scheme on 5 April 2006. This gives you the right to apply for your pension pot from age 50.&nbsp; However, if you opted out of the RPS after that date, you may have lost your PPA and the earliest you can take your PRA is age 55.</p><p>Preserved members must take their pot before age 75.</p><p><a href="https://member.railwayspensions.co.uk/iwdc-members/im-planning-to-take-my-iwdc-pot/when-to-retire" data-sf-ec-immutable="">Find out more on the when to retire page.</a> </p><h4>7. You decide HOW to take your PRA </h4><p>There are 3 main ways to take your pension pot.&nbsp;You can:</p><ol><li>get a flexible income, taking it a bit at a time. This is known as drawdown</li><li>get a regular, secure income, known as an annuity</li><li>take all of the money in your IWDC pot as a cash lump sum.&nbsp; This is known as total encashment&nbsp;</li></ol><p>You can normally take up to 25% (but no more than £268,275) of your pension pot as a tax-free lump sum and then choose one, or a combination of these options for the remaining amount of your pension pot. You do not have&nbsp;to take a tax-free lump sum if you don’t want to.&nbsp;</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><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><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 choice is yours, but there are some restrictions that may apply in certain circumstances. For example, if you take your pot before age 55, you would have to take it as cash. If you wanted to use your PRA for annuity or drawdown, then you would have to transfer it to another provider, however you may not be able to access these options with the new provider until you reach age 55.</span><br></p><p><a href="/iwdc-members/im-planning-to-take-my-iwdc-pot/how-i-can-take-my-iwdc-pot">Read more on the how I can take my IWDC pot page.</a></p><h4>8. Staying up to date today, could help you tomorrow</h4><p>As a preserved member, keeping track of your pension pot, could help you plan for the future and make sure you know what income you might have when you stop work. </p><p>We’ll send you a statement every year, so you can see the current value of your PRA and how it’s invested. </p><p>You can also request an estimate or use the Retirement Modeller in your myRPS account to get an idea of what your pot might be worth when you retire and the ways you could consider taking it. </p><p>It’s important you keep your details up to date so we can continue to contact you about your pension and please remember to let us know if any circumstances change. </p><p><a href="/login">You can update your details quickly and easily by logging into your myRPS account</a>.&nbsp;</p><p>&nbsp;</p>

<p>Railpen, the investment manager of the Railways Pension Scheme (RPS), helps members get to grips with how their pension is managed and invested with a new member-focused report.<br></p><p>The <a href="https://cdn-suk-railpencom-live-001.azureedge.net/media/media/34deiw1y/so-member-report-2022_final.pdf" target="_blank" data-sf-ec-immutable="">2022 Sustainable Ownership Review</a> has been written purely for members. This is because we know that many of our members care about how their pension is managed. We also know that they have high expectations about where it’s invested and trust Railpen to do a good job when it comes to choosing where to invest. <br></p><p>There’s an appetite among members to know more about the investment decisions we make and our reasons for choosing to invest or disinvest in a particular company. We realise that the complexity of sustainable ownership remains a barrier for many members to fully understand the bigger picture. This is why we’ve developed our second Sustainable Ownership Review.</p><p><br></p><h3>Written for members, with their help<br></h3><p>Member feedback is extremely important to us and we like to incorporate it in our approach wherever possible. This is why we’ve taken into account feedback received by members of the railways pension schemes. <br></p><p>To support in writing the report, Railpen surveyed members and held focus groups to really understand what would be of most use to them and how they want to be communicated with on sustainable ownership matters.<br></p><p>The 2022 Review provides a comprehensive but straightforward information written in a clear and easy-to-understand way. It is short and snappy, and offers an ample spread of what Railpen has managed to achieve on members’ behalf throughout 2022.</p><p>&nbsp;</p><h3>What our members are telling us<br></h3><p>As with the previous issue of the report (2021 Sustainable Ownership Member Review), when surveyed last year members said the top 3 priorities for them were fair treatment of workers, climate change and fair pay. You also said that governance (how well a company is managed) is really important to you. <br></p><p>To help illustrate some of the work we’ve done in 2022 to address those issues, we’ve provided case studies in the Sustainable Ownership Member Review on pages 10-14. <br></p><p>In terms of how you like us to communicate with you, you said that you want us to continue to use real examples of our work, are interested in the link between what we do on sustainable ownership and how it improves financial outcomes for you as scheme members, want more explanation on the numbers and outcomes we talk about in our reports and want to hear from us more often. <br></p><p>We will continue to take into account your views and feedback and to incorporate it into working practices and the products we develop for you going forward. </p><p>&nbsp;</p><h3>How we address members’ top issues and influence positive change <br></h3><p>We use different engagement methods when trying to influence for positive change at a company. This is evident from our work with NextEra Energy Inc. one of the largest US based utility companies. We wanted NextEra to provide more detailed information on its approach to engaging with policymakers on climate change. We spoke to the company individually, and also used the ownership rights we get as shareholders together with other likeminded investors. After our efforts, NextEra committed to publishing more information on its policy engagement. You can read our case study 'NextEra Energy – working together to make a difference on climate change' on page 11 of the <a href="https://cdn-suk-railpencom-live-001.azureedge.net/media/media/34deiw1y/so-member-report-2022_final.pdf" target="_blank" data-sf-ec-immutable="">2022 Member Review</a>.&nbsp;<br></p><p>We also talk about corporate governance* a lot at Railpen and have a process to exclude companies from our portfolio where we identify governance and behaviour concerns. As part of this process, in 2019 we excluded the Japanese optics and medical devices manufacturer Olympus because of concerns about their governance practices. In 2022, following continued engagement, we were pleased to remove the company from our exclusion list as a result of improvements to their board and committee structure. You can read more about the concerns we had and how we addressed them with Olympus on page 13 of the <a href="https://cdn-suk-railpencom-live-001.azureedge.net/media/media/34deiw1y/so-member-report-2022_final.pdf" target="_blank" data-sf-ec-immutable="" data-sf-marked="">2022 Member Review</a>.<br></p><p>Our positive work on workforce and worker voice issues (page 10 in the <a href="https://cdn-suk-railpencom-live-001.azureedge.net/media/media/34deiw1y/so-member-report-2022_final.pdf" data-sf-ec-immutable="" data-sf-marked="" target="_blank">2022 Member Review</a>) – one of our members’ top concerns – continued in 2022. &nbsp;We also focussed our attention on the topic of fair pay and our Member Review provides a case study, which you can read on page 12, as to how we voted against a company’s’ remuneration approach where executive pay was out of line with how the rest of the employees are rewarded. If you would like to find out more about our voting work, give our <a href="https://member.railwayspensions.co.uk/knowledge-hub/news-and-views/blog/rps-blog/2023/03/27/voting-for-positive-change" data-sf-ec-immutable="" data-sf-marked="" target="_blank">Voting for positive change blog</a> a read. For a more in depth overview of our voting principles, check out our Global <a href="https://cdn-suk-railpencom-live-001.azureedge.net/media/media/yl2lq4y3/2023-voting-policy.pdf" data-sf-ec-immutable="" data-sf-marked="" target="_blank">Voting Policy</a>. </p><p>&nbsp;</p><h3>How we’ll continue to communicate with members on the topics important to them<br></h3><p>Our ultimate aim &nbsp;to achieve a two-way dialogue with members where they feel empowered to ask questions and to challenge us in our thinking remains the same. <br></p><p>We will continue our efforts to show members that we want and need to hear from them so we can make more customer-informed decisions our investment approach and communications. We will do this through various touchpoints we have planned in for the coming months. The next available opportunity will be in January 2024 when we’ll hold some roundtables with a selected cohort of our members. We’ll use this opportunity to dive deeper in their perceptions of our work on sustainable ownership through thought-provoking and engaging conversations. We’ll also look to understand whether the top 3 issues they’ve highlighted previously remain the same or something else has struck them recently. &nbsp;If you have some time to spare and would like to get involved with helping us shape our future sustainable ownership priorities, email us at <a href="mailto:so@railpen.com">so@railpen.com</a> so we can keep you informed of upcoming member events and feedback gathering initiatives. &nbsp;&nbsp;<br></p><p>We welcome all your questions or feedback on the <a href="https://cdn-suk-railpencom-live-001.azureedge.net/media/media/34deiw1y/so-member-report-2022_final.pdf" target="_blank" data-sf-ec-immutable="">2022 Member Review</a> and on any other sustainable ownership-related publication or topic. Please let us know what you think at <a href="mailto:so@railpen.com">so@railpen.com</a> </p><div><br clear="all"><div id="ftn1"><p>&nbsp;</p><p>&nbsp;</p></div><div id="ftn2"><p><a href="https://railpen-my.sharepoint.com/personal/jenny_prodanova_railpen_com/Documents/0.Personal/2023/Member%20sites%20content/Blogs/SO%20Member%20Review%20Blog/20231204_SO%20Member%20Review%20blog_v0_8_CE.docx#_ftnref2" name="_ftn2" title="" data-sf-ec-immutable=""></a>* Good corporate governance is when a company is run by an expert, diverse group of people and is supported by effective systems and processes. This means a company is more likely to be able to thrive over the long-term.</p></div><div id="ftn3"><p>&nbsp;</p></div></div>

<p>By the time you reach your 50s you may have a pretty good idea of what you want later life to look like for you. Retirement doesn’t probably feel like a distant concept anymore and you’re starting to give it a lot more thought these days.&nbsp;<br></p><p>If you’re only just embarking on your pension saving journey, you still have a good few years to prioritise retirement planning and to save up for a decent life after work. <br></p><p>Whatever your situation, your 50s is the ideal time to up your saving game and to make the most of the opportunities available to you. Here are a few ideas to help you enhance your pension saving journey and to make sure your retirement savings are on track to provide you with the sort of lifestyle you hope for when you stop work.</p><p>&nbsp;</p><h3>Define your retirement goals<br></h3><p>If you haven’t yet given later life a thought, do it now. How do you imagine your lifestyle? You’d probably want to enjoy some treats now and then like a holiday abroad, meals out and taking up new hobbies. Will you have any caring responsibilities or will you want to support a family member financially? <br></p><p>Crystallising your retirement goals now you still have a few years to save up may be just what you need to ensure you have enough to fund them when the time comes. <br></p><p><a href="https://www.retirementlivingstandards.org.uk/" data-sf-ec-immutable="">The Retirement Living Standards</a>* can help you with that. They have been developed to help you picture what kind of lifestyle you could have in retirement. The standards show you what life in retirement looks like at 3 different levels, and what a range of common goods and services would cost for each level. For example, a single person will need approximately £37,300 per year for a comfortable standard of living when they finish work. <br></p><p>If your current level of saving isn’t on target to pay for the standard of living you hope for in retirement, you may need to think about saving more. One way to do this is by paying Additional Voluntary Contributions (AVCs).</p><p>&nbsp;</p><h3>Consider boosting your savings with AVCs<br></h3><p>You may want to consider paying extra into your pension, if you can. Paying even a little more in to your pension savings now could eventually add up to a lot more to enjoy when you stop work. AVCs provide a real opportunity to build up your savings and make up for lost time.<br></p><p>The main <a href="/defined-benefit-members/saving-more-BRASS-AVC-Extra">AVC arrangement for defined benefit (DB) members</a> of the Railways Pension Scheme is called BRASS. You can pay as little as £2 per week or £10 per month on top of the normal contributions you make to your pension. There’s a maximum you can pay in each year – usually 15% of your gross earnings. If you want to pay more than the BRASS maximum, you can join AVC Extra (not available to Network Rail members). <br></p><p><a href="/iwdc-members/Im-still-working/saving-more">Defined contribution (IWDC) members pay AVCs</a> directly into their investment accounts. <br></p><p>There are many benefits to saving extra with AVCs:<br></p><ul><li>you can save as little as £2 a week</li><li>you don’t need to save a set amount every month</li><li>you can pay into AVCs with money from overtime and bonuses, which don’t qualify for your main scheme pension</li><li>you get tax relief on what you put in (up to Annual Allowance tax limits)<br></li></ul><p>To see how much your RPS income will be, log in to (or register for) your <a href="https://member.railwayspensions.co.uk/login" data-sf-ec-immutable="" data-sf-marked="">myRPS account</a>. Use the ‘Pension Planner’ to model how saving more with BRASS could make a big difference and help you meet your target. <br></p><p>You should also bear in mind that for the 2023-24 tax year there’s an annual pension savings limit that can benefit from tax relief of £60,000 or the value of your taxable earnings, whichever is lower. Read more about this limit below.</p><p><br></p><h3>Are you making the most of your Annual Allowance?</h3><p>Annual Allowance is the limit on the total amount you can save towards your pension in a single tax year before you pay any tax on your pension savings. It is currently either 100% of your annual earnings or £60,000, whichever is lower, unless the Tapered Annual Allowance** applies to you.</p><p>The Annual Allowance renews at the start of every financial year (in April) so it may be worth paying in as much as you can over the next few years to make sure your savings are benefitting from tax relief. Saving tax free for your future is one of the most valuable benefits of paying in a workplace pension and it’s worth taking advantage of all the pros that come with it. That doesn’t mean paying in the full allowance, but paying in as much as is realistic and possible for you at this moment in time. </p><p>You may also be able to carry forward any unused allowances from the last three years.</p><p>&nbsp;</p><h3>Your pension savings are invested so compounding is a big plus!<br></h3><p>We’ve covered compounding in previous articles from the pension planning series but we can’t miss to highlight its valuable role in making your money grow, especially now you’re approaching the end of your working life. It’s a key factor when it comes to investing and one of the most significant benefits of having your money invested in a pension. <br></p><p>It is essentially the process of your investments achieving growth not just on the original sum invested but on the growth of it as well. It’s especially powerful if your money has been invested for a while but even if you start saving for a pension now, it will help your money grow. <br></p><p>Compounding only applies to members in the Industry-Wide Defined Contribution (IWDC) scheme and members who pay in Additional Voluntary Contributions (AVCs) towards their pension.</p><p><br></p><h3>Re-evaluate your attitude to risk<br></h3><p>If you’ve been saving into an IWDC pot or with AVCs for a while, you may want to consider reviewing your investment fund choices now you’re on a down track to retirement. You may have had a riskier approach so far, but it’s perhaps time to reduce your exposure to higher risk funds to ensure you’re not taking any unnecessary risks. The value of money invested can go up as well as down so it’s important to ensure the savings you’ve accumulated to date are ‘safer’ being invested in more ‘stable’ funds which have lower risk of losing value over time.</p><p><br></p><h3>Turn to Pension Wise for free guidance<br></h3><p>Pension Wise, a government-backed service helping people to understand the pension options available to them, offers free, impartial guidance for over 50s. You can book an hour-long appointment with one of their pensions specialists and they’ll talk you through the options available to you and any other things you may need to keep in mind in the run up to retirement.</p><p><br></p><h3>Speak to a financial adviser <br></h3><p>You may want to seek expert financial advice if you have little or no experience of managing your pension and extended finances and don’t feel confident in making decisions about them. Go to <a href="https://www.unbiased.co.uk/" data-sf-ec-immutable="">https://www.unbiased.co.uk/</a> to find an Independent Financial Adviser (IFA) who could help you take control of your financial future.</p><p>&nbsp;</p><p><br></p><p><em>*Retirement Living Standards – the Standards have been developed by the People and Lifetime Savings Association (PLSA) and provide a rule of thumb guidance on common costs for three different levels of expenditure in retirement to help pension savers understand how much money they will need to live the lifestyle they want in retirement <a href="https://www.retirementlivingstandards.org.uk/" data-sf-ec-immutable="">https://www.retirementlivingstandards.org.uk/</a> </em><br></p><em></em><p><em>**Tapered Annual Allowance - the Tapered Annual Allowance (TAA) generally applies to those on the highest incomes. This allowance gradually reduces the amount you can save into your pension plan annually depending on your income.&nbsp;It may affect you if your income is over £260,000 (previously £240,000) from 6 April 2023.</em></p>

<p>If that’s the case for you, now may be the time to up your saving game and to prioritise your pension over all other things your money could be going towards.</p><p>Here are a few thoughts around pension saving in your 40s that could help you stay focused on your journey and make the most out of perhaps the most financially rewarding time of your career.</p><p>&nbsp;</p><h3>Prioritising saving for later life</h3><p>A recent research by Standard Life* which sampled UK adults aged 18 to 80 found that 72% of people surveyed do little or no retirement planning while 78% hope for certainty of income in retirement. There’s a clear disproportion between carrying overly optimistic expectations about retirement and doing very little or no preparation at all now in order to be able to meet those expectations. Don’t be the statistic and act now to be able to afford the retirement you hope for.</p><p>Now you’ve got a few financial milestones behind your back and have a bit more freedom to fund your own wants and needs, why not think about your future self and make the most of the saving opportunities you have. It may be tempting to spend your disposable income on exotic holidays or investing in property, but is this going to help you have a decent life in retirement? </p><p>You can’t borrow for retirement and you can’t make more of time so it’s important to focus on saving for later life now you can afford to invest more in your pension. Do it now and you’ll thank yourself later when your working days are over and you’re living an enjoyable life thanks to the sacrifice you’ve made previously.</p><p>With the Railways Pension Scheme, you can save extra towards your pension if you want to. You could do this by paying in Additional Voluntary Contributions (AVCs). AVCs are a great way to save tax-free either by giving your pension a one off boost or making regular additional payments towards it. </p><p><a href="/pension-essentials/saving-more">More on AVCs is available on our website.</a></p><p>&nbsp;</p><h3>Compounding is still a key factor</h3><p>Compounding – the effect of money invested achieving growth on the growth they’ve achieved initially, not just on the original sum invested - continues to be a great helper when it comes to saving for later life. It’s a very powerful positive of having your money invested for a long period of time as the longer it’s been invested, the longer it has to grow.</p><p>If you’ve started saving for later life in your 20s, you’ve probably managed to build up a sizeable nest egg by now. Thanks to compounding, you’ll probably continue to benefit from further growth on your savings, not just from the money you keep paying in but from the compounding effect on it as well.</p><p>Read more about compounding in our previous blogs in the pension planning series below.<br></p><p>&nbsp;</p><h3>Have you accumulated a few different pension pots over the years? </h3><p>You’ve probably been saving for retirement for a couple of decades now and it’s likely you’ve built up a few pension pots over the years. While in your 40s, you’re in the middle of your saving journey and now might be the perfect time to take stock of what you have. &nbsp;</p><p>If you think you've lost track of a pension, you may want to turn to the&nbsp;<a href="https://www.pensiontracingservice.com/" target="_blank" data-sf-ec-immutable="">Pension Tracing Service</a>&nbsp;for help. It's a free, impartial service to help find your lost pensions and then offer guidance on what to do with them.</p><p>You may also want to consider starting a pension planner and keeping track of how your different pots are performing. You may also benefit from seeking independent financial advice. Go to&nbsp;<a href="https://www.unbiased.co.uk/" data-sf-ec-immutable="">https://www.unbiased.co.uk/</a>&nbsp;to find an independent adviser from a trusted source.&nbsp; </p><p>If you’ve previously worked for another employer within the rail industry and were a member of that Section of the RPS, you may be able to transfer those benefits into your new employer’s Section of the RPS. </p><p>However if you’ve built up pension benefits in another pension scheme, you may not be able to transfer these into the RPS. This will depend on your employer’s policy, so you may need to discuss with them.</p><p>More on transferring is available in your Member Guide, which is available in ‘My Library’ when you log into your <a href="/my-rps">myRPS account</a>.</p><p>If you haven’t really given retirement a thought yet, there’s still time to start saving and make a big difference to your financial future.</p><p>---</p><p>*Retirement Voice 2022, Exploring how retirement attitudes and experiences are changing by Standard Life&nbsp;</p>

<p>If you're thinking about moving abroad permanently or buying a second home outside of the UK, read on for the details you need to know.</p><p><strong>You can have your pension paid into an overseas bank account</strong></p><p>If you’re changing from a UK bank account to an overseas bank, it’s important to make sure your details, and the details of your new chosen bank are correct. </p><p>Once you’ve registered with your chosen bank, the best way for us to verify the bank and your details is through you obtaining and sending us a bank statement from your new bank. When we receive this, we’ll send it to Citibank, the company we use to exchange your pension into your new country’s currency, and they’ll be able to vet this new bank quickly. This will speed up the process of getting your pension to your new bank account.</p><p>If you’ve got an overseas bank account, it costs £2 a month (£26 per year from us), which we’ll offset by getting a good exchange rate through Citibank. You’ll need to check with the overseas bank if there’s a charge for receiving an overseas payment.</p><p><strong>Can you still use a UK bank account to receive your pension? </strong></p><p>If you plan on keeping your UK bank account, we’ll pay you in the same way as if you were living in the UK. However, it’s important to check you can maintain a UK bank account without a UK address and that will depend on your current UK bank. </p><p>If you’re closing your UK bank account, you’ll need to <a href="/defined-benefit-members/Im-taking-my-pension/updating-bank-details">complete a form with the details of your overseas bank</a>.</p><p><strong>If you’re thinking of transferring to a scheme overseas…</strong></p><p>Transferring can take a couple of days because of the additional process. You can find more information about transfers <a target="_blank" href="https://cdn3.railpen.com/mp-sitefinity-prod/docs/default-source/rayn/guides-for-db-members---active-and-preserved/transfer-options.pdf?sfvrsn=54d41644_13"><strong>here</strong></a>.</p><p><strong>You’ll still receive written correspondence from us</strong></p><p>Pension documents will still be sent to you overseas, such as your:</p><ul><li>Annual Benefit Statement (ABS) </li><li>Summary Funding Statement (SFS)</li><li>Pension saving statement</li><li>Newsletters</li></ul><p>In some countries, the postal service may take longer for you to receive your documents for us, so it’s important that you research this. However, by <a href="/register">registering for your myRPS account</a>, you can access all your important pension documents online.</p><p>We’re currently exploring giving members the option of opting out of paper communications and will update you with our progress. </p><p><strong>Impact on cost of living increases to State Pension if you’re over State Pension age</strong> </p><p>With certain countries, your UK State Pension will be fixed and you may not receive any cost of living increases to it.</p><p>Further information about the State Pension if you retire abroad is available on the <strong>Gov.uk</strong> website at <strong><a href="https://www.gov.uk/state-pension-if-you-retire-abroad" data-sf-ec-immutable="">gov.uk/state-pension-if-you-retire-abroad</a></strong>.</p>