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<h4>This article is for active members of the Railways Pension Scheme (RPS) Industry-Wide Defined Contribution (IWDC) Section.</h4><div><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">Whether you're looking for a better work-life balance, spending more time with family, or gradually easing towards retirement, working part-time can be an attractive option.</span></div><div><br></div><div>But before making the change, it's worth understanding that it could impact more than just your take-home pay.</div><div><br></div><div>Working fewer hours could affect how much is paid into your Personal Retirement Account (PRA), also known as your pension ‘pot,’ in the future. And that could affect how much it is worth when you retire.</div><div><br></div><div>This is because your pot is made up of:</div><div><br></div><ul><li>Your contributions</li><li>Employer contributions</li><li>Investment growth</li></ul><div>In this article, we'll explain some of the main ways reducing your hours could affect your pension to help you decide whether part-time work is right for you.</div><div><br></div><h3>What happens to the money you've already saved?</h3><div><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">The good news is that the money you've already saved in your pension pot stays invested for your future.</span></div><div><br></div><div>Going part-time does not remove any of the money you've already saved. Your pension pot will continue to be invested, and its value can still go up or down over time depending on how those investments perform.</div><div><br></div><div>Working fewer hours will only affect how much you and your employer pay into your pot from that point onwards.</div><div><br></div><h3>How could working fewer hours affect the money you save in future?</h3><div>If you reduce your hours, you might save less into your pension each month. This is because pension contributions are usually based on a percentage of your pay.</div><div><br></div><div>If moving to part-time hours reduces your pay, it could reduce the amount paid into your pension pot.</div><div><br></div><div>Over time, this could affect how much your pension pot is worth when you come to take your benefits.&nbsp;<span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">The longer you work part-time, the greater the impact could be on the amount you save for retirement.</span></div><div><br></div><h3>How could your pension contributions change?</h3><div><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">Your pension contributions could reduce if your pay reduces. That's because contributions are normally calculated as a percentage of your pensionable pay.&nbsp;</span></div><div><br></div><div>Pensionable pay is the part of your earnings that counts towards your pension contributions. Your employer decides which parts of your pay are pensionable, so it may not include things like bonuses or overtime.</div><div><br></div><div>So, if you're working fewer hours and earning less, the amount paid into your pension pot could reduce too.</div><div><br></div><div>And depending on how your employer calculates contributions, the amount your employer pays into your pension pot could also change.</div><div><br></div><div>This means less money may be paid into your pension pot while you're working part-time.</div><div><br></div><h3>What role do investments play?</h3><div><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">The value of your IWDC pension depends on more than just contributions.</span></div><div><br></div><div>The money in your pension pot is invested. This means the value of your pot will also depend on how your investments perform.</div><div><br></div><div>So, while working part-time could reduce the amount being paid into your pension pot, investment performance will also affect how much your pot is worth when you retire.&nbsp;</div><div><br></div><div>There’s a range of funds to choose from, each with different aims and levels of risk. Learn more about the <a href="https://www.railwayspensions.co.uk/iwdc-members/managing-investments/investing--the-basics-i-need-to-know" data-sf-ec-immutable="">basics of investing here</a>.</div><div><br></div><h3>What should you check before going part time?</h3><div><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">Before making a decision, you may want to: -</span></div><div><br></div><ul><li>ask your employer what your new pensionable pay would be</li><li>check whether your contribution rate would change</li><li>ask how much your employer would pay into your pension</li><li>review your pension savings and investment choices through your <a href="https://www.railwayspensions.co.uk/login" data-sf-ec-immutable="">myRPS account</a></li><li>think about <a href="https://www.railwayspensions.co.uk/iwdc-members/Im-still-working/saving-more" data-sf-ec-immutable="">whether you could afford to save more</a> if your regular contributions reduce</li></ul><div>Your employer can explain how a change in your hours and pay would affect the contributions paid into your pension.</div><div><br></div>

<div><h5>This article is for active defined benefit (DB) members of the Railways Pension Scheme (RPS).</h5></div><div>You might be thinking about reducing your hours to achieve a better work-life balance, spend more time with family, ease into retirement, or simply have more flexibility in your week.</div><div><br></div><div>Whatever your reason, you might be wondering what will happen to your pension.</div><div><br></div><div>The good news is that the pension you've already built up is protected. But working fewer hours could affect:</div><div><br></div><ul><li>how much pension you build up in future</li><li>how much you pay into your pension</li><li>any Additional Voluntary Contributions (AVCs) you're making</li></ul><div>In this article, we'll explain some of the main ways reducing your hours could affect your pension to help you decide whether part-time work is right for you.</div><div><br></div><h3>What happens to the pension you’ve already built up?</h3><div></div><div>The pension you've already built up doesn't disappear because you decide to work fewer hours. The benefits you've earned before moving to part-time hours will still belong to you and are based on your pensionable salary and service at that time.&nbsp;</div><div><br></div><div>Going part-time will only affect how much pension you build up from that point onwards.</div><div><br></div><h3>Will you build up less pension if you work part time?</h3><div><p>You could build up your pension benefits more slowly.</p><p><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit; color: inherit; font-family: inherit">That's because we calculate your pension benefits using:</span></p></div><ul><li>your full-time rate of pay</li><li>the hours you've worked</li><li>the number of years you've worked</li></ul><div>If you go part-time, your pension benefits will be based on your full-time rate of pay, but they're adjusted to reflect the hours you now work.</div><div><br></div><div>For example:</div><ul><li>20 years of working 40 hours a week (full time) = 20 years’ pensionable membership</li><li>20 years of working 20 hours a week (part time) = 10 years’ pensionable membership</li></ul><div>If you change your working hours during your career, we calculate each period separately and then add them together to work out your total membership.</div><div><br></div><div>That means the longer you work part-time, the greater the impact could be on the pension benefits you build up in the future.</div><div><br></div><h3>How could your pension contributions change?</h3><div><p>When you work part-time, your employer will reduce your pension contributions to reflect the hours you've worked.</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">We calculate your contributions using the full-time contribution rate for your job and then adjust that amount to reflect your part-time hours.</span></p></div><div>For example, if you work half of your employer's full-time hours, you'll pay about half of the full-time contribution amount.&nbsp;</div><div><br></div><div><p>Your employer will change your contributions the first payroll date after:</p></div><ul><li>you start working part-time</li><li>your working hours change, or</li><li>you return to full-time work.&nbsp;</li></ul><div>This means you'll usually pay less into your pension when you reduce your hours, but you'll also build up pension more slowly</div><div><br></div><h3>What happens to your Additional Voluntary Contributions (AVCs)?</h3><div><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">Your <a data-sf-ec-immutable="" href="https://www.railwayspensions.co.uk/defined-benefit-members/im-still-working/saving-more">Additional Voluntary Contributions (AVCs) contributions</a> could change too.</span></div><div><br></div><div>If you pay AVCs as a percentage of your pay, reducing your hours could reduce the amount you contribute each month.</div><div><br></div><div>If you pay a fixed amount, your contributions may stay the same.</div><div><br></div><div>The impact will depend on how you set up your AVC contributions. If you pay AVCs, check how your arrangement works before you reduce your hours.</div><div><br></div><div>You can also read our guides for <a href="https://cdn-suk-memberportal-preprod-002.azureedge.net/mp-sitefinity-preprod/docs/default-source/rayn/guides-for-active-(contributing)-members/a-guide-for-brass-members_may26.pdf?sfvrsn=18a5265a_25">BRASS</a> and <a href="https://cdn-suk-memberportal-preprod-002.azureedge.net/mp-sitefinity-preprod/docs/default-source/rayn/guides-for-active-(contributing)-members/guide-for-avc-extra.pdf?sfvrsn=67264a34_22">AVC Extra</a> members for more information about contributions.</div><div><br></div><h3>What should you check before going part time?</h3><div><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">Before making a decision, you may want to:&nbsp;</span></div><div><br></div><ul><li>ask your employer how your pensionable pay and contributions would change</li><li>check how working fewer hours could affect the pension benefits you build up in the future</li><li>check how any Additional Voluntary Contributions (AVCs) you make could be affected</li><li>get an estimate of your pension benefits through your <a data-sf-ec-immutable="" href="https://www.railwayspensions.co.uk/login">myRPS account</a></li></ul><div><p>Your employer can explain how a change in your hours and pay would affect your contributions and the benefits you build up for your DB pension.</p></div>

<div>Scammers take advantage of busy periods, using sophisticated tactics to target people. As Black Friday and Christmas approach, stay alert to scams and fraud.&nbsp;</div><div><br></div><div>It was reported that £17.7 million was lost to pension fraud in 2025, with an average of £47,000 per victim, according to <a data-sf-ec-immutable="" target="_blank" href="https://www.thepensionsregulator.gov.uk/media/tfwhiccf/fighting-pension-fraud-reference-slides-march-2025.pdf">Action Fraud</a>, now Report Fraud.&nbsp;</div><div><br></div><div>Being scammed doesn’t just affect finances. Victims often describe feelings of guilt and shame, along with a loss of confidence.&nbsp;&nbsp;</div><div><br></div><h5>How to help protect your pension&nbsp;</h5><div>Protecting your pension savings is our priority. Railpen, the Scheme’s administrator, has strong safeguards in place to protect your personal information and pension savings. However, you also have a vital part to play in keeping your pension safe.&nbsp;</div><div><br></div><h5>Stay alert to scams and fraud&nbsp;</h5><ul><li>Only use the official websites: The official websites for the railway pension schemes and Railpen are:&nbsp;<ul><li><a data-sf-ec-immutable="" target="_blank" href="https://www.railwayspensions.co.uk/home">railwayspensions.co.uk&nbsp;</a></li><li><a data-sf-ec-immutable="" target="_blank" href="https://www.btppensions.co.uk/">btppensions.co.uk&nbsp;</a></li><li><a data-sf-ec-immutable="" target="_blank" href="https://www.railpen.com/">www.railpen.com&nbsp;</a></li></ul></li><li>Genuine emails from the Scheme or Railpen will come from @railpen.com.&nbsp;</li><li>Double check the spelling of emails, websites and links: Scammers might try to use links with slight spelling mistakes to send you a page designed to look exactly like official websites.&nbsp;</li><li>Cold calls about pensions are illegal. Be wary of free pension review offers and promises of high or guaranteed returns, too.&nbsp;</li><li>Don’t rush: Scammers often create a sense of urgency and might claim to offer ‘free’ or ‘limited’ deals.&nbsp;</li></ul><h5>Learn more about pension and other scams&nbsp;</h5><ul><li>Learn how to spot the warning signs and explore <a href="https://www.railwayspensions.co.uk/pension-essentials/pension-scams" target="_blank" data-sf-ec-immutable="">10 ways to help protect your pension</a>.</li><li>You can also learn about scams on the following pages and websites:&nbsp;<ul><li><a data-sf-ec-immutable="" target="_blank" href="https://www.moneyhelper.org.uk/en/money-troubles/scams/how-to-spot-a-pension-scam">MoneyHelper&nbsp;</a></li><li><a data-sf-ec-immutable="" target="_blank" href="https://www.fca.org.uk/scamsmart">Financial Conduct Authority&nbsp;<div></div></a></li></ul></li><li>For advice on staying secure online at home, visit the <a data-sf-ec-immutable="" target="_blank" href="https://www.ncsc.gov.uk/cyberaware/home">National Cyber Security Centre's website</a>.</li></ul><h5>If you’ve been targeted by scammers&nbsp;</h5><div>Check the Financial Conduct Authority’s Financial Services Register at <a data-sf-ec-immutable="" target="_blank" href="https://register.fca.org.uk/s/">register.fca.org.uk</a>. Check whether the firm is authorised to offer the advice or services. Compare its contact details with those on the register.&nbsp;</div><div><br></div><div>If you think you’ve been targeted by fraud, report it to Report Fraud on 0300 123 2040. In Scotland, call 101. You can also visit <a data-sf-ec-immutable="" target="_blank" href="http://www.reportfraud.police.uk/contact-us/">www.reportfraud.police.uk/contact-us/</a>.&nbsp;</div>

<div>Sunday 25 October is <a href="https://nationalpensiontracingday.co.uk/" target="_blank" data-sf-ec-immutable="">National Pension Tracing Day</a>, and we’re calling on you to accept a mission that could make a real difference to your retirement. Think of yourself as a pension-tracing agent with a mission to track down any pensions you may have lost.&nbsp;</div><div><br></div><div>It’s a mission worth taking seriously. Around 3 million pension pots across the UK are thought to be lost or forgotten, with an average value of £6,220 each. That’s more than £18.7 billion waiting to be reunited with its owners.&nbsp;</div><div><br></div><p>Paperwork gets misplaced, jobs change and addresses get updated. It’s easy to lose track of old pensions. The good thing is you don’t need to be a financial expert to track them down. All you need is a bit of time and a clear process.&nbsp;</p><h5><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">How do you find a lost pension?&nbsp;</span></h5><div><div><ol><li data-leveltext="%1." data-font="" data-listid="39" data-list-defn-props="{" data-aria-posinset="1" data-aria-level="1"><p><strong>Retrace your career:</strong>&nbsp;</p><p>List all the places you’ve worked in the past and roughly how long you worked there. Old CVs, payslips, P45s or P60s may help you.&nbsp;</p></li></ol></div><div><ol start="2"><li data-leveltext="%1." data-font="" data-listid="39" data-list-defn-props="{" data-aria-posinset="2" data-aria-level="1"><p><strong>Search your records:</strong></p><p>Go through old paperwork and see if you have any pension statements from previous employers.&nbsp;</p></li></ol></div><div><ol start="3"><li data-leveltext="%1." data-font="" data-listid="39" data-list-defn-props="{" data-aria-posinset="3" data-aria-level="1"><p><strong>Sense check:&nbsp;</strong></p><p>Get in touch with the provider or administrator and make sure your contact details are up to date for each pension you’ve got.&nbsp;</p></li></ol></div></div><div><div><ol start="4"><li data-leveltext="%1." data-font="" data-listid="39" data-list-defn-props="{" data-aria-posinset="4" data-aria-level="1"><p><strong>Check for gaps:&nbsp;</strong></p><p>If you’ve spotted any gaps in your pension history, you’ll need to contact the employer’s HR department or use the <a data-sf-ec-immutable="" href="https://www.gov.uk/find-pension-contact-details" target="_blank" rel="noreferrer noopener">government’s free Pension Tracing Service</a>. Some companies offer a similar tracing service, but many charge a fee.&nbsp;</p></li></ol></div><div><ol start="5"><li data-leveltext="%1." data-font="" data-listid="39" data-list-defn-props="{" data-aria-posinset="5" data-aria-level="1"><p><strong>Get in touch:&nbsp;</strong></p><p>Contact the pension provider or administrator to check if they’ve got any record of a pension for you. You’ll need your National Insurance number and possibly other details too.&nbsp;</p></li></ol><div style="margin-left: 60px">If they do, and you didn’t transfer your pension pot out to another pension:&nbsp;</div><ul style="margin-left: 60px"><li>Find out how much is in the pot and ask for an up-to-date statement.</li><li>Update your contact details. </li><li>See if you can register for online access to your pension.&nbsp;</li></ul><h5>How do I keep track of my RPS Pension?&nbsp;</h5><p>Keep track of your RPS pension by <a href="https://www.btppensions.co.uk/login" target="_blank" data-sf-ec-immutable="">logging into your myRPS account </a>and checking the details we have are up to date.&nbsp;</p><p>For more tips on tracing your lost pensions, visit the <a href="https://nationalpensiontracingday.co.uk/" target="_blank" data-sf-ec-immutable="">National Pension Tracing Day website</a>. Accept your #LicenceToTrace and see what you could uncover.&nbsp;</p><h5>Why should you trace lost pensions?</h5></div></div><div>Here are a few of the reasons to trace your lost pension:&nbsp;</div><div><br></div><ul><li>You may have more saved than you originally thought.&nbsp;</li><li>You can update your contact details. This means your pension provider can send you important information and updates going forward.&nbsp;</li><li>You can check to see if your <a data-sf-marked="" data-sf-ec-immutable="" target="_blank" href="https://www.railwayspensions.co.uk/pension-essentials/nominations">nomination</a> is up to date.</li><li>You can find out more about your options, whether any of your pension savings are still invested, and whether you have a say in how those funds are invested.&nbsp;</li></ul><h5>What should you do once you’ve found your lost pension?&nbsp;<br></h5><div>Use this new information to build a clearer picture of your savings and identify any changes you can make.&nbsp;&nbsp;</div><div><br></div><div>Use the <a href="https://www.railwayspensions.co.uk/knowledge-hub/help-and-support/retirement-budgeting-calculator" target="_blank" data-sf-ec-immutable="">Retirement Budgeting Calculator</a> as a guide for how much you’ll need to save for the life you want after work.&nbsp;</div><div><br></div><h5>Get financial advice&nbsp;<br></h5><div>Speak to an independent financial adviser for guidance. Liverpool Victoria (LV) has been chosen as the official partner to give RPS members access to financial advice. LV can be contacted on 0800 023 4187. This service is authorised and regulated by the Financial Conduct Authority.&nbsp;</div><div>&nbsp;</div><div>You can also visit <a href="https://www.moneyhelper.org.uk/en" target="_blank" data-sf-ec-immutable="">MoneyHelper</a> for free, impartial advice backed by the government.&nbsp;</div><div><br></div>

<div>&nbsp;</div><div><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">Your 20s can bring many changes – starting your career, getting on the property ladder and becoming financially independent. You may also have competing priorities for your money.</span></div><div>&nbsp;</div><h3>Time is on your side</h3><div><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit"></span></div><div>Saving for retirement may not feel urgent, especially if you are repaying debt or have other financial priorities. However, if you have a defined contribution (DC) pension – for example you’re a member of the<a href="/iwdc-members/Im-still-working/how-the-IWDC-section-works"> Industry-Wide Defined Contribution (IWDC) Section</a> or you pay <a href="/defined-benefit-members/saving-more-BRASS-AVC-Extra">Additional Voluntary Contributions (AVCs)</a> – starting earlier gives pension savings more time to grow.</div><div><br></div><div>You can start with a small sum you are comfortable giving up in the beginning and then build it up in the future. Or you might decide to go all in and to save as much as you can towards your pension while you’re young and don’t have a family to care for.&nbsp;</div><div><br></div><div>Starting early gives your pension savings more time to grow before you retire.</div><div><br></div><div>It’s worth getting an idea of how much income you might need to enjoy the lifestyle you hope for with our <a href="/knowledge-hub/help-and-support/retirement-budgeting-calculator">Retirement Budgeting Calculator</a>.&nbsp;</div><div>&nbsp;<span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">&nbsp;</span></div><h3>How compound growth works</h3><div>Have you heard of compounding? It’s a good one to know when it comes to pensions. It’s a term used to describe the process of achieving growth not just on the money you’ve paid in or invested initially but on the growth of it as well.</div><div><br></div><div><p>The longer we keep our money invested, the more time it has to grow. However, investment values can fall as well as rise.</p></div><div>Here’s a simple example of compounding:</div><div><br></div><p>If you invest £1,000 into your DC pension pot and it grows by 5% in the first year, it will be worth £1,050. If it grows by another 5% in the second year, the growth would be £52.50, bringing the total to £1,102.50.</p><div>Starting saving earlier can be more valuable than saving larger amounts later in life.</div><div><p><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">&nbsp;</span></p><table style="border-style: solid; border-color: rgba(0, 0, 0, 1); margin-right: auto"><tbody><tr style="height: 20%"><td style="width: 20%; border-style: solid; border-color: rgba(5, 5, 5, 1)"><strong>Age started</strong></td><td style="width: 20%; border-style: solid; border-color: rgba(5, 5, 5, 1)"><strong>Monthly saving</strong></td><td style="width: 20%; border-style: solid; border-color: rgba(5, 5, 5, 1)"><strong>Years saved</strong></td><td style="width: 20%; border-style: solid; border-color: rgba(5, 5, 5, 1)"><strong>Total paid in</strong></td><td style="width: 20%; border-style: solid; border-color: rgba(5, 5, 5, 1)"><strong>Pension pot at 65 with 5% annual growth</strong></td></tr><tr style="height: 20%"><td style="width: 20%; border-style: solid; border-color: rgba(5, 5, 5, 1)"><strong>25</strong></td><td style="width: 20%; border-style: solid; border-color: rgba(5, 5, 5, 1)">£50</td><td style="width: 20%; border-style: solid; border-color: rgba(5, 5, 5, 1)">40</td><td style="width: 20%; border-style: solid; border-color: rgba(5, 5, 5, 1)">£24,000</td><td style="width: 20%; border-style: solid; border-color: rgba(5, 5, 5, 1)">£76,300</td></tr><tr style="height: 20%"><td style="width: 20%; border-style: solid; border-color: rgba(5, 5, 5, 1)"><strong>35</strong></td><td style="width: 20%; border-style: solid; border-color: rgba(5, 5, 5, 1)">£50</td><td style="width: 20%; border-style: solid; border-color: rgba(5, 5, 5, 1)">30</td><td style="width: 20%; border-style: solid; border-color: rgba(5, 5, 5, 1)">£18,000</td><td style="width: 20%; border-style: solid; border-color: rgba(5, 5, 5, 1)">£41,600</td></tr><tr style="height: 20%"><td style="width: 20%; border-style: solid; border-color: rgba(5, 5, 5, 1)"><strong>45</strong></td><td style="width: 20%; border-style: solid; border-color: rgba(5, 5, 5, 1)">£100</td><td style="width: 20%; border-style: solid; border-color: rgba(5, 5, 5, 1)">20</td><td style="width: 20%; border-style: solid; border-color: rgba(5, 5, 5, 1)">£24,000</td><td style="width: 20%; border-style: solid; border-color: rgba(5, 5, 5, 1)">£41,100</td></tr><tr style="height: 20%"><td style="width: 20%; border-style: solid; border-color: rgba(5, 5, 5, 1)"><strong>55</strong></td><td style="width: 20%; border-style: solid; border-color: rgba(5, 5, 5, 1)">£150</td><td style="width: 20%; border-style: solid; border-color: rgba(5, 5, 5, 1)">10</td><td style="width: 20%; border-style: solid; border-color: rgba(5, 5, 5, 1)">£18,000</td><td style="width: 20%; border-style: solid; border-color: rgba(5, 5, 5, 1)">£23,300</td></tr></tbody></table><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"><em>*This is an illustrative example that assumes a fixed rate of 5% annual growth. Investment returns are not guaranteed, and values can go down as well as up.</em></span></p></div><div>In this example, someone saving £50 a month from age 25 could have around £76,300 at age 65. Someone starting at 45 and saving £100 a month could have around £41,100. Both would contribute £24,000, but the earlier saver’s money would have 20 more years to grow.</div><div><br></div><div>The lesson? When it comes to long-term saving, time can be just as important as the amount you save. Even small contributions made early can make a significant difference to your retirement savings over the long term. And this is why Einstein dubbed compounding interest the eighth wonder of the world!</div><div><br></div><h3>How your workplace pension helps you save</h3><div>A workplace pension can include contributions from your employer and tax relief from the government.</div><div><br></div><div><h4>Your employer also contributes</h4><p><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">You and your employer pay contributions into the Railways Pension Scheme. Your employer’s contributions help increase the amount saved towards your retirement.</span></p></div><div><br></div><h4>Tax relief on your workplace pension</h4><div><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">Tax relief means some of the money that would have gone to the government as tax goes into your pension instead.</span></div><div>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%.</div><div><br></div><div>So, if you’re a basic-rate taxpayer and want to put in £100, all that money will end up in your pension as you won’t get charged any tax on it. Otherwise, you would’ve been left with £80 as tax would’ve taken £20 off you.</div><div><br></div><div><a href="https://www.railwayspensions.co.uk/knowledge-hub/news-and-views/blogs/rps-blog/2023/04/26/tax-relief-and-tax-allowances-explained" data-sf-ec-immutable="">Find out more about tax relief and allowances.</a></div><div><br></div><h4>Saving extra towards your pension is tax efficient</h4><p>As a member of the Railways Pension Scheme, you can boost your pension savings tax-free by paying in AVCs, which are DC savings so they can benefit from the compound interest explained above. AVCs are a great way to save extra towards your pension either by making regular or one-off payments into it. So, if you get a bonus or a monetary gift and want to spend it wisely, why not consider paying it towards your pension? And you’d get tax relief from the government too.&nbsp;</p><div>This could be a great way to make the most of your current pension Annual Allowance before the tax year comes to end in April each year. Your pension savings may count towards your Annual Allowance. This is the limit on pension savings that can benefit from tax relief each tax year.</div><div><br></div><div><a data-sf-ec-immutable="" href="https://www.railwayspensions.co.uk/defined-benefit-members/saving-more-BRASS-AVC-Extra">Find out more about BRASS, AVC Extra and other ways to save.</a></div><div>&nbsp;</div><h3>Keep track of your money</h3><div><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">Keeping track of your income and spending can help you understand what you can afford to save.</span></div><div><p>You can use a budgeting app, spreadsheet or another tool to record your income and spending. This may help you identify changes that suit your circumstances.</p></div><div>And don’t forget to <a data-sf-ec-immutable="" href="https://www.railwayspensions.co.uk/register">register for your myRPS account</a> to help manage your pension any time, from anywhere.&nbsp;</div><div>&nbsp;</div>

<h5>This article is for active members of the defined benefit (DB) and Industry-Wide Defined Contribution (IWDC) sections of the Railways Pension Scheme (RPS).&nbsp;&nbsp;</h5><div><p>If you've changed employers within the railway industry, you may have pension benefits in more than one section of the Railways Pension Scheme (RPS).&nbsp;</p></div><div><p>A question that comes up regularly among members is <a href="https://www.railwayspensions.co.uk/knowledge-hub/news-and-views/blogs/rps-blog/2026/01/28/transferring-benefits-from-one-section-of-the-rps-to-another" data-sf-ec-immutable="">whether you can transfer benefits</a> from an older membership into your current one. This is called an inter-Scheme transfer, and it can make your pension easier to manage in the long run.&nbsp;</p></div><div><p>The answer isn't the same for everyone. Before deciding whether to explore a transfer, it's important to understand how they work and what they could mean for your pension.</p></div><div><p>To help you make an informed decision, let’s separate fact from fiction with five common misconceptions about inter-Scheme transfers.</p></div><div><em>And remember, before making any decisions about your pension, consider <a href="https://www.railwayspensions.co.uk/pension-essentials/guidance-advice" data-sf-ec-immutable="">taking independent financial advice</a>. Everyone’s personal circumstances are different, and a financial adviser can help you understand your options.&nbsp;</em></div><div><br></div><h3>Myth 1: My pensions will automatically be combined</h3><div><p>Not always.</p></div><div><p>If you move between employers or sections in the RPS, your pension benefits won't automatically move with you.</p></div><div><p>If you've left a job where you were paying into the RPS, the benefits you've built up stay in that employer’s section of the Scheme. This is called a preserved membership. You're no longer paying into it, but you keep the pension benefits you've earned.</p><p><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">If you then join another employer that participates in the RPS, you start a new membership. This means you’re an active member currently paying into the Scheme and building up pension benefits.</span></p><p><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit"></span><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">Even though both memberships are in the RPS, they won't automatically be combined. In this situation, a transfer will only happen if you request one, and if you’re eligible.</span></p><p><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit"></span><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">If you're interested in transferring benefits from a preserved membership into an active membership, you'll need to visit the <a href="https://www.railwayspensions.co.uk/pension-essentials/transferring-my-pension" data-sf-ec-immutable="">request a transfer page</a>.</span></p><p><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit"></span><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">In some cases, your pension benefits may move to your new RPS membership automatically. If this happens, we'll tell you what it means and explain your options. You'll then have six months to decide whether you want the transfer to go ahead.</span></p></div><div><br></div><h3>Myth 2: All RPS memberships can be transferred</h3><div><p>Not necessarily.</p><p><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">The rules on transfers vary between sections of the RPS, so what's possible for one member may not be possible for another. Not all memberships or periods of service are eligible for transfer.</span></p><p><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit"></span><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">If you’re considering a transfer, check your Member Guide first. It explains the rules for your section and what transfer options may be available to you. You can find it in the ‘My Library’ section of your <a href="https://www.railwayspensions.co.uk/login" data-sf-ec-immutable="">myRPS account</a>.</span></p></div><div><br></div><div><h3>Myth 3: If I transfer, all my pension benefits will look exactly the same</h3><p><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">Not necessarily.</span></p><p><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit"></span><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">One reason transfer quotes can seem confusing is that not all pension benefits are built up in the same way.</span></p><p><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit"></span><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">That’s because some RPS sections provide a <a href="https://www.railwayspensions.co.uk/defined-benefit-members/im-still-working/new-to-the-scheme" data-sf-ec-immutable="">defined benefit (DB) pension</a>, while others provide defined contribution (DC) benefits, such as the <a href="https://www.railwayspensions.co.uk/iwdc-members/Im-still-working/new-to-the-scheme" data-sf-ec-immutable="">Industry-Wide Defined Contribution (IWDC) Section</a> and <a href="https://www.railwayspensions.co.uk/defined-benefit-members/saving-more-BRASS-AVC-Extra" data-sf-ec-immutable="">Additional Voluntary Contributions (AVCs)</a>.</span></p><p><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit"></span><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">A DB pension aims to pay you a regular income based on your salary and how long you’ve been a member of the scheme, rather than the amount of money you’ve contributed to the pension.</span></p><p><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit"></span><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">A DC pension works differently. Instead of building up pensionable service, you build up a pension pot through personal and employer contributions, and investment growth.</span></p><p><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit"></span><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">This means the information shown for different memberships may not be presented in the same way. So, it’s important to understand what type of pension benefits you have.&nbsp;</span></p><p><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit"></span><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">The transfer terms could also differ depending on when the transfer takes place or whether any of your benefits have protected status.</span></p><p><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit"></span><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">If anything in your quote or Member Guide is unclear, speak to us before making a decision.</span></p></div><div><br></div><div><h3>Myth 4: If a transfer is available, it’s probably the best option</h3><p><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">Not quite.&nbsp;</span></p><p><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit"></span><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">When you transfer benefits from an old RPS membership into a current one, it's important to think about more than just the transfer value.</span></p><p><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit"></span><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">Different RPS memberships can have different rules and benefits. Before deciding whether to transfer, make sure you understand what benefits come with both memberships and whether these would change after a transfer.</span></p><p><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit"></span><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">For example, you may want to consider:</span></p></div><ul><li><a href="https://www.railwayspensions.co.uk/defined-benefit-members/Im-planning-to-take-my-pension/when-to-retire" data-sf-ec-immutable="">what age you can take your pension from</a></li><li>whether either membership has a <a href="https://www.railwayspensions.co.uk/knowledge-hub/news-and-views/blogs/rps-blog/2026/01/26/taking-your-benefits-with-a-protected-pension-age-(ppa)" data-sf-ec-immutable="">Protected Pension Age (PPA)</a></li><li>what <a href="https://www.railwayspensions.co.uk/pension-essentials/nominations" data-sf-ec-immutable="">benefits could be paid to your loved ones if you die</a></li><li><p>any other protections or special features that apply to your membership</p></li></ul><p><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit; color: inherit; font-family: inherit">If you have a defined benefit (DB) pension, there can be extra things to think about. For example, if you're transferring DB benefits worth more than £30,000 to a DC pension, the law says you must take advice from a regulated financial adviser before the transfer can go ahead.</span></p><p><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit; color: inherit; font-family: inherit"></span><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">And even if you do not have to take financial advice, it may still be worth speaking to a financial adviser. They can help you understand your options and what a transfer could mean for your pension.</span></p><div><br></div><div><h3>Myth 5: There's no point getting a transfer quote unless I've already decided</h3><p><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">Requesting a quote doesn't mean you have to transfer your benefits. It’s there to help you understand your options before you decide whether to go ahead.</span></p><p><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit"></span><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">You can request one inter-Scheme transfer quote free of charge within a 12-month period. There's a charge for any additional quotes you ask for within the same 12 months. Find out more on the <a href="https://www.railwayspensions.co.uk/pension-essentials/transferring-my-pension" data-sf-ec-immutable="">transferring my pension page</a>.</span></p></div><div><br></div><div><h4>Things to think about before making a decision</h4></div><div><p>Every member's circumstances are different, so there's no one-size-fits-all answer when it comes to transferring pension benefits.</p><p><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">Before deciding, ask yourself:</span></p></div><ul><li>Have I read the information in my Member Guide?</li><li>Do I understand the benefits attached to both memberships?</li><li>Are there any benefits or protections I want to keep? And what might change after a transfer?</li><li>Do I understand what my transfer quote is showing me?</li><li>Would I benefit from speaking to a financial adviser?</li></ul><div><p>Whenever you're thinking about making a big decision about your pension, it's a good idea to get <a href="https://www.railwayspensions.co.uk/pension-essentials/guidance-advice" data-sf-ec-immutable="">financial advice first</a>.&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">You can find a list of independent financial advisers at <a href="http://unbiased.co.uk/" target="_blank" data-sf-ec-immutable="">unbiased.co.uk</a>, or use our preferred partner <a href="https://www.lv.com/pensions-retirement" target="_blank" data-sf-ec-immutable="">Liverpool Victoria (LV)</a>, who have a good knowledge of the Scheme.</span></p></div><div><p><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">You can also visit <a href="https://www.moneyhelper.org.uk/en" target="_blank" data-sf-ec-immutable="">MoneyHelper</a> for free, impartial guidance backed by the government.</span></p></div><div><br></div>

<h5><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">What is Pension Credit?</span></h5><div><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">Pension Credit is a means-tested benefit from the government to help people over State Pension age who are living on a low income. It can top up your weekly income and help with day-to-day costs.</span></div><div><br></div><div>Even if you’re still working, you may be able to claim Pension Credit.&nbsp;</div><div><br></div><div>If you only get a small amount of Pension Credit, you may be able to get other support to help with day-to-day living costs. This can include Council Tax, housing costs, NHS services, and heating bills. If you’re over 75, you could be entitled to a free TV license.</div><div><br></div><div>Many people who could claim Pension Credit do not realise they are entitled to it. That means there’s around 910,000 pensioner households missing out on Pension Credit, with the average award worth £4,300 a year.</div><div><br></div><p><strong>Myth-busting: Pension Credit isn't a pension</strong><br>Pension Credit is a government benefit. It isn't part of your workplace pension or State Pension. You don't have to have paid into a pension to check whether you can get Pension Credit.</p><div><br></div><h5>How does Pension Credit work?</h5><div><p>Pension Credit comes in two parts.</p></div><div><strong>Guarantee Credit</strong></div><div><br></div><div>Guarantee Credit helps people whose income is low. It tops up your weekly income to a minimum amount set by the government. This is the main part of Pension Credit and is what most people mean when they talk about claiming Pension Credit.</div><div><br></div><div>From April 2026, it can top your income up to*:</div><div>• £238.00 a week if you're single</div><div>• £363.25 a week if you're part of a couple</div><div><br></div><div><strong>Savings Credit</strong></div><div><br></div><div>Savings Credit is an extra payment for some older pensioners. It gives you up to £17.96 a week if you're single, and up to £20.10 if you're part of a couple*.</div><div><br></div><div>It’s designed for those who saved some money for when they stopped working, such as through a workplace pension, personal pension or other savings. You can only get Savings Credit if you reached State Pension age before 6 April 2016.</div><div><br></div><h5>Do I need to understand the difference?</h5><div>No. When you apply for Pension Credit, the government will work out whether you're entitled to Guarantee Credit, Savings Credit, or both.</div><div><br></div><h5>Who is eligible for Pension Credit?</h5><ul><li>To claim Pension Credit, you must:</li><li>Have reached State Pension age</li><li>Live in England, Scotland or Wales</li><li>Have a weekly income below £238 if you're single, or £363.25 if you're in a couple. This can be slightly higher if you claim a disability-related benefit or have caring responsibilities</li><li>If you’re in a couple, you must both have reached State Pension age</li></ul><div>Your State Pension age will depend on when you were born. <a href="https://www.gov.uk/state-pension-age" target="_blank" data-sf-ec-immutable="">Use the Gov.uk website to check your State Pension age.</a></div><div><br></div><div>To claim Savings Credit, you must:</div><ul><li>Have reached 65 if you're a man, and 63 if you're a woman, before 6 April 2016 – the State Pension ages back then (for new claims only)</li><li>Have a weekly income above £208.07 if you're single, or £329.75 if you're in a couple</li></ul><div><br></div><h5>How to apply for Pension Credit</h5><div><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">If you want to find out how much Pension Credit you could get before you apply, you can use the <a href="https://www.gov.uk/pension-credit-calculator" target="_blank" data-sf-ec-immutable="">Pension Credit Calculator</a>.</span></div><div><br></div><div>Then visit Gov.uk to <a href="https://www.gov.uk/pension-credit/how-to-claim" target="_blank" data-sf-ec-immutable="">apply for Pension Credit</a>.</div><div><br></div><div>For your application for Pension Credit, the government will consider your income. If you have a partner, their income will also be included.&nbsp;</div><div><br></div><div>Income includes:</div><div>• Any workplace or personal pensions you have, including pensions you have not claimed yet</div><div>• Your State Pension</div><div>• Your earnings from employment or self-employment</div><div>• Most social security benefits</div><div><br></div><div>The government will also consider your savings and investments.</div><div><br></div><div>Using this information, the government will then calculate the amount of Pension Credit you will be able to get.</div><div><br></div><div>You can apply for Pension Credit up to four months before you reach State Pension age, and any time after. It’s worth bearing in mind that if you are eligible for Pension Credit it can only be backdated by up to three months.&nbsp;</div><div><br></div><div>For more guidance on how to apply, <a href="https://www.gov.uk/pension-credit/eligibility" target="_blank" data-sf-ec-immutable="">visit Gov.uk</a>.&nbsp;</div><div><br></div><div><em>*Figures are correct as of August 2026 but may change. To check the latest figures, visit <a href="https://www.gov.uk/pension-credit/eligibility" target="_blank" data-sf-ec-immutable="">Pension Credit: Eligibility - GOV.UK (www.gov.uk)</a> or </em><a href="https://www.gov.uk/pension-credit/what-youll-get" target="_blank"><em>Pension Credit: What you'll get - GOV.UK (www.gov.uk)</em></a>.</div><div><br></div>

<div>In our previous blogs, we've explained <a data-sf-ec-immutable="" href="https://www.railwayspensions.co.uk/knowledge-hub/news-and-views/blog/rps-blog/2026/04/01/railpen---investing-your-pension-for-the-future">how your pension is supported by investments</a> and <a data-sf-ec-immutable="" href="https://www.railwayspensions.co.uk/knowledge-hub/news-and-views/blog/rps-blog/2026/07/22/managing-risk-and-uncertainty-when-we-invest-your-pension">how Railpen manages long-term risks and uncertainty</a>.</div><div><br></div><div>But looking after members' pensions on behalf of the Trustee is about more than choosing investments well.&nbsp;</div><div><br></div><div>Railpen’s position as a long-term investor means it can work with the companies it invests in in several ways. This includes using its voting rights and working alongside other investors to help manage risks and support better financial outcomes for members over time..</div><div><br></div><h5>Looking after investments over the long term&nbsp;</h5><div>Investing doesn't stop once an investment has been made.</div><div><br></div><div>Railpen regularly reviews its investments and keeps an eye on issues that could affect their long-term value. This includes understanding how companies are run, how they manage important risks, how they respond to changes in the law, and whether they are making decisions that support long-term financial performance.</div><div><br></div><div>This activity is often known as stewardship. In simple terms, it means taking an active interest in the companies Railpen invests in, rather than simply holding investments and leaving them alone.</div><div><br></div><h5>Using our influence as an investor&nbsp;</h5><div>As part of this approach, Railpen works closely with the companies it invests in.</div><div><br></div><div>This can include talking to companies about how they manage risks, plan for the future and respond to issues that could affect their long-term performance.</div><div><br></div><div>The aim is not for Railpen to run the companies it invests in, but to encourage good decision making that supports long-term value for investors, including pension schemes like ours.</div><div><br></div><div>Owning shares in a company often also gives investors the chance to vote on important decisions.</div><div><br></div><div>Railpen uses these voting rights, where appropriate, to help hold companies to account and encourage good decision making. This helps protect members’ long-term interests.</div><div><br></div><h5>Why being a well-run company matters&nbsp;</h5><div>Well-run companies are often better placed to manage risks, adapt to change and grow over the long term. This can affect how investments perform over time.</div><div><br></div><div>That is why Railpen pays close attention to how companies are governed, including how decisions are made and how leaders are held accountable for those decisions.</div><div><br></div><div>Encouraging good standards across the companies Railpen invests in can help protect individual investments and support more stable markets over the long term.</div><div><br></div><h5>Working with others on bigger issues</h5><div>Some risks cannot be addressed by a single investor acting alone. Issues such as climate change and norms and rules about how companies are run often affect many companies and markets at the same time. In these cases, investors can often achieve more by working together.</div><div><br></div><div>For example, Railpen chairs the UK-focused <a data-sf-ec-immutable="" target="_blank" href="https://www.railpen.com/insights/our-thinking/2025/governance-for-growth-investor-campaign-ggic/">Governance for Growth Investor Campaign (GGIC)</a>, which brings together UK pension schemes to support good corporate governance, long-term growth and the interests of pension savers.</div><div><br></div><div>Railpen also co-founded and chairs the global <a data-sf-ec-immutable="" target="_blank" href="https://www.icevequalvotes.org/">Investor Coalition for Equal Votes (ICEV)</a>, which supports the idea that investors' voting rights should fairly reflect the shares they own. This helps to make sure company leaders remain accountable to all of their investors.</div><div><br></div><div>By working with other investors and organisations in this way, Railpen can have a stronger voice on issues that may affect members’ pensions over the long term.&nbsp;</div><div><br></div><h5>Considering long-term risks and opportunities</h5><div>When making investment decisions and monitoring investments, Railpen also considers a range of wider issues that could affect long-term outcomes.</div><div><br></div><div>These can include environmental issues, changes in law and regulation, how companies treat their workforce and how companies are run. These are sometimes called environmental, social and governance (ESG) factors. Railpen considers them where evidence shows they can affect the long-term risks and opportunities linked to an investment</div><div><br></div><div>As we explained in <a data-sf-ec-immutable="" href="https://www.railwayspensions.co.uk/knowledge-hub/news-and-views/blog/rps-blog/2026/07/22/managing-risk-and-uncertainty-when-we-invest-your-pension">our previous blog</a>, climate change is one example of a long-term risk that can affect investments, businesses, economies and livelihoods around the world.</div><div><br></div><h5>Where to find out more&nbsp;</h5><div>Every year, Railpen publishes a Stewardship Report, which explains more about how it works with companies, uses its voting rights and works with others to support long-term outcomes for members.</div><div><br></div><div>Later this summer, we will publish a shorter, member-friendly version called the Sustainable Ownership Member Review.&nbsp;</div><div><br></div><div>You can also:</div><ul><li>read our earlier blog: <a data-sf-ec-immutable="" href="https://www.railwayspensions.co.uk/knowledge-hub/news-and-views/blog/rps-blog/2026/04/01/railpen---investing-your-pension-for-the-future">Railpen - investing your pension for the future</a></li><li>read our blog on <a data-sf-ec-immutable="" href="https://www.railwayspensions.co.uk/knowledge-hub/news-and-views/blog/rps-blog/2026/07/22/managing-risk-and-uncertainty-when-we-invest-your-pension">managing risks and uncertainty when we invest your pension</a></li><li>visit the <a href="/knowledge-hub/investments">Investments section of the website</a> to learn more about Railpen's approach to investing<span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit"></span></li><li><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">visit the <a href="/knowledge-hub/investments/sustainable-ownership">Sustainable Ownership page</a> to discover more about sustainable ownership and ESG issues</span></li><li>check out our other &nbsp;</li></ul>

<div><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">Now you’re past your 20s, you’re probably more settled and have an idea of how you want to live, what matters most to you and what your priorities are for the foreseeable future.</span></div><div><br></div><div>In your 30s, you may have changed jobs and moved up the career ladder. You could also have a family to care for, childcare costs to pay, holidays to fund and many more financial demands to meet. Understandably, your money may feel stretched, and you may start looking for ways to cut back on your spending. Although a temporary pause on your pension payments may seem like a good way to give your bank account a breather, it’s important to think carefully before you make that decision.</div><div><br></div><div>Here’s why staying focused on your retirement goal and keeping up your saving journey, even during times of financial strain, could be one of the best things you can do for your future and your loved ones.</div><div>&nbsp;</div><h5>You’re not saving alone</h5><div>One of the most valuable benefits of saving for the future with the Railways Pension Scheme (RPS) is the fact that you’re not saving alone. Your employer puts money in too. If you’re a Defined Benefit member, your employer will pay in at least 60% of the money you put in (normally 1.5 times the contribution you make). For example, if you earn £25,000 a year and you pay in £3,000 towards your pension, your employer will top that amount up by £4,500 for free.</div><div><br></div><div>What’s more, you also get support from the government for saving into a workplace pension. This support comes in the form of tax relief on your pension contributions. The money you pay in is taken from your salary before you pay any tax on it, which helps you save more towards your pension.</div><div><br></div><div>So, for a basic-rate taxpayer, every £100 paid into a pension means the full £100 is invested for your future. If that money had been paid as salary instead, you would usually have received only £80 after tax. By saving into your pension, the £20 that would otherwise have been paid in tax is invested for you instead.</div><div><br></div><div>That’s why it’s important you think carefully before making any decisions about reducing or stopping your pension payments, as it could mean missing out on valuable money from your employer and tax relief.</div><div><br></div><div><a data-sf-ec-immutable="" href="https://www.railwayspensions.co.uk/knowledge-hub/news-and-views/blog/rps-blog/2023/04/26/tax-relief-and-tax-allowances-explained">Find out more about tax-free relief here.</a></div><div>&nbsp;</div><h5>Will your State Pension be enough to give you a good life in retirement?</h5><div>As much as we’d like to think of retirement as the golden time of our lives when for once we don’t have to worry about work and have the freedom to travel, take up new hobbies and enjoy life, we know that in reality the lifestyle we have in later life will largely depend on what income or savings we have.&nbsp;</div><div><br></div><div>If you are planning to rely heavily on the State Pension, will it give you the lifestyle you want at retirement? It’s a great supplement to your retirement income, but the current State Pension is around £12,500 a year. Will that be enough? For comparison, someone working 40 hours a week on the National Living Wage would earn around £26,400 a year, a difference of almost £14,000 a year. And, under current legislation, most people will not be able to claim their State Pension until their late 60s.</div><div><br></div><div>If we save towards our future while we are in work, we are much more likely to have the retirement we hope for.</div><div>&nbsp;</div><h5>Don’t interrupt the art of compounding</h5><div>Your pension is invested to give you an income when your working days are over. The longer you keep it invested, the more chance it has to grow. Sometimes, it may benefit not only from investment growth, but also from further growth on that growth. This process is known as compounding, and we explain it in more detail our <a href="/knowledge-hub/news-and-views/blogs/rps-blog/2026/10/19/pension-planning-your-20s---making-the-most-of-a-pension-plan-when-you're-young">‘Pension planning in your 20s’ article</a>.</div><div><br></div><div>Interrupting the investment process by stopping your pension payments would throw a massive spanner in the works. This is because it would affect the compounding that happens while you’re regularly investing into your pension. This on its turn means that you could potentially miss out on significant sums of money in the long run – after 20, 30 years.</div><div><br></div><div>The compounding effect only applies to members who have some or all of their pension money invested such as members of the Industry-Wide Defined Contribution (IWDC) section and members who pay in Additional Voluntary Contributions (AVCs) such as BRASS. Compounding has no impact on Defined Benefit (DB) only members but if you stop paying into your DB pension that will impact what you have to live on when your working days are over. What is more, you may not be able to re-join the DB section in the future.</div><div>&nbsp;</div><h5>Once you’ve stopped paying in, you may not start again</h5><div>Humans are creatures of habit and routine. It can be hard to go back to saving after you’ve had a flavour of having that extra bit of money in your pocket every month.</div><div><br></div><div>And as pointed above, if you leave the RPS, you may not be able to re-join again.</div><div><br></div><div>Think of your pension as one of your last options not your first when looking at where you can cut costs. To help our members think about their broader financial wellness we have introduced a simple planning tool called MoneyFit which you can access when you log into your <a data-sf-ec-immutable="" href="https://member.railwayspensions.co.uk/my-rps">myRPS account</a>.</div><div><br></div><div><a data-sf-ec-immutable="" href="https://www.moneyfit.co.uk/app/railpen">MoneyFit</a> is designed to give you some simple hints and tips to help you manage your money. It’s totally anonymous and takes around 5-10 minutes to use.</div><div>&nbsp;</div><h5>Have a plan! If you don’t have one, make one!</h5><div>By failing to prepare, you are preparing to fail as the saying goes. The same goes for retirement planning.</div><div><br></div><div>Even if you’re left with no other option but to cut back on your pension saving, this may not mean leaving the Scheme completely but pausing your Additional Voluntary Contributions (AVCs) for a little while.</div><div><br></div><div>So as an example, you may choose to pause your £50 monthly BRASS contributions for a while. This might be a good option for you if it means you can stay in the Scheme and can continue to save towards your pension. Or if you feel you have to leave pension saving behind for the time being, it’s always worth getting back to it when you’re more financially stable and can afford to save for later life.</div><div><br></div><div>The important thing is that you plan ahead, understand what you might need in retirement and ensure you are saving enough, without putting your broader financial wellness at risk.</div><div><br></div><div>Leaving the Scheme rather than pausing any extra payments you’re currently making could significantly impact your lifestyle in the future. It means you’ll have less to live on when your working days are over. For some, this also means they won’t be able to afford to retire when they want to and will be pushed to continue to work for longer.</div><div><br></div><div>To get an idea of how much income you might need to enjoy the lifestyle you hope for, give our <a data-sf-ec-immutable="" href="https://www.railwayspensions.co.uk/knowledge-hub/help-and-support/retirement-budgeting-calculator">Retirement Budgeting Calculator</a> a go. It’s a quick and easy tool to help you estimate if you’re saving enough for later life.</div><div><br></div>

<div></div><div><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">Your 40s can be a good time to review your pension savings. You may have more financial commitments than before, but you may also have more earning power and a clearer idea of what you want later life to look like.</span></div><div><br></div><div>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.</div><div><br></div><div>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.</div><div>&nbsp;</div><h4>Prioritising saving for later life</h4><div>Recent research by Standard Life*, which sampled UK adults aged 18 to 80, highlights a clear gap between concern and action. While 53% of UK adults worry they aren’t saving enough for retirement, only 15% say it’s a top financial priority. At the same time, around one in three people haven’t worked out how much they’ll need. Without a clear plan, it can be difficult to turn expectations into reality. Taking a few minutes now to check your pension and what you’re on track to receive can help you feel more confident about your future.</div><div><br></div><div>Now you’ve got a few financial milestones behind you 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?&nbsp;</div><div><br></div><div>You can borrow for many things, but not for retirement. If you can afford to invest more in your pension, doing so now could help you build more financial security for later life.</div><div>&nbsp;</div><div>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.</div><div><br></div><div>Read more <a href="https://www.railwayspensions.co.uk/pension-essentials/saving-more" data-sf-ec-immutable="">about AVCs</a>.</div><div>&nbsp;</div><h4>Compounding is still a key factor</h4><div><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">Compounding is when investment growth can generate further growth over time, not just on the amount you initially paid in. It can make a real difference when saving for later life because the longer your money is invested, the more time it has to grow.</span></div><div><br></div><div>If you’ve started saving for later life in your 20s, you may have built up some sizeable pension savings by now. Thanks to compounding, those savings may continue to benefit from further growth, not only from the money you keep paying in but from the compounding effect on that money too.</div><div><br></div><div><a href="/knowledge-hub/news-and-views/blogs/rps-blog/2026/10/19/pension-planning-your-20s---making-the-most-of-a-pension-plan-when-you're-young">Read more about compounding in our previous blogs in the pension planning series.</a></div><div>&nbsp;</div><h4>Have you accumulated a few different pension pots over the years?</h4><div>You may have been saving for retirement for a couple of decades now, and it’s possible you’ve built up more than one pension pot along the way. Your 40s can be a good point in your savings journey to take stock of what you have.</div><div><br></div><div>If you think you've lost track of a pension, you may want to turn to the <a href="https://www.pensiontracingservice.com/" target="_blank" data-sf-ec-immutable="">Pension Tracing Service</a> for help. It's a free, impartial service to help find your lost pensions and then offer guidance on what to do with them.</div><div><br></div><div>You could start a pension tracker to see at a glance how your different pots are performing. If you’re unsure what to do next, you could seek independent financial advice. Go to <a href="https://www.unbiased.co.uk/" target="_blank" data-sf-ec-immutable="">unbiased.co.uk</a> to find an independent adviser from a trusted source.&nbsp;</div><div><br></div><div>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.</div><div><br></div><div>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 it with them.</div><div><br></div><div>You can find more information on transferring in your Member Guide, which is available in ‘My Library’ when you log into your <a href="https://www.railwayspensions.co.uk/my-rps" data-sf-ec-immutable="">myRPS account</a>.</div><div><br></div><div>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.</div><div><br></div><div><br></div><div><em>*<a href="https://www.standardlifeplc.com/centre-for-the-future-of-retirement/research-reports/article-page/retirement-voice-2025" target="_blank" data-sf-ec-immutable="">Retirement Voice 2025</a>, Exploring how retirement attitudes and experiences are changing by Standard Life.&nbsp;</em></div><div><br></div>

<div>By the time you reach your 50s you may have a pretty good idea of what you want later life to look like. Retirement probably doesn’t feel like a distant concept anymore, and you may be starting to give it more thought.&nbsp;</div><div><br></div><div>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.</div><div><br></div><div>Whatever your situation, your 50s is the ideal time to up your saving game and make the most of the opportunities available to you. Here are a few ideas to help you enhance your pension saving journey and make sure your retirement savings are on track to support the lifestyle you hope for when you stop work.</div><div>&nbsp;</div><h4>Define your retirement goals</h4><div>If you haven’t yet given later life a thought, now is a good time to start. How do you imagine your lifestyle? You’d probably want to enjoy some treats now and then, like a holiday abroad, meals out&nbsp; &nbsp;taking up new hobbies. You may also need to think about whether you’ll have any caring responsibilities or want to support a family member financially.</div><div><br></div><div>Crystallising your retirement goals while you still have a few years to save may help you fund the lifestyle you want when the time comes.</div><div><br></div><div><a href="https://www.retirementlivingstandards.org.uk/" target="_blank" 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 could look like at 3 different levels, and what a range of common goods and services would cost at each level. For example, a single person will need approximately £45,400 per year for a comfortable standard of living when they finish work.</div><div><br></div><div>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).</div><div>&nbsp;</div><h4>Consider boosting your savings with AVCs</h4><div><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">You may want to consider paying extra into your pension, if you can. Paying even a little more into your pension savings now could 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.</span></div><div><br></div><div>The <a href="https://www.railwayspensions.co.uk/defined-benefit-members/saving-more-BRASS-AVC-Extra" data-sf-ec-immutable="">main 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).</div><div><br></div><div><a href="https://www.railwayspensions.co.uk/iwdc-members/Im-still-working/saving-more" data-sf-ec-immutable="">Defined contribution (IWDC) members pay AVCs</a> directly into their investment accounts.</div><div><br></div><div>There are many benefits to saving extra with AVCs:</div><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</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)</li></ul><div><br></div><div>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="">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.</div><div><br></div><div>You should also bear in mind that there is an annual pension savings limit that can benefit from tax relief. For most people, this is £60,000 a year or 100% of your taxable earnings, whichever is lower. Read more about this limit below.</div><div><br></div><h4>Are you making the most of your Annual Allowance?</h4><div><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">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.</span></div><div><br></div><div>The Annual Allowance renews at the start of every tax 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 benefit 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 making the most of it where you can. That doesn’t mean paying in the full allowance, but paying in as much as is realistic and affordable for you.</div><div><br></div><div>You may also be able to carry forward any unused allowances from the last three years.</div><div>&nbsp;</div><h4>Your pension savings are invested so compounding is a big plus!</h4><div><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">We’ve covered <a href="/knowledge-hub/news-and-views/blogs/rps-blog/2026/10/19/pension-planning-your-20s---making-the-most-of-a-pension-plan-when-you're-young">compounding in previous articles from the pension planning series</a> but it’s worth highlighting its valuable role in making your money grow, especially as you approach 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.</span></div><div><br></div><div>Compounding is the process of your investments achieving growth not just on the original sum invested but on any growth already achieved. It can be especially powerful if your money has been invested for a while, but even if you start saving for a pension now, it can still help your money grow.</div><div><br></div><div>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.</div><div><br></div><h4>Re-evaluate your attitude to risk</h4><div><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">If you’ve been saving into an IWDC pot or with AVCs for a while, you may want to consider <a href="https://www.railwayspensions.co.uk/iwdc-members/managing-investments/fund-choices" data-sf-ec-immutable="">reviewing your investment fund choices</a> now you’re on&nbsp; the run-up 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.&nbsp;</span></div><div><br></div><div>The value of money invested can go down as well as up, so it’s important to consider whether the savings you’ve built up to date are ‘safer’ being invested in more ‘stable’ funds which have lower risk of losing value over time.</div><div><br></div><h4>Turn to Pension Wise for free guidance</h4><div><a href="https://www.moneyhelper.org.uk/en/pensions-and-retirement/pension-wise" target="_blank" data-sf-ec-immutable="">Pension Wise</a>, a government-backed service helping people to understand the pension options available to them, offers free, impartial guidance for over 50s.&nbsp;</div><div><br></div><div>You can book an hour-long appointment with one of their pensions specialists. They’ll talk you through the options available to you and anything else you may need to keep in mind in the run-up to retirement.</div><div><br></div><h4>Speak to a financial adviser</h4><div><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">You may want to seek expert financial advice if you have little or no experience of managing your pension and wider finances, or if you don’t feel confident in making decisions about them. Go to <a href="https://www.unbiased.co.uk/" target="_blank" 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.</span></div><div>&nbsp;</div><div><br></div><div><em>*Retirement Living Standards – the Standards have been developed by the Pensions 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/" target="_blank" data-sf-ec-immutable="">https://www.retirementlivingstandards.org.uk/</a></em></div><div><br></div><div><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. It may affect you if your income is over £260,000 (previously £240,000) from 6 April 2023.</em></div><div><br></div>

<div><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">The money paid into the Scheme by members and employers does not simply sit in an account. It is pooled together and invested by Railpen, which looks after the railways pension schemes and manages investments on behalf of the Trustee.&nbsp;&nbsp;</span></p><p><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit; color: inherit; font-family: inherit">Because the value of investments can go up and down over time, a large part of Railpen’s approach is focused on managing risk and uncertainty. This supports the Trustee’s aim to pay members’ pensions securely, affordably, and sustainably.&nbsp;&nbsp;</span></p></div><div>If you are new to this topic, you may want to read our earlier blog, <a href="/knowledge-hub/news-and-views/blogs/rps-blog/2026/04/01/railpen---investing-your-pension-for-the-future">Railpen – investing your pension for the future</a>, which explains more about how your pension is invested and why it matters.&nbsp;<span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">&nbsp;</span></div><div><br></div><h4>Investing means managing uncertainty&nbsp;</h4><div>All investments involve some uncertainty. The economy changes, and longer-term issues can affect how companies and markets perform.&nbsp;</div><div><br></div><div>Railpen cannot get rid of this uncertainty completely, but it does work hard to manage key risks and protect members’ pensions over the long term.&nbsp;&nbsp;</div><div><br></div><div>One of the main ways Railpen does this is through <strong>diversification</strong>.&nbsp;&nbsp;</div><div><br></div><div>This means spreading the Scheme’s investments across different asset classes, such as company shares, bonds, and physical assets, like property or infrastructure, as well as different industries and countries, rather than relying too heavily on any one area. This helps reduce the impact if one investment performs less well, because others should help balance this out over time.&nbsp;</div><div><br></div><div>Another way Railpen manages risk is by <strong>taking a long-term view</strong>.&nbsp;&nbsp;</div><div><br></div><div>Pensions are long term by nature. Some of the railway pension schemes’ 350,000 members are already receiving their pension, while others may not retire for many years. This means Railpen can take a long-term view when investing, looking beyond short-term market changes and focussing on the issues that could affect members’ pensions in the future.&nbsp;</div><div><br></div><div>Railpen does this by taking into account a wide range of risks and uncertainties, such as inflation, market changes, and global events, as well as longer-term issues like climate change.&nbsp;</div><div><br></div><h4>Why climate change matters to your pension&nbsp;</h4><div>Climate change is not just an environmental issue. It can also affect the value of investments over time.&nbsp;</div><div><br></div><div>For pension schemes like ours, climate-related risks can affect:&nbsp;</div><div><br></div><ul><li>the companies the Scheme invests in and the value of those investments&nbsp;</li><li>the employers that support the Scheme&nbsp;</li><li>the cost of paying pensions in the future </li></ul><p>Because climate change affects so many parts of the economy, these risks cannot be avoided completely. For example, changes in law, new technologies and the shift to a lower-carbon economy can all affect different industries in different ways. More frequent extreme weather can also affect companies; infrastructure, and the goods and services they rely on.&nbsp;</p><div>This is why the Trustee, supported by Railpen, considers climate-related risks and opportunities as part of its wider approach to investing your pension.&nbsp;</div><div><br></div><div>In practice, for Railpen this means:&nbsp;&nbsp;</div><div><br></div><ul><li>taking climate-related risks into account when deciding where to invest&nbsp;</li><li>working closely with the companies they invest in on how they manage these risks&nbsp;</li><li>choosing not to invest in some areas where the risks are considered too high </li></ul><div>Railpen also looks for suitable investment opportunities linked to the move towards a lower-carbon economy, where these support the needs of the Scheme.&nbsp;</div><div>&nbsp;</div><div>For example, Railpen currently has a 50% stake in AGR Power (AGR), a leading London-based renewable energy and sustainable infrastructure developer. It has also invested more than £500 million in UK energy infrastructure projects since 2019.&nbsp;&nbsp;</div><div><br></div><div>&nbsp;<span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">The latest Taskforce on Climate-Related Financial Disclosures (TCFD) Report explains this in more detail and outlines why managing climate-related risk is an important part of acting in members’ best interests.&nbsp;&nbsp;</span></div><div><br></div><div>&nbsp;<span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">It also shows what progress the railways pension schemes are making towards their climate targets, including halving their carbon footprint by 2030 and being net zero by 2050 or sooner.&nbsp;</span></div><div><br></div><div>&nbsp;<span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">You can read the TCFD report in full <a target="_blank" href="https://cdn-suk-memberportal-preprod-002.azureedge.net/mp-sitefinity-preprod/docs/default-source/tcfd-reports/tcfd-report.pdf?sfvrsn=ef9f0be8_16">here</a> or via the <a href="/knowledge-hub/investments/investment-reports">investment reports page</a>.&nbsp;</span></div><div>&nbsp;</div><h4>Where to find out more about our investments&nbsp;</h4><div>You can:&nbsp;</div><div><br></div><ul><li>read our earlier blog, <a href="/knowledge-hub/news-and-views/blogs/rps-blog/2026/04/01/railpen---investing-your-pension-for-the-future">Railpen – investing your pension for the future</a>, to learn more about how your pension is invested&nbsp;</li><li>visit the <a href="/knowledge-hub/investments">Investments section</a> of the website for more information about Railpen’s approach to investing&nbsp;&nbsp;</li><li>read the <a target="_blank" href="https://cdn-suk-memberportal-preprod-002.azureedge.net/mp-sitefinity-preprod/docs/default-source/tcfd-reports/tcfd-report.pdf?sfvrsn=ef9f0be8_16">latest TCFD report</a> for more detail on how climate-related risks and opportunities are taken into account&nbsp;&nbsp;</li></ul>

<p><strong></strong>Your pension is effectively a safeguard for the future. A way to make sure you have money to spend when you stop work.<span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto"></span></p><p>With that in mind, it’s important you understand what your pension can do for you and how to make the most of it. That’s where a financial adviser might be able to help.<span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto"></span></p><h3><strong>Do I HAVE to get financial advice? </strong></h3><p>There are a limited number of circumstances where getting financial advice is a legal requirement.&nbsp;For example, if the value of your DB benefits is more than £30,000 and you are looking to transfer to a scheme that provides flexible benefits e.g. a Defined Contribution or a Personal Pension Arrangement, then by law you have to get financial advice from an FCA-authorised adviser who is qualified to advise on transfers before the transfer can be made.</p><p>In most cases though, whether or not to get financial advice is entirely your choice. </p><p>Before that, you may find some of the answers you’re looking for in your Member Guide, or in the wide range of informative content available across the member website. </p><p>This includes a number of tools designed help you understand your pension and consider your options, such as:</p><ul><li>The <a href="/knowledge-hub/help-and-support/retirement-budgeting-calculator">Retirement Budgeting Calculator</a>, to help you work out how much income you might need, to enjoy the lifestyle you hope when you stop work</li><li>A retirement modeller for IWDC members and a pension planner for DB members, showing how much your pension might be worth by the time you retire. These can be found by logging in to your <a data-sf-ec-immutable="" href="https://member.railwayspensions.co.uk/login">myRPS account</a> </li><li>A range of videos in the <a data-sf-ec-immutable="" href="https://member.railwayspensions.co.uk/resources/video-library">video library</a>, covering topics such as planning and saving, tax and your retirement options</li></ul><p>As well as the tools available on this website, you may come across other online sources, including artificial intelligence (AI) tools like ChatGPT or Gemini. While these can be helpful for general guidance, they don’t replace personalised financial advice. AI can make mistakes and may give you information that’s incomplete, out of date or not relevant to your situation, so it shouldn’t be the only source you rely on when making important decisions. <br></p><p>For important financial choices, it’s always worth checking information carefully and considering financial advice from a qualified professional.</p><h3><strong>When to think about getting financial advice for your pension </strong></h3><p>Reasons for consulting a financial adviser can include getting help with:</p><ul><li>General financial planning</li><li>Tax </li><li>Deciding how to take your pension when approaching retirement </li><li>Avoiding pension scams by getting an expert opinion and/or a steer toward reputable services/products</li></ul><p>Getting advice for your pension could also be particularly useful if things in your life have changed, or if you’re considering a change of another kind. </p><p>For example: </p><ul><li>If you are starting a new pension or deciding which pension arrangements to join</li><li>If you are considering whether to transfer your pension</li><li>If you’ve recently received money, such as inheritance, or a lump sum pension pay-out and are unsure what to do with it </li><li>If your personal situation has changed, for example through divorce </li></ul><h3><strong>The benefits of getting financial advice for your pension</strong></h3><p>Getting financial advice usually means having an expert in your corner. For example, someone who can: </p><ul><li>guide you through any difficult decisions relating to your pension and recommend a way forward to suit your needs</li><li>point you towards products and options that will best match your personal circumstances and goals. And in some cases access products you wouldn’t necessarily have found on your own. </li><li>put together a plan and make sure it stays on track over the longer term, even making adjustments with your permission if necessary </li><li>help make sure you’re within the relevant tax allowances and advise on alternatives if you’re reaching them </li><li>look at ways to boost your pension</li></ul><h3><strong style="background-color: rgba(0, 0, 0, 0); color: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto">Finding the right financial adviser for your pension</strong></h3><p>It’s important to first understand the different between guidance and advice. They may sound similar, but from a financial perspective there is an important difference. </p><p>Individuals and organisations offering financial guidance can help you understand your options and factors you may wish to consider. However, guidance does not tell you what you should do. Whereas financial advisers can actually recommend which product they think would suit you best.</p><p>Unlike guidance services, financial advisers are regulated by the Financial Conduct Authority (FCA). This means they have to agree to a certain level of standards and you can get additional support through the Financial Ombudsman Service or Financial Services Compensation Scheme if things go wrong.</p><p>Liverpool Victoria (LV)&nbsp;has been chosen as the official partner to give RPS members access to financial advice. </p><p>LV covers all areas of pension advice, including:</p><ul type="disc"></ul><ul><li>retirement</li><li>financial planning</li><li>transfers</li></ul><p>And has a dedicated team, with specific knowledge on the Scheme.</p><p><span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto">LV can be contacted on 0800 023 4187.</span></p><p><span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto"></span><span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto">You are still free to choose your own Independent Financial Advisor (IFA). You can find an IFA in your area at&nbsp;</span> <a style="font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal" data-sf-ec-immutable="" target="_blank" href="https://www.unbiased.co.uk/">unbiased.co.uk</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; white-space: inherit; word-spacing: normal; caret-color: auto">More information about getting help and advice is also available <a href="/pension-essentials/guidance-advice">here</a><span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto">.&nbsp;</span></span> </p><h3><span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto"></span><strong style="background-color: rgba(0, 0, 0, 0); color: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto">Considering the cost of financial advice</strong></h3><p><strong style="background-color: rgba(0, 0, 0, 0); color: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto"></strong><span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto">Getting financial advice can be expensive.&nbsp;</span></p><p><span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto"></span><span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto">Any member who contacts LV will be evaluated for free first, to make sure that only those who truly need advice will progress to the chargeable stage. And even then, LV will offer its services at a discounted rate for RPS members.</span></p><p><span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto"></span><span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto">If you chose to find your own independent adviser, then keep in mind that not everyone offers a free introductory session and that their charges and areas of expertise may differ. So it’s best to shop around to find the best fit.</span></p><h3><span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto"></span><strong style="background-color: rgba(0, 0, 0, 0); color: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto">Looking out for scams offering financial advice</strong></h3><p><strong style="background-color: rgba(0, 0, 0, 0); color: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto"></strong><span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto">Scammers sometimes pose as financial advisers, or claim to be offering financial guidance and advice, as a way of getting their hands on your pension.</span></p><p><span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto"></span><span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto">You should be particularly cautious if anyone contacts you out of the blue, or offers you a free pension review or no-obligation consultation. </span>Especially if they actively encourage you to transfer your pension or ‘unlock your benefits early before Normal Minimum Pension Age (NMPA), which is currently 55.’</p><p>Also be alert to anyone promising guaranteed returns, high investment growth or overseas investment opportunities. These are also common warning signs of pension scams.</p><p><span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto"></span><span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto">Before entering a conversation with anyone, you should check their details against the </span> <a target="_blank" data-sf-marked="" style="font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal" data-sf-ec-immutable="" href="https://register.fca.org.uk/s/">Financial Conduct Authority (FCA) register</a> <span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto"> to make sure they are fully regulated and have the FCA’s permission to provide the services they’re claiming to offer.</span> </p><p><span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto"></span><span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto">You can also check the FCA’s </span> <a target="_blank" data-sf-marked="" style="font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal" data-sf-ec-immutable="" href="https://www.fca.org.uk/consumers/unauthorised-firms-individuals">warning list</a> <span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto"> to see the names of companies who are known to be operating without proper authorisation.</span> </p><p><span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto"></span><span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto">You can read more about staying safe from scams </span> <a style="font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal" data-sf-ec-immutable="" href="https://member.railwayspensions.co.uk/resources/safety-and-scams">here</a> </p>

<div></div><div><br></div><div><p>Family leave (maternity, paternity, and adoption leave), as well as part-time working or taking a career break, can ultimately impact your pension contributions and pension benefits you receive. </p><p>Here’s a straightforward guide to what you need to know. You can jump to the relevant section of the article using the links below.</p><ul><li><a href="#section1" data-sf-ec-immutable="">Types of family leave</a></li><li><a href="#section2" data-sf-ec-immutable="">Your pension during family leave</a></li><li><a href="#section3" data-sf-ec-immutable="">Working part-time</a></li><li><a href="#section4" data-sf-ec-immutable="">How to make the most of your pension with the Scheme</a><br></li></ul><h3 id="section1">Types of family leave</h3><h4><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">Maternity pay and leave&nbsp;</span></h4></div><div><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">The following are your statutory rights, but your employer may have a different policy.&nbsp;&nbsp;</span></div><div><br></div><div>You are entitled to statutory maternity pay if you:&nbsp;</div><div><br></div><ul><li>have worked for your employer for 26 weeks when you reach the 15th week before your due date, and&nbsp;</li><li>earn on average at least £129 per week.&nbsp;</li></ul><div>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 £194.32 a week, whichever is lowest. The remaining 13 weeks are unpaid.&nbsp;&nbsp;</div><div><br></div><div>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.&nbsp;</div><div><br></div><h4>Paternity leave&nbsp;</h4><div>Under the same rules as statutory maternity pay, you are entitled to two weeks’ statutory paternity pay. The weekly rate is £194.32 or 90% of your average weekly earnings, whichever is lower.&nbsp;</div><div><br></div><h4>Adoption leave&nbsp;</h4><div>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.&nbsp;</div><div><br></div><div>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.&nbsp;</div><div><br></div><h4>Shared parental leave&nbsp;</h4><div>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.&nbsp;</div><div><br></div><div><h3 id="section2">Your pension during family leave &nbsp;</h3></div><div>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. However, if you are in a defined benefit (DB) section of the Railways Pension Scheme, your pension benefits will not be affected. If you are in the Industry-Wide Defined Contribution (IWDC) Section, it will be affected by any reduction to the contributions paid in.&nbsp;</div><div><br></div><div>If your pay reduces to nil, then your contributions will stop and your pension benefits may be affected. Your employer may continue to pay them on your behalf, but you may have to pay these back once you return to work – you would need to arrange this directly with your employer.&nbsp;</div><div><br></div><div>While you’re on family leave, your pension benefits won’t be affected, as long as you haven’t opted out of your Scheme membership and contributions are paid. Your overall benefits will still be based on your final average pay.&nbsp;</div><div><br></div><div>For more information, check the &nbsp;<a href="https://cdn-suk-memberportal-preprod-002.azureedge.net/mp-sitefinity-preprod/docs/default-source/rayn/guides-for-active-(contributing)-members/guide-for-family-leave.pdf?sfvrsn=9db485ae_12" target="_blank">family leave guide</a>.&nbsp;</div><div><br></div><h4>The gender pension gap&nbsp;</h4><div>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. This is because, in many cases, women pause their careers or go part-time to care for their children (this is sometimes known as the ‘motherhood penalty’).&nbsp;</div><div><br></div><div>The <a href="https://adviser.scottishwidows.co.uk/assets/literature/docs/61536.pdf" target="_blank" data-sf-ec-immutable="">2025 Women and Retirement report</a>, produced by Scottish Widows, shows that the median annual retirement income of UK mothers is 32% lower than men’s (£13k for women vs £19k for men), largely driven by women having longer career breaks, 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 to meet the criteria for pension &nbsp;<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>.&nbsp;</div><div><br></div><div>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.&nbsp;</div><div><br></div><div>What is more, the fact that they’ll have worked less years throughout their life could reduce their <a href="https://www.gov.uk/new-state-pension" target="_blank" data-sf-ec-immutable="">State Pension</a> entitlement if they do not build enough qualifying National Insurance years (although credits such as child benefit can help to protect this). To get any State Pension, people in the UK are required to have worked for a minimum of 10 qualifying years. To get the full State Pension, 35 qualifying years of work are required.&nbsp;&nbsp;</div><div><br></div><div>The 2025 Women and Retirement report also says that around half of all women have taken a career break compared with only one in five men. Around one quarter of women over 55 have spent five years or more out of the workforce, which increases the risk of not qualifying for any State Pension further down the line. You can check your <a href="https://www.gov.uk/check-state-pension" target="_blank" data-sf-ec-immutable="">State Pension forecast</a> on the government’s website.&nbsp;</div><div><br></div><div><h3 id="section3">Working part-time</h3></div><div>Many parents, especially mothers, choose to work part-time to balance work and family. While this offers flexibility, it affects your pension.&nbsp;</div><div><br></div><div>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  <a href="https://member.railwayspensions.co.uk/knowledge-hub/help-and-support/glossary" data-sf-ec-immutable="">Section Pay</a> for your job, but is reduced for the hours you work.  &nbsp;</div><div><br></div><div>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  <a href="https://cdn-suk-memberportal-preprod-002.azureedge.net/mp-sitefinity-preprod/docs/default-source/rayn/guides-for-active-(contributing)-members/guide-to-part-time-work166beabb5d844e31a0839a6ff1bb075b.pdf?sfvrsn=4d5472da_9" target="_blank">guide to part-time work</a>.&nbsp;</div><div><br></div><h4>The gender pay gap&nbsp;</h4><div>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 <a href="https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/earningsandworkinghours/bulletins/genderpaygapintheuk/2025" target="_blank" data-sf-ec-immutable="">2025 figures</a> show a narrowing of this gap over time.&nbsp;&nbsp;</div><div><br></div><div>In April 2025, women earned an average of 6.9% less than men per hour, according to the ONS (down from 7.1% in April 2024).&nbsp;</div><div><br></div><div>The significant gap in income means women have less capacity to meet increasing financial demands. The 2025 Women and Retirement report, by Scottish Widows, suggests that on average, 24% of men have savings above £10,000 compared to only 16% of women. Men are also more likely to be able to draw from other long-term savings sources in retirement, with 37% of them investing in stocks and shares ISA, compared to 26% of women.&nbsp;</div><div><br></div><div>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.&nbsp;</div><div><br></div><div><h3 id="section4">How to make the most of your pension with the Scheme&nbsp;</h3></div><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. <a href="https://member.railwayspensions.co.uk/login" data-sf-ec-immutable="">Register and/or log in </a>and check your account today.&nbsp;<br></li><li>Don’t forget your National Insurance (NI) 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.  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.&nbsp;<br></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="https://member.railwayspensions.co.uk/login" data-sf-ec-immutable="">Log in to your myRPS account</a> to check what your NRA is.&nbsp;<br></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 <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 IWDC members, you can <a href="https://member.railwayspensions.co.uk/iwdc-members/Im-still-working/saving-more" data-sf-ec-immutable="">save more with AVCs</a>.&nbsp;<br></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 <a href="https://www.gov.uk/find-pension-contact-details" target="_blank" data-sf-ec-immutable="">gov.uk/find-pension-contact-details</a> and follow the online steps.&nbsp;</li></ul>

<div>When decisions are made that could affect your pension – whether within the railways pension schemes or through changes to law and regulation – the Trustee is there to represent you and make sure members’ voices are heard.</div><div><br></div><h5>The Trustee and its role</h5><div>The Trustee – known more formally as the Railways Pension Trustee Company Limited (RPTCL) – is the independent body with legal responsibility for running the railways pension schemes.</div><div><br></div><div>While Railpen supports the Trustee&nbsp; to look after much of the day-to-day running of the schemes and manages the schemes’ assets, the Trustee remains ultimately responsible for the schemes&nbsp; and their oversight —making sure members’ benefits are protected and the schemes are well run over the long term.</div><div><br></div><div>In doing this, the Trustee has to consider the requirements of the scheme rules and relevant laws and regulations,&nbsp; as well as regulatory codes of practice and guidance. But above all, it focuses on making decisions that it believes are best for members’ and their beneficiaries.</div><div><br></div><h5>How the Trustee is standing up for members&nbsp;</h5><div>The Trustee’s mission is to pay pensions securely, affordably and sustainably over the long term&nbsp; . That includes working with Railpen, employers and government bodies - and speaking up when changes to law or the rail industry could affect the schemes and members.</div><div><br></div><div>For example, the Trustee has been working directly with members of Parliament and the House of Lords to help make sure the government’s new Pension Schemes Bill will have a positive impact on people’s retirement, while also supporting economic growth in the UK, once it becomes law. This has already led the Pension Protection Fund (PPF) to reduce its main levy on defined benefit schemes to zero, which is reducing costs for schemes and enabling some members and employers to pay lower contributions.&nbsp;</div><div><br></div><div>The Trustee and Railpen have also worked closely with other pension schemes, industry bodies, and those in government to influence new inheritance tax laws being introduced by the Finance Act 2026. The Trustee has successfully argued for substantial changes on members’ behalf, including the exclusion of all death in service benefits from the proposed scope of the new inheritance tax measures.&nbsp;</div><div><br></div><div>Within the rail industry, the Trustee and Railpen are also working closely with the government and other industry bodies on the long-awaited creation of Great British Railways (GBR). The Railways Bill – the legislation that will set up Great British Railways - is expected to become law later this year, and for GBR to be up and running by the end of 2027. The Trustee plans to remain closely involved in this process and help shape the future of rail pensions so members’ benefits remain protected for the long term.</div><div><br></div><div>The Trustee is committed to speaking up for members on issues like this, so that the impact on rail workers’ pensions and retirements is properly considered as decisions are made.</div><div><br></div><h5>Who is part of the Trustee</h5><div>There are 16 Trustee Directors who make up the Trustee Board. Half of them are nominated by employers from across the railways pension schemes, while the other half are nominated on behalf of members by the trade unions, Police Federation, committees, and pensioner organisations.</div><div><br></div><div>Each Trustee Director brings with them a wealth of experience in the railways industry and pensions, as well as a strong commitment to putting members first.&nbsp;</div><div><br></div><div>Christine Kernoghan, who has served on the Trustee Board since 2016 and as Chair of the Board since 2022, was recently shortlisted for the Adeline Ginn Lifetime Achievement Award at the Women in Rail Awards 2026. This was in recognition of her 38-year career in rail, during which time she has transformed railway pensions and continued to advocate for railway workers in their retirement.</div><div><br></div><div>Christine said: “I feel privileged to chair the Trustee Board and care deeply about the schemes’ members. Members’ interests sit at the heart of every decision the Trustee makes.”</div><div><br></div><div>You can see a full list of the current Trustee Board members and learn more about the experience and interests on the <a href="/knowledge-hub/the-trustee/meet-the-trustee">Meet the Trustee page</a>.&nbsp;</div><div><br></div><h5>How you can get involved&nbsp;</h5><div>You can find out more about the Trustee, including its responsibilities and structure in the<a href="/knowledge-hub/the-trustee"> Trustee section</a> of this website.&nbsp;&nbsp;</div><div><br></div><div>There, you can also find out more about what it takes to be a&nbsp; member of the Trustee Board and how you can apply for a future role.</div>

<p><strong>This blog is for defined benefit (DB) members of the Railways Pension Scheme (RPS).</strong><strong></strong></p><p>From time to time, you might find yourself with a little extra money in your pay; perhaps from overtime, shift allowances, commission, backpay or other one-off payments. It’s easy for those amounts to get absorbed into everyday spending without much thought.</p><p>You could use some of that extra income to boost your pension savings.</p><p>For many defined benefit members of the <strong>Railways Pension Scheme</strong>, this can be done through <strong>BRASS. </strong>Historically short for <em>British Rail Additional Superannuation Scheme,</em> BRASS is the Railways Pension Scheme’s main Additional Voluntary Contribution (AVC) arrangement. </p><p>BRASS lets you save extra into a separate pension pot alongside your main Scheme pension, with tax advantages and flexibility built in. It isn’t entirely investment risk free, but for some members, it can be a straightforward way to turn extra earnings into longer-term retirement savings.</p><p><strong>BRASS: key facts</strong></p><ul type="disc"><li>BRASS stands for British Rail Additional Superannuation Scheme. It is the Railways Pension Scheme’s main Additional Voluntary Contribution arrangement</li><li>BRASS is available to members currently paying in to defined benefit (DB) sections of the Railways Pension Scheme</li><li>You can make regular contributions or one-off payments</li><li>Contributions receive tax relief, subject to HMRC limits</li><li>Your BRASS pot is invested, so its value can go up and down</li><li>You can choose which fund(s) to invest your BRASS pot&nbsp; in, and the level of risk you are comfortable with.</li><li>You usually take your BRASS pot at the same time as your DB pension, unless you transfer it to another pension arrangement first</li></ul><p><strong>Why some members use extra earnings to pay into BRASS</strong><strong></strong></p><p style="margin-left: 30px"><strong>1. Flexibility for irregular income</strong></p><p>BRASS is flexible. You can:</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">make small regular contributions, or</span></li><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"></span>pay in one-off amounts when you have extra earnings.</li></ul><p>That flexibility is one reason some members choose BRASS when their income isn’t the same every month.</p><p style="margin-left: 30px"><strong>2. Tax relief is built in</strong></p><p>BRASS contributions are taken from your pay before income tax is worked out. This is known as a net pay arrangement. It means you automatically receive tax relief on what you pay in, within HMRC limits such as the Annual Allowance.</p><p>For some members, this makes paying extra earnings into BRASS more tax efficient than taking the same amount as taxable pay.</p><p style="margin-left: 30px"><strong>3. To provide extra income in retirement</strong></p><p>Your Railways Pension Scheme benefits provide a valuable foundation for retirement income. Paying extra into BRASS can help you build an additional pension pot alongside your main Scheme benefits. When you come to take your pension benefits, your BRASS pot could be used to provide extra income or increase the lump sum you take at retirement, depending on your circumstances and the choices available at the time.</p><p style="margin-left: 30px"><strong>4. Flexibility that could support retiring earlier</strong></p><p>Some members use BRASS as part of wider retirement planning. Having an additional pension pot may give you more options around when you retire. Whether that additional pot could help you retire earlier will depend on your personal circumstances, your overall savings, and how your BRASS pot is invested and performs.</p><p style="margin-left: 30px"><strong>5. You might save on National Insurance too</strong></p><p>Some employers offer BRASS through salary sacrifice. Where this applies, you agree to give up part of your pay and your employer pays the pension contribution instead. This can reduce National Insurance contributions, so more of your pay goes into your pension.</p><p>Salary sacrifice arrangements are set by employers and don’t apply everywhere, so it’s always worth checking with your employer what’s available to you.</p><p><strong>How much can you pay into BRASS?</strong><strong></strong></p><p>If you want to work it out before speaking to your payroll or HR team, log in to your myRPS account and use the BRASS maximum calculator. The calculator helps you estimate how much you can pay into BRASS based on your pay and existing pension contributions. </p><p>Find the calculator in the ‘Planning for the future’ area of your myRPS account.</p><p><strong>What the BRASS limit is based on</strong><strong></strong></p><p>In broad terms, the maximum you can pay into BRASS is worked out using:</p><ul type="disc"><li>your earnings, and</li><li>how much you already contribute to your main Scheme pension</li><li>HMRC <a target="_blank" href="/pension-essentials/pension-tax-limits">tax</a> limits, such as the Annual Allowance, which apply to all pension savings</li></ul><p>Because pay and contributions can change during the year – especially if you work overtime or receive additional payments – your BRASS maximum can change too. That’s why you should check before making a larger or one-off contribution.</p><p><strong>If you’re paying in to BRASS regularly</strong><strong></strong></p><p>If you already pay a regular amount into BRASS, that counts towards your annual maximum. The calculator takes this into account and shows how much extra you may be able to pay in. </p><p><strong>If you want to save more than the maximum allowed for BRASS </strong><strong></strong></p><p>Some members reach their BRASS limit and still want to save more. In those cases, <a href="https://www.railwayspensions.co.uk/defined-benefit-members/saving-more-BRASS-AVC-Extra/save-more-AVC-Extra" target="_blank" data-sf-ec-immutable="" data-sf-marked=""><strong>AVC Extra</strong></a> may be available. AVC Extra is a separate Additional Voluntary Contribution arrangement with its own rules and limits . AVC Extra is not available to Network Rail members.</p><p><strong>How to pay extra earnings into BRASS</strong><strong></strong></p><p>Start the process by completing the <strong>BRASS e-form</strong> once you’ve logged into your myRPS account. You can then send it to your HR or Payroll team. It will give them all the information they need to set up the contribution. If the amount you’ve asked to contribute is over your limits for paying in to BRASS, your HR or Payroll team will let you know. You may then decide to pay the excess into AVC Extra.</p><p><strong>How could your BRASS pot supplement your Railways Pension Scheme defined benefits?</strong><strong></strong></p><p>If you’d like to see how your BRASS pot could increase your pension benefits, log in to your myRPS account and use the Pension Planner to model your BRASS contributions. It will show how any one-off or regular BRASS contributions could boost your lump sum when you come to take your benefits. </p><p><strong>Manage your BRASS funds from your myRPS account</strong></p><p>Once you’ve paid into BRASS, you can manage your savings through your <strong>myRPS account</strong>. When you log in, you can see the current value of your BRASS pot, review how it’s invested, and make changes if you need to. You can choose to invest in one or more Lifestyle strategies, where your investments are managed for you, or select individual investment funds if you prefer a more hands-on approach &nbsp;– or a mix of both. You can change where your existing savings are invested, decide where future contributions go, and check how your choices are performing, all in one place. </p><p>It’s a good idea to review your BRASS funds from time to time to make sure they still feel right for you, especially as your plans or circumstances change.</p><p><strong>Consider how your extra earnings can work best for you</strong></p><p>Paying occasional extra income into BRASS won’t be right for everyone. Remember, BRASS savings are invested, so their value can go down as well as up and returns are not guaranteed. But for some members, it can be a useful way to add to pension savings, with the benefit of tax relief, flexibility and the reassurance of staying within the Scheme.</p><p>As with any pension decision, it’s worth taking the time to understand how it works and what the risks are.</p><p>To find out more about paying in to BRASS:</p><ul type="disc"><li>log in to <strong>myRPS</strong> to view your current BRASS pot value</li><li>speak to your <strong>payroll </strong>or <strong>HR team </strong>about your options</li><li>visit the <a data-sf-ec-immutable="" href="https://www.railwayspensions.co.uk/defined-benefit-members/saving-more-BRASS-AVC-Extra"><strong>Saving more with BRASS</strong></a> pages to learn more</li></ul>

<div><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">Your pension is more than just numbers on a page – it’s your future, your plans, and your peace of mind. Railpen’s role, as administrator and investment manager of the railways pension schemes, is to help look after that future for you; by investing your contributions sustainably and making sure your pension is paid securely when you retire.&nbsp;</span><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">&nbsp;</span></div><div><br></div><div>In this blog you’ll learn more about what happens behind the scenes, how your money is invested, and how Railpen works every day to support the retirement you’re building.&nbsp;<span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">&nbsp;</span></div><div><br></div><h5>Who Railpen supports and how&nbsp;</h5><div>Railpen began in 1965 as the pensions office for the British Rail Pension Scheme. Today, it operates&nbsp;&nbsp;<span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">four railways pension schemes on behalf of The Railway Pensions Trustee Company Limited (RPCL).&nbsp;</span></div><div><br></div><div>These are:&nbsp;&nbsp;</div><div><br></div><ul><li>The Railways Pension Scheme (RPS) – which is still open to new members&nbsp;&nbsp;</li><li>The British Transport Police Force Superannuation Fund (BTPFSF) – which is still open to new members&nbsp;</li><li>The British Railways Superannuation Fund (BRSF) – which is closed to new members&nbsp;</li><li>BR (1974) Pension Fund – which is closed to new members </li></ul><div>Across these schemes, Railpen supports more than 350,000 active, preserved and retired members – as well 150 employers – managing assets, administration, and communications on their behalf.&nbsp;&nbsp;</div><div><br></div><div>But what does that mean in practice and how does it impact you? Read on to find out more, or watch this short video…&nbsp;</div><div><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">&nbsp;</span></div><div data-sf-ec-immutable="" class="-sf-relative" contenteditable="false" style="width: 560px; height: 315px"><div data-sf-disable-link-event=""><iframe width="560" height="315" src="https://www.youtube.com/embed/dnScL5e6lhU?si=pEkm6ujaY8O2T9Kv" title="YouTube video player" sandbox="allow-scripts allow-same-origin allow-presentation allow-popups allow-popups-to-escape-sandbox"></iframe></div></div><p>&nbsp;</p><h5>How Railpen manages your money&nbsp;&nbsp;</h5><div>Railpen manages more than £34 billion in assets, which it uses to help pay members’ pensions when they retire or otherwise leave the scheme.&nbsp;&nbsp;</div><div><br></div><div>Part of these assets come directly from the money (or ‘contributions’) that you and your employer pay in.&nbsp;&nbsp;</div><div><br></div><div>However, a much larger proportion comes from returns generated by Railpen’s award-winning investment team.  In fact, for every £1 the scheme pays out, around 75p comes from investment growth.&nbsp;&nbsp;</div><div><br></div><div>For defined benefit (DB) pensions – which includes most Sections of the Scheme – the money that members and employers pay in is pooled together and invested by Railpen. This doesn’t change how much pension you get – that’s set by the Rules of your Section. But it does help keep the Scheme strong for the future and helps to pay members’ pensions securely, affordably and sustainably.&nbsp;</div><div><br></div><h5>How does Railpen decide where to invest?&nbsp;</h5><div>Railpen follows a clear investment strategy, built around the needs of the scheme and its members.&nbsp;&nbsp;</div><div><br></div><div>For example, Railpen believes that a mix of investments delivers better long-term outcomes for members and helps to protect against ups and downs in the market.&nbsp;&nbsp;</div><div><br></div><div>In short, this means that Railpen invests your money across a wide range of companies and brands, both in the UK and further afield, which have been carefully selected to generate good financial returns over the longer-term.&nbsp;&nbsp;</div><div><br></div><div>Railpen also believes that considering a range of environmental, social and governance (ESG) factors, such as climate change and how companies are run, are essential to delivering these strong returns for members. By taking these issues into account in its investment decisions, Railpen aims to protect members’ savings, manage long- term risks and contribute positively to the world members retire into.&nbsp;</div><div><br></div><div>Railpen’s CEO, Andy Bord said:<em> “Every single decision that we take puts the members right at the centre. And every pound of profit that’s made is about securing the ability to pay their pensions affordably and sustainably, whether they’re a new starter in the railway industry today or someone that’s been serving for the last 40 years.”&nbsp;&nbsp;</em></div><div><br></div><div>We’ll be publishing a series of blogs over the coming months, putting the spotlight on some of Railpen’s current investments and what they mean for your pension, so please come back and read those soon.&nbsp;&nbsp;</div><div><br></div><div>In the meantime, you can find out more about Railpen’s approach to investing in the&nbsp;&nbsp;</div><div><a href="/knowledge-hub/investments">investment section of this website</a> and on <a data-sf-ec-immutable="" target="_blank" href="https://www.railpen.com/">Railpen's website</a>.&nbsp;</div><div><br></div><div>And in these short videos:&nbsp;&nbsp;</div><div><br></div><div data-sf-ec-immutable="" class="-sf-relative" contenteditable="false" style="width: 560px; height: 315px"><div data-sf-disable-link-event=""><iframe width="560" height="315" src="https://www.youtube.com/embed/6iHd09WsT8U?si=h_jfvYeI197DvC6l" title="YouTube video player" sandbox="allow-scripts allow-same-origin allow-presentation allow-popups allow-popups-to-escape-sandbox"></iframe></div></div><div><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">Railpen’s investment beliefs</strong></p><p><br></p></div><div><div data-sf-ec-immutable="" class="-sf-relative" contenteditable="false" style="width: 560px; height: 315px"><div data-sf-disable-link-event=""><iframe width="560" height="315" src="https://www.youtube.com/embed/L5TAYUic9_Y?si=Ykh1aEzjBEmBn-c_" title="YouTube video player" sandbox="allow-scripts allow-same-origin allow-presentation allow-popups allow-popups-to-escape-sandbox"></iframe></div></div><strong>Railpen's UK investments&nbsp;</strong></div><div>&nbsp;</div><div></div><div><br></div><h5>How investments work for defined contribution (DC) pensions&nbsp;</h5><div>Investments work differently for defined contribution (DC) pensions than they do for defined benefit (DB). DC pensions include the IWDC Section and the Additional Voluntary Contributions arrangements (BRASS and AVC Extra). You can find out more about investments in DC pensions specifically on the Investing: Basics I need to know pages for <a href="/iwdc-members/managing-investments/investing--the-basics-i-need-to-know">IWDC members</a> or for <a href="/defined-benefit-members/saving-more-BRASS-AVC-Extra/the-basics-of-investments">BRASS and AVC Extra members</a>. &nbsp;</div><div><br></div><h5><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">When you might hear from Railpen&nbsp;&nbsp;</span></h5><div>As the administrator and investment manager of the railways pension schemes, Railpen is the driving force behind its day-to-day operations. This means, that even though you might contact the Railways Pension Scheme (RPS), British Transport Police Force Superannuation Fund (BTPFSF), British Railways Superannuation Fund (BRSF) or BR (1974) Pension Fund, it is ultimately the team at Railpen that will be responding to your queries and supporting you on your pensions journey.&nbsp;&nbsp;</div><div><br></div><div>They are also responsible for producing the communications that keep you up to date with your pension, such as your annual newsletter and regular e-bulletins. And for developing the scheme websites and tools that help you to manage your pension online.&nbsp;&nbsp;</div><div><br></div><div>In doing so, Railpen’s core aim is to make it as clear and easy as possible for members to get to grips with their pension, from the day they join the Scheme and throughout key life moments, in order to the get the best outcomes possible.&nbsp;&nbsp;</div><div><br></div><div>Nicola Cromack, Chief Officer for Member Services at Railpen, said:<em> “Pensions are about people and we understand the difference we can make to the lives of our members and their families. They rely on us to pay the pensions they’ve been promised and doing so is our fundamental duty, our role and our privilege.”&nbsp;</em></div><div><br></div><div><p>You can hear more from Nicola about Railpen’s member-first culture in this short video:&nbsp;</p><div style="width: 560px; height: 315px" contenteditable="false" class="-sf-relative" data-sf-ec-immutable=""><div data-sf-disable-link-event=""><iframe title="YouTube video player" src="https://www.youtube.com/embed/dnScL5e6lhU?si=pEkm6ujaY8O2T9Kv" height="315" width="560" sandbox="allow-scripts allow-same-origin allow-presentation allow-popups allow-popups-to-escape-sandbox"></iframe></div></div><p><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit"></span><span style="background-color: initial; 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: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">Railpen also works closely with employers with Sections in the Scheme to provide support and keep them fully informed of developments either within the Scheme or the wider pensions industry.&nbsp; &nbsp;</span></p></div><h5>Where to find out more&nbsp;&nbsp;</h5><div>Over the coming months, we’ll be delving deeper into how Railpen invests for your future, with blogs about its different type of assets, including some real-world examples of investments in property and stocks.&nbsp;&nbsp;</div><div><br></div><div>In the meantime, you can find out more in the following sections of your member website&nbsp;&nbsp;</div><div><br></div><ul><li><a href="/knowledge-hub/about-the-scheme">about the Scheme&nbsp;&nbsp;</a></li><li><a href="/knowledge-hub/investments">investments</a>&nbsp;</li></ul><div>And at <a data-sf-ec-immutable="" target="_blank" href="https://www.railpen.com/">railpen.com&nbsp;</a></div><div><br></div><div>You can also read more about investments and the Scheme’s assets, in a number of publications including the annual Report and Accounts and Sustainable Ownership Member Review. These can be found on the <a href="/knowledge-hub/investments/investment-reports">investment reports page</a>.&nbsp;&nbsp;</div><p>&nbsp;</p>

<p>Whilst we can’t tell you which option is best for your individual circumstances, we can explain how Additional Voluntary Contributions (AVCs) work in the Railways Pension Scheme, and how these differ from Self-Invested Personal Pensions (SIPPs) and Individual Savings Accounts (ISAs).</p><p>These 3 arrangements offer very different ways to save and invest, with different tax rules and levels of access.</p><h5>Additional Voluntary Contributions (AVCs)</h5><p>AVCs are flexible extra pension savings you can make directly from your pay before tax is taken, on top of the normal pension contributions.<br></p><p>In the RPS there are 2 AVC arrangements: BRASS and AVC Extra. <br></p><p><strong>BRASS</strong></p><p>BRASS is the main arrangement for all active Defined Benefit members and is a great way to boost your retirement income. <br></p><p>It can be particularly useful if you receive additional earnings that don’t count towards your main Scheme pension – for example, overtime or bonus payments. <br></p><p>You can pay as little as £2 per week or £10 per month (if you are paid monthly) on top of your usual pension contributions.</p><p><strong>AVC Extra</strong></p><p>AVC Extra is available to members who have already reached the maximum they can pay into BRASS and still want to save more.&nbsp;<br></p><p>You can choose how much you want to pay into AVC Extra, but you should be mindful of tax limits.</p><p><strong>Key features of AVCs:</strong></p><ul type="disc"><li data-list="1" data-level="1">Flexible payments - you don’t need to save a fixed amount every month. If expenses go up, you can reduce your contributions, and you can increase them again when things are easier.</li><li data-list="1" data-level="1">Good for variable earning - particularly useful for topping up retirement savings from overtime, bonus payments or other non‑pensionable pay.</li><li data-list="1" data-level="1">Tax relief on contributions - you’ll get government tax relief on anything you put in, up to your annual allowance - currently £40,000 for most people.&nbsp;If you’re a high earner with an income of more than £200,000 a year, your annual allowance might gradually reduce to as low as £4,000 in the current tax year.</li><li data-list="1" data-level="1">Locked until retirement - AVC savings normally can’t be accessed until you reach your Normal Pension Age – currently 55, rising to 57 in 2028.</li><li data-list="1" data-level="1">Limited investment choice – &nbsp;you choose from a pre-selected range of funds supplied by the Scheme’s investment manager, Railpen.</li></ul><p>More information on BRASS and AVC Extra is available in <a href="https://www.railwayspensions.co.uk/defined-benefit-members/saving-more-BRASS-AVC-Extra" data-sf-ec-immutable="">the saving more area of this website</a>. </p><p>&nbsp;</p><h5>Self-Invested Personal Pension (SIPP)</h5><p>A SIPP is a personal pension you set up and manage yourself, separate from your employer. <br></p><p>You can pay money in regularly or in lump sums, with the aim of growing your pension pot over the long term.<br></p><p>You can choose to manage your own investments or use a financial adviser (usually for a fee).</p><p><strong>Key features of SIPPs:</strong></p><ul><li>Tax relief – you receive tax relief on your contributions at your income tax rate (20%, 40% or 45%)<ins cite="mailto:Gary%20Collinson" datetime="2026-02-24T14:45">. </ins>Your contributions taken from your pay after tax, but your provider then claims basic-rate tax relief from the government and adds it to your pension pot. </li><li>Wider investment choice - you can choose from a much broader range of investments than you can with workplace AVCs</li><li>You can access the money in your SIPP from the age of 55 (this is due to rise to 57 from 2028). You can take your pension pot either as a lump sum, draw it down gradually or use it to buy an annuity – which will provide you with a regular income.</li><li>With a SIPP, you have full control over your account - you choose the provider, how much to pay in, and where to invest. You also have the flexibility to transfer to another provider, or to choose when to take them.<br></li></ul><p>You can <a href="https://www.moneysavingexpert.com/pensions/cheap-sipps/" target="_blank" data-sf-ec-immutable="" data-sf-marked="">understand more about SIPPs in this article.</a></p><p>&nbsp;</p><h5>Individual Savings Account (ISA)</h5><p>An ISA is a normal savings or investment account that you can open and pay into. <br></p><p>You pay into it from your after‑tax income, but all the growth, dividends and interest are tax‑free<br></p><p>There are different types of ISA accounts:<br></p><ul><li>Cash ISA</li><li>Stocks &amp; Shares ISA</li><li>Lifetime ISA (for first home or retirement)</li><li>Innovative Finance ISA<br></li></ul><p>These are available through banks, building societies and other financial providers.</p><p><strong>Key features of ISAs:</strong></p><ul><li>Tax-free growth - you don’t pay any tax on returns and what you receive is paid to you free of tax</li><li>No tax relief on contributions - you save from your take‑home pay</li><li>Flexible access – you can withdraw your money at any time with no penalties (except specific rules for Lifetime ISAs).</li><li>Annual limit - you can put in up to £20,000 per tax year across all your ISAs combined.<br></li></ul><p>You can <a href="https://www.which.co.uk/money/savings-and-isas/isas/cash-isas/what-is-an-isa-aMsB46O009W4" target="_blank" data-sf-ec-immutable="">find out more about the different types of ISAs and how to manage an ISA account in this blog.</a> <br></p>

<h4>Understanding DB estimates</h4><p>Your estimate is a personalised forecast of what you might get from your Scheme pension, based on how long you’ve been paying into it, along with the rules of your Section. </p><p>Because DB pensions aren’t individual ‘pots’, the estimate shows what your annual pension (and any lump sum, if you choose to take one) is likely to be at the retirement date you choose.</p><p>Your estimate takes into account:</p><ul><li><strong>Your pensionable service</strong><br>This is the length of time you’ve been an active member of your section. The more pensionable service you have, the more pension you’ll be likely to receive.&nbsp; This can also include extra pension service you have brought in from another pension scheme, if your section accepts transfers.<br><br></li><li><strong>Your pensionable pay or Career Average Revalued Earnings (CARE) revaluations</strong><p>For final salary Sections, your pension benefits are usually calculated using your pensionable pay from the 12 months before your retirement. <br></p><p>For CARE Sections, your pension is using your average pensionable pay across the length of your membership. This is then adjusted (revalued) annually to keep pace with inflation or your Section rules.<br></p></li><li><strong>Any early or late retirement factors that may apply</strong><br>These are adjustments made if you take your pension before or after your Normal Retirement Date (NRD). Early retirement normally reduces your benefits as they’re paid for longer, while late retirement may increase them as they’re expected to be paid for less time.<br><br></li><li><strong>How much you decide to take as a lump sum</strong><br><a id="_anchor_4" href="https://railpen.sharepoint.com/sites/CustomerExperienceFunction/ProjectsActive/RAIL/RPS/Web/RPS%20website%20-%202024%20onwards/Content/4%20-%20Knowledge%20hub/2%20-%20News%20and%20views/Blogs/2026/Understanding%20DB%20estimates%20and%20how%20to%20request%20one.docx#_msocom_4" name="_msoanchor_4" data-sf-ec-immutable=""></a>You usually have the option to exchange part of your annual pension for a tax-free cash lump sum at retirement if you want to. If you pay into the BRASS Additional Voluntary Contribution (AVC) arrangement, then those savings must be taken as part of your lump sum. <br><br>However, limits apply on how much tax-free lump sum you can take, so occasionally, your excess BRASS funds might be converted to pension.<a id="_anchor_6" href="https://railpen.sharepoint.com/sites/CustomerExperienceFunction/ProjectsActive/RAIL/RPS/Web/RPS%20website%20-%202024%20onwards/Content/4%20-%20Knowledge%20hub/2%20-%20News%20and%20views/Blogs/2026/Understanding%20DB%20estimates%20and%20how%20to%20request%20one.docx#_msocom_6" name="_msoanchor_6" data-sf-ec-immutable=""></a>You can find out more about this in our <a href="https://cdn3.railpen.com/mp-sitefinity-prod/docs/default-source/rayn/guides-for-all-members/lump-sum-allowances.pdf?sfvrsn=3fb0251a_2" data-sf-ec-immutable="">Read as You Need Guide on Lump Sum Allowances</a>.<br></li></ul><p>Your estimate helps you see a realistic projection of the benefits you could receive, so it’s a useful tool to have, whether you’re planning ahead, comparing options, or checking the impact of retiring earlier or later.</p><p>You can find more information on how your pension benefits are calculated for your specific Section in your Member Guide. You can find this in the ‘My Library’ area of your <a href="https://www.railwayspensions.co.uk/login" data-sf-ec-immutable="">myRPS account</a>.<br></p><h4>Request an estimate online</h4><p>The easiest way to request an estimate and details of your options is by <a href="https://www.railwayspensions.co.uk/register" data-sf-ec-immutable="">logging into your myRPS account</a>. </p><p>You can request an estimate directly from:</p><ul><li>The myRPS dashboard, or</li><li>The myRPS menu, by selecting ‘My Pension’ and then 'Request an estimate’.</li></ul><p>When you do it online, you can request as many estimates as you need, whenever you need them, free of charge.<br></p><h4>Choosing your estimate type and retirement benefits</h4><p>You’ll be asked to choose the type of estimate you want from the range of options available to you.</p><p>You can select ‘Read more’ to find out more about each estimate type. The options shown are based on your scheme and your member status.</p><p>You’ll then be asked to set your chosen retirement date or your chosen calculation date. This will either default to today’s date or your Normal Retirement Date (NRD), depending on the estimate type you selected.</p><p>Once you’ve set your retirement or calculation date, you’ll see all of benefit options available to you and can select ‘read more’ to learn what each one means. </p><p>You can also find out more about the different ways to take your pension in your Member Guide, which you’ll find in the ‘My Library’ area of your <a href="https://www.railwayspensions.co.uk/login" data-sf-ec-immutable="">myRPS account</a>.<br></p><h4>How long it takes</h4><p>Once you’ve hit submit, it’ll usually take less than an hour to generate your online estimate.</p><p>Your estimate will be sent to the Inbox area of your myRPS account as a message with a PDF attachment. You can also view it via the ‘Statements and Estimates’ page, under the My Pension area of your myRPS account.</p><p>If you haven’t received anything after 24 hours, please contact the Helpline for further support.<br></p><h4>Request an estimate by phone</h4><p>Alternatively, you can ask for an estimate by calling the Helpline on 0800 012 1117. </p><p>Charges may apply if you request an estimate from the Helpline more than once in a year.<br></p><h4>Working out if your pension adds up</h4><p><a href="https://www.railwayspensions.co.uk/defined-benefit-members/Im-planning-to-take-my-pension/making-the-right-decision" data-sf-ec-immutable="">Visit the making the right decision page</a> to find out more and learn what actions you can take if you're not on track to be able to afford the retirement you want. </p><p>Please keep in mind that, the <a href="https://www.railwayspensions.co.uk/defined-benefit-members/Im-planning-to-take-my-pension/how-much-Ill-need" data-sf-ec-immutable="">Retirement Living Standards</a> and <a href="https://www.railwayspensions.co.uk/knowledge-hub/help-and-support/retirement-budgeting-calculator" data-sf-ec-immutable="">Retirement Budgeting Calculator</a> figures are based on the income you may need <em>after tax,</em> whereas your estimate gives you an idea of what you might receive from your pension <em>before tax</em>.<br></p>

<p>What many members don’t realise is that it’s often possible to bring those benefits together. <br></p><p>This process is known as an inter‑Scheme transfer&nbsp;- and it can make your pension easier to manage in the long run.<br></p><p>In this blog, we’ll walk through what inter‑Scheme transfers are, how they work, and where you can go for more information.</p><h5>What are inter‑Scheme transfers?</h5><p>An inter‑Scheme transfer lets you move pension benefits you have built up in one Railways Pension Scheme (RPS or 'the Scheme') Section to another. <ins cite="mailto:Jenny%20Prodanova" datetime="2026-01-19T10:05"></ins><br></p><p>This usually comes into play when you change employers within the rail industry and your new employer participates in a different Section of the Scheme.</p><p>Inter‑Scheme transfers don’t happen automatically. Even if your new employer is also in the RPS, you’ll need to request the transfer yourself if you want to bring your savings together. <br></p><p>If you choose not to request a transfer, any preserved benefits you have built up in your previous Section will remain in that Section.<br></p><h5>How inter‑Scheme transfers work</h5><p>While each Section of the Scheme has its own rules, the process generally looks like this:</p><p><strong>Check whether your Section allows transfers</strong><br></p><p>Each RPS Section sets its own rules about transferring benefits in. Some Defined Benefit (DB) Sections allow it, some don’t. </p><p>Your Member Guide, available through&nbsp;<a href="https://www.railwayspensions.co.uk/login" target="_blank" data-sf-ec-immutable="">your myRPS account</a> account, will tell you exactly what’s allowed.<br><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></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">Request a transfer quote</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"></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">You can request one free inter‑Scheme transfer quote every 12 months. If you want additional quotes within the same year, there’s a fee of £96 (including VAT).<br></span><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">Special terms may apply if you request a transfer within 15 months of leaving your current Section.</span></p><p><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"></span><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">Complete an inter-Scheme transfer request form</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"></strong><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">If you decide to proceed, you’ll need to fill in the official form. This gives the Scheme administrator the go‑ahead to assess your transfer value and start the process.&nbsp;</span><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">You can download the form </span><a href="https://cdn3.railpen.com/mp-sitefinity-prod/docs/default-source/forms/final-salary-member-forms/inter-scheme-transfer-request-form.pdf?sfvrsn=4e6f1bb9_3" data-sf-ec-immutable="" style="font-family: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; white-space: inherit; font-size: inherit">here</a><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">.</span></p><p><strong>Your transfer value is calculated<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"></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">For DB members, the value of your benefits is calculated using a basis provided by the Scheme Actuary.</span><br>For Defined Contribution (DC) members, the value available for transfer reflects your pot.<br><br><strong>Your new Section confirms it can accept the transfer</strong><br></p><p>Before the transfer is finalised, the Scheme administrator checks whether your new Section is eligible and willing to accept your benefits.<br><br><strong>Other options</strong><br>Alternatively, you may be able to transfer your preserved pension benefits to:</p><ul><li>a different (DB) arrangement, or</li><li>a defined contribution (DC) arrangement, either in the UK, or to an overseas provider, subject to satisfying conditions set out in legislation<br></li></ul><h5>Where to find out more</h5><p>If you're considering an inter‑Scheme transfer, here are the best places to start:<br></p><p><a href="https://www.railwayspensions.co.uk/login" data-sf-ec-immutable=""><strong>Your myRPS account</strong></a>&nbsp;- log in to access:<br></p><ul type="disc"><li>Your Member Guide, which sets out the rules for your specific Section</li><li>The Inter‑Scheme Transfer Request Form</li><li>Detailed information about your benefits<br></li></ul><p><strong>This website</strong><br></p><p><a href="https://www.railwayspensions.co.uk/pension-essentials/transferring-my-pension" data-sf-ec-immutable="">The Transferring in or out section</a> provides:<br></p><ul type="disc"><li>Clear guidance on how the process works</li><li>Downloadable forms</li><li>Information tailored for DB and DC members<br></li></ul><h5>Financial guidance or advice</h5><p>While financial advice is usually required only for transferring DB benefits out of the RPS, some members still prefer to get guidance before making decisions about bringing their pensions together.</p>