My retirement options

It's important to think carefully about your options if you want to start claiming your Fund pension. Here are some examples of how you can take your benefits:

A lump sum

When you retire, you may be able to take a lump sum with your Fund pension.

You may be able to claim a larger lump sum, currently tax free, by giving up part of your pension (limits apply). More details are in your Member Guide in the 'My library' section of myFund.

Extra pension for your dependants

A pension will be paid to your eligible dependants when you die, but you may be able to give up part of your pension to provide more for a named dependant.

These payments will continue until your dependant dies. However if your dependant dies before you, you will still only get the reduced pension.

Additional Voluntary Contributions (AVCs)

If you have paid into AVC Extra and/or BRASS, you must take these benefits at the same time as your main Fund benefits, or transfer them to another arrangement if you want to claim them earlier or later.

We strongly recommend that you seek independent financial advice from an adviser who is authorised by the Financial Conduct Authority (FCA) before making any transfers.

Flexible pension

This option applies if you joined the Fund before 1 April 2007 and want to take your benefits before your State Pension age.

You may be able to draw a higher Fund pension before you claim your State Pension, and a lower Fund pension afterwards. Alternatively you may be able to draw a lower Fund pension before you claim your State Pension, and a higher Fund pension afterwards.

Terms are based on your State Pension age when you take your pension from the Fund. Details will be provided when you request an estimate of your retirement benefits.

Transfer to a defined contribution (DC) arrangement

If you are approaching retirement and do not want to take your benefits in one of the ways outlined above, you may be able to transfer your defined benefit (DB) pension out of the scheme and into a DC arrangement instead.

This would give you more options for taking your pension, such as drawdown and annuity. However, it does carry significant risks. Please click here for more details.

Help and advice

Before making any decisions about your future, it's a good idea to speak to an independent financial adviser. See unbiased.co.uk for a list of IFAs in your area.

You could also chat to your employer, email csu@railpen.com or telephone the Helpline on 0800 012 1117.

Your Member Guide in myFund has lots of information about your Fund benefits and options.

And you can watch a short video explaining your options below.

Also in this section

Each of Railpen Limited (registered in England and Wales No. 2315380) and Railway Pension Investments Limited (RPIL) (Registered in England and Wales No. 1491097) is a wholly owned subsidiary of Railways Pension Trustee Company Limited (Registered in England and Wales No. 2934539). Registered office for each company: 100 Liverpool Street, London EC2M 2AT. RPIL is authorised and regulated by the Financial Conduct Authority for some of its activities. The administration of occupational pension schemes is not a regulated activity. Full details about the extent of RPIL's authorisation and regulation by the Financial Conduct Authority are available from us on request.