My options

​Discover the different ways you can take your Fund pension and choose what's right for you. 

You can see a summary of your options in this short video.

Learn more about the different ways you can take your pension as a member of the Fund, along with a few things you might want to consider to help make the right choice for you. 

I'm paying into the 1970 Section

As a member of the 1970 Section of the Fund, you have the options below when you come to claim your pension. 

How much lump sum do you want?

As a 1970 member, your membership automatically provides a lump sum as well as a pension. However, you can choose to either:

Take more lump sum and less pension
You can give up some of your annual pension to provide extra tax-free cash. Giving up £1 of annual pension would provide an extra £13 lump sum. You are usually able to take up to 25% of the value of your benefits (but no more than £268,275) as a tax-free cash lump sum.

or 

Take less lump sum and more pension 
You can use some of your lump sum to buy extra annual pension. Giving up £13 of lump sum buys £1 of annual pension. However, if you are in BRASS, you must take a lump sum at least equal to the value of your BRASS fund. 

You do not have to choose the minimum or maximum - you can take a pension and lump sum anywhere in-between.

The flexible pension option

You may want to take your Fund pension before you can claim your State Pension. If you do, you can choose whether to have a lower starting pension that increases when you reach your State Pension Age, or a higher starting pension that reduces when you reach your State Pension Age.

No Flexible Pension option

If you do not choose a Flexible Pension option, your Fund pension starts at it's standard level and increases in line with inflation throughout your retirement.

Flexible Pension option A

Flexible Pension option A provides a lower Fund pension when you retire, then a higher Fund pension when you reach State Pension Age. This may be appropriate if you plan to take up another job when you take your benefits from the Fund.

Flexible Pension option B

Flexible Pension option B provides a higher Fund pension when you retire, then a lower Fund pension when you reach State Pension Age. This aims to smooth or level out your income throughout your retirement as shown in the diagram.

Extra dependant's option

You can give up some of your pension to increase the amount of pension your named dependant would receive on your death. The dependant's pension is increased by 15% and how much yours is reduced by depends on the age and sex of you and your dependant. If you choose this option and your dependant dies before you, the option cannot be undone.

I'm paying into the 2007 Section

How much lump sum do you want?

As a 2007 section member, your membership automatically provides a lump sum as well as a pension. However you can choose to use some of your lump sum to buy extra annual pension.

The cost of buying extra pension depends on your age and sex, but the estimates Railpen provides will show you the maximum additional pension under this option and what effect it would have on your lump sum. You do not have to choose the minimum or maximum - you can take a pension and lump sum anywhere in-between. 

I'm paying into the CARE Section

As a member of the CARE Section of the Fund, you do not earn a lump sum as well as a pension, but you can choose to give up some of your pension to provide a lump sum if you wish. How much lump sum is provided by giving up £1 of pension depends on your age and sex. The estimates Railpen provides will show you the maximum lump sum under this option and what effect it would have on your pension. You do not have to choose the minimum or maximum - you can take a pension and lump sum anywhere in between.

The impact of Additional Voluntary Contributions (AVCs)

BRASS
If you're a 1970 section member, you may have made BRASS contributions. Your BRASS fund is combined with your Fund benefits when you retire and it is included in estimates Railpen produce.

AVC Extra
If you're a member of the 2007 or CARE section, or if you are a 1970 section member and you have reached the BRASS contribution limit, you may have paid into AVC Extra. AVC Extra benefits are not combined with your Fund benefits, instead they are taken separately. 

How to choose the best option for you

Here are a few resources that might help you decide what options are right for you.

Online tools 

The Retirement Budgeting Calculator is available to help you consider your options. 

Help and advice

Ready to start your retirement? Here's a video on completing your Retirement Option Form, which you need to do once you've read your retirement quote and have decided how you'd like to take your pension benefits.

Before making any decisions about your future, ​it's a good idea to speak to an independent financial adviser. Go to the Unbiased website 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 has lots of information about your Fund benefits and options. You can find your Member Guide when you log in to your myFund account.

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