railway pension

henry24

Anyone know anything about the railway pension scheme?


I've worked on the railway for 5 years so can now change pensions and join the railway one. The pension I've had for the last 5 years has £17000 in it and I can leave it with Capita or transfer it to what they call Brass, they have sent a form PM85 asking which fund I want to use Global Equity or Long Term Growth. I haven't a clue anyone offer any advice?

Rolandtheroadie

I've always been in the Railway Pension Scheme, and everyone I work with that started later, have joined when they've reached the 5 years.

This may be handy to have a read through. There's a link about independent financial advice as well, which is probably best if you're unsure.

https://www.railwayspensions.co.uk/joining-the-rps

henry24

Thanks for that link. I have joined the railway pension it's just the first 5 years money I don't no what to do with

Rolandtheroadie

I'm in both those funds, they make up about 55% of my BRASS. The other 45% is in similar funds with regards to attitude to risk.

The two you mention are4 and 5 for attitude to risk, I went with them because I'm hoping to retire at 55 (9 years). If they don't do well, I'll have the option to work longer.
Your own age, current situation and future plans will play a big part in your decision as well. Do you want to put more into BRASS as well as the main pension scheme once/if you join?

Not sure if you'll have this information just now, but here's the current info from the pensions website.

The global Equity is up 1.7% in the past year, 7.6% since it started in 2013.

Long Term Equity up 5.8% in a year, and 8% since 2013

henry24

Thanks for replying Roland, the two I mention are the two they put separate to others as you can only select one lifestyle fund there are five in another list. How did you decide?
I'm 59 next in March with no other company pension so would like this to do well, I have joined and am putting extra into Brass each month.
I don't have that information but growth of 7.6% and 8% in 6 years doesn't seem that high maybe someone else could comment on that

greatkingrat

If you pick one of the lifestyle funds then they will automatically transfer your investments into cash as you get closer to retirement. This has the advantage of protecting you from a sudden stock market crash shortly before your intended retirement date, but will also lower your expected returns. If you are already 59 then this will start happening soon depending on your chosen retirement age.

Picking two lifestyle funds isn't possible as they would conflict with each other - either you pick a lifestyle fund and let the pension scheme adjust your investments going forwards, or you pick from the individual funds yourself in whatever proportions you choose and manage the investments yourself.

The growth rates of 7.6% and 8% are annual growth rates, not total growth rates so the funds have done well, but so have most funds invested in global equities over the last 6 years.

henry24

Thank you greatkingrat I'm slowly getting there, I think because of my age I'm going to be better with one of the lifestyle funds and hope it does well. They ask what age I would like to retire which due to a costly divorce I'm going to have to put 67 and hope I can finish sooner.

Andy7856

henry24 wrote: »

Anyone know anything about the railway pension scheme?


I've worked on the railway for 5 years so can now change pensions and join the railway one. The pension I've had for the last 5 years has £17000 in it and I can leave it with Capita or transfer it to what they call Brass, they have sent a form PM85 asking which fund I want to use Global Equity or Long Term Growth. I haven't a clue anyone offer any advice?

There are factsheets on the RPS site about the range of funds available. If you are placing the money into BRASS, then it is possible to move them between funds at a later date - all very easy so dont worry about been locked in!

The growth figures may not be staggering, but they are comfortably beating inflation, on a consistent basis. Boring, but stable.

The Global Equity is basically a Global Index Tracker.
The Growth Fund is managed balanced type fund with a high proportion in equities.

Using the RPS website and its planner tool you can play with the figures (perhaps paying a bit more per month into AVC BRASS), and you may find out you dont need to work to 67 after all!

Rolandtheroadie

greatkingrat wrote: »

The growth rates of 7.6% and 8% are annual growth rates, not total growth rates so the funds have done well, but so have most funds invested in global equities over the last 6 years.

Global Equity past 5 years are : - 2015 -3.2%, 2016 +11.2%, 2017 +17.9%, 2018 +11%, 2019 +1.7%. +7.2% since launch in 2013.

The 7.6% is from launch, not yearly. 2013 and 2014 were likely to have been - too.