Retirement timeline
To help you understand how long the retirement process can take and the steps involved, we have put together this timeline for you to use as a guide. It is important that you start thinking about and planning for your retirement as early as possible. If you have a date in mind that you wish to retire by, make sure you have started the process early enough to meet your goals.
Make the most of your pension contributions
- Can you pay in more to your pension savings? It might be worth looking at how much you are currently paying in each month and checking to see whether you could pay any Additional Voluntary Contributions (AVCs) to boost your pension savings for when you retire. To find out more about AVCs click here.
Track down any lost pensions
- If you have changed jobs during your career or ever saved into a personal pension it is likely that you will have multiple pensions. It is easy to lose track of these. At this stage it is a good idea to track down all the pensions you might have.
- Contact each pension scheme to find out what your savings could be worth, and at what age you can start to access them. If you have lost contact with any schemes, you can use the Pension Tracing Service. Find lost pensions.
Start thinking about your retirement options
- As a member of the RS Group Pension Scheme there are a few options available to you when it comes to taking your pension. Whether that be taking your full pension from the Scheme, taking the maximum tax-free cash lump sum along with a reduced pension each month, or transferring your pension elsewhere after having taken independent financial advice to do so.
- You can find out more about the ways to receive your DB pension on the MoneyHelper website.
10 years before retirement
Decision on Retirement Age
- Decide on the age at which you want to retire. This may depend on individual circumstances, financial considerations, and health.
- You can read here about early retirement or ill health retirement.
Check pension and State Pension entitlement
- Review the savings you have.
- Review your pension statements to understand the size of your pension pot from different employments.
- Check your State Pension entitlement with the government.
Budget planning
- Start thinking about how much you will need at retirement. You can use MoneyHelper's useful budget planner to get an idea for how much the lifestyle you would like in retirement would require.
If you are interested in taking your pension and you would like more details about how much you might get at your chosen retirement date, you will need to contact the Administration Team at Capita to request a retirement quote using the details on the Contact us page.
Please note that we can only provide estimated retirement quotes up to five years before your chosen retirement date. You can also only request two retirement estimates a year from the Administration Team at Capita.
It is also worth thinking now about whether you would like any financial advice to help you plan ahead.
5 years before retirement
You will be contacted by the Administration Team at Capita to see if you still intend to retire on your planned retirement date. If you decide you want to retire later, they will issue you with a Late Retirement Consent Form to complete.
If you want to proceed with your planned retirement, the Administration Team at Capita will send you a pack with details of your retirement options (either at your request or automatically as you approach the Scheme’s Normal Retirement Age). You should select the retirement option that best suits you and send your completed forms back to them with any other documentation they request in your retirement pack.
If you are at all unsure of what options you should take regarding your retirement, we recommend you take professional financial advice. You can find an Independent Financial Adviser (IFA) here.
6 months before retirement
The Administration Team at Capita will send you a pack with details of your retirement options (either at your request or automatically as you approach the Scheme’s Normal Retirement Age). You should select the retirement option that best suits you and send your completed forms back to the Administration Team at Capita with any other documentation they request in your retirement pack.
Once you start receiving your benefits you will be able to log in to your online account to view your payslips and P60s. Much like when you are employed, you will be provided with payslips and P60s when you start receiving your pension. A P60 will show you how much tax you have paid on your pension in the tax year and your payslip will show you how much you have been paid each month.
How to start planning
When it comes to planning your life after work, we understand that it can be quite daunting and you might struggle with where to start. There are lots of things you can do to prepare yourself for life in retirement, such as working out what you've got saved already, what you'll need and what you want your retirement to look like.
Working out what you’ve got
Whether you’ve got savings through an employer’s pension or a personal one, the first step is to work out what you’ve got and where.
Start by reviewing the amount you have in your RS Group pension. You can log in to your online pension account to view your current total pension. This will give you a good starting point for how much you currently have saved.
Review your pension
Check how much you might get from your State Pension. You’ll get a regular amount of State Pension each week and this generally increases every year in line with inflation. This will form part of your regular retirement income so it’s good to know how much you can expect to receive.
Check your State Pension forecast
Find out if you have any other pensions with previous or current employers. If you know of other pensions you’ve paid into in the past, make sure you locate these and factor any extra pension savings you have into your retirement planning.
Find other workplace pensions
Include any other savings or income you may have. When calculating how much you will have at retirement you should include any money you have in personal savings accounts or any income you still expect to be receiving once you have retired. This could include rental income or any part time work you might continue or take up.
Working out what you’ll need
Once you’ve figured out how much you’ve already got saved up, you need to work out if that will be enough to support the retirement that you want to have. It’s a good idea to ask yourself some questions about the life you’ll be living once you finish working.
Questions to ask yourself:
- What will you no longer need to pay for?
- What will you have to pay for that you don’t spend money on now?
- Are there any things you would like to do you once you’re retired?
It's useful to use a pension calculator to get an estimate of the income you'll need when you retire.
MoneyHelper provide a free pension calculator that you can use on their website.
Calculate your pension
Other things to think about
Now you have an idea of what you have and what you think you’ll need, it's a good idea to make a plan for this.
Here are some things you’ll need to think about:
- When would you like to retire? This may depend on individual circumstances, financial considerations, and health.
- What kind of lifestyle will you want to live? For example, are there any big trips you would like to go on or any big purchases you're planning on making?
- Will you have any debts that you won’t have paid off when you retire? It’s important to try to start your retirement with as little debt as possible. As your income is likely to go down when you retire any extra fixed payments you’ll need to make is something you should consider.
Ill health, early or late retirement
Ill health retirement
Ill health can significantly impact your retirement plans, and the Scheme offers provisions for individuals facing qualifying health challenges. If you experience ill health, you may be eligible for early access to your pension. The specific criteria for ill health retirement may vary between different pension schemes you are a member of, but generally it involves demonstrating that you are unable to work due to your health condition.
Please refer to the Scheme information section on your online pension account.
Early or late retirement
Opting for early retirement allows you to access your pension sooner but may result in lower pension payments. On the other hand, delaying your retirement could lead to an increased pension. It’s essential that you carefully evaluate your financial situation, health and lifestyle to make an informed decision aligned with your retirement goals.
The minimum age at which you can access your pension is 55. This is known as early retirement. Be aware your pension may be subject to early retirement reduction if you retire at this age. Please note that this minimum age will be increasing to 57 in 2028 and thereafter it will be 10 years before the State Pension age.
The Scheme’s Normal Retirement Age is 65. This is the earliest age you can take your benefits from the Scheme without any early retirement reduction. Some members may have a different Normal Retirement Age.
You can continue to contribute to the Scheme for as long as you are employed, regardless of your age.
If you are approaching age 55 or over, you can contact the Administration Team at Capita for an estimate of your pension options.
If you are still working for RS and wish to retire from the Scheme you can read the HR policy for further information on how to do this. This can be found on the HR A-Z on the RS intranet site.
Budget planner guidance
Budget planning is incredibly valuable when it comes to effective retirement planning. Assessing your current financial situation will allow you to identify areas for potential savings, and help you set realistic retirement goals. You should think about the type of lifestyle you want to have when you retire.
Consider the following questions:
What do you want your retirement to look like?
How much will this
cost you?
How long will your money
have to last?
Remember, your full pension could consist of income from multiple schemes, savings accounts, investments and the State Pension.
By understanding how much money you need to achieve the retirement lifestyle you want, you can check whether your current pensions savings, and any other sources of income you’ll have at retirement, can support this. Taking a proactive approach early will enable you to make informed decisions about your current pension contributions and how you choose to invest them. It will also help you understand if you need to make any lifestyle adjustments to support your move towards a more secure financial future.
If you would like to view a forecast of the likely pension income you might get when you come to retire or see how your retirement age may affect your income, you can use MoneyHelper's useful pension calculator.
Your options
There are different options to consider when taking your pension benefits including tax free lump sums, income, and annuity purchases. We’ll go into more detail about your options below:
Defer
taking your
pension
You may decide to delay taking your pension while you decide on the best course of action. If you want to retire after Normal Retirement Age (NRA), you’ll need to complete the Late Retirement Consent Form for the Trustee to approve. It’s important that you do this well in advance of your NRA as the Trustee may not agree to you retiring late after this date.
Taking a regular monthly pension from the Scheme
You may choose to take all of your benefits as a regular monthly pension. This will be paid for the rest of your life. These payments are increased each year and there may be certain death benefits payable upon your death.
Take a reduced
pension and a
tax-free lump sum
You are eligible to take some of your pension savings as a tax-free lump sum. Your remaining pension benefits will then be used to pay you a regular monthly pension going forward. The monthly payments will be lower than if no tax-free lump sum was taken. This lower regular pension will still be paid monthly, increased each year, and subject to the same death benefit rules as if you had not taken the tax-free lump sum.
Take a small,
one-off lump
sum payment
If the total value of all your pension savings is less then £30,000, you may have the option to take your benefits as a small, one-off lump sum payment. This is sometimes known as a Trivial Commutation Lump Sum. In this option, you receive a one-off payment from the scheme and no further pension or death benefits are payable. Please note, this payment can only be made providing you meet the conditions detailed on the Trivial Commutation Small Lump Sum Form.
Transfer
your
pension
You may be able to transfer your current pension to another provider. This depends on the Scheme rules relating to your section and you’ll have to take independent financial advice before you can transfer out if your benefits are valued at £30,000 or more. To explore this option, you will need to complete a Transfer Request Form for a quote and more information. It’s important to make sure the benefits you expect to receive remain protected if you choose to transfer your benefits to another provider.
Getting quotes
If you still work for RS and you’ve made your decision to retire, you should initially talk to your manager to agree the details. Once agreed, you must give your employer written notice as detailed in your employment contract.
When the Administration Team at Capita receive notification of your retirement from your employer, or you’ve confirmed the date you wish to take payment of your deferred benefits, they will send you an estimate of your benefits and retirement application paperwork.
Your estimate will include details of the pension you’ll receive and the options available to you if you wish to convert some pension into a tax-free lump sum. You’ll then need to make decisions on the amount of pension you wish to convert to a cash lump sum.
Please remember that you can only be provided estimated retirement quotes up to five years before your chosen retirement date and you can only request two retirement estimates a year from the Administration Team at Capita.
Once you know when you want to retire, you should ensure your application is completed and returned six months before your proposed retirement date.
It’s important that you fully complete all the forms that are sent to you, as any omissions could result in a delay in the payment of your benefits. When the Administration Team at Capita receive all relevant documentation from you and, if you are still at RS, your pensionable pay figures from your employer’s payroll department, your pension benefits will be calculated. Confirmation of the actual amount payable will be sent to you. The benefit calculations will take into account any extra years and pension that you may have purchased or been awarded by your employer.
Once all paperwork has been processed and your benefits have been calculated, your pension will be paid directly into your bank account on the last working day of each month for the rest of your life.
If you have built up any Additional Voluntary Contributions (AVCs) with your RS Group Pension, you'll need to contact L&G.
In addition to your RS Group pension, you'll also receive the State Pension. This is a regular payment from the government and most people can claim this when they reach State Pension age. Your State Pension age depends on when you were born, but for most people is now age 66.
However, it is gradually rising to age 67 for anyone born after 6 April 1960 and to age 68 if you were born after 6 April 1977.
The amount of State Pension you’ll get depends on how many qualifying years of National Insurance payments you have. This includes National Insurance contributions that you pay when you are working and contributions that are credited to you when you are unable to work. The most you can get from the State Pension is currently £221.20 per week (2024/25).
MORE ABOUT THE STATE PENSION
Getting guidance and advice
Pensions can be a very complex subject and it's important that you have all the information you need when it comes to taking your pension, so you can make informed decisions on what's best for you.
You can choose whether you receive guidance or advice to help you and it's important to understand the difference between the two. As a gereral guide, guidance will suggest what you could do whereas advice will recommend what you should do. When it comes to your pension, only a Financial Conduct Authority (FCA) regulated adviser is authorised to give you advice.
Getting guidance
There are lots of resources to help you at whatever stage you’re at with your retirement planning.
MoneyHelper brings together a number of helpful services, including Pension Wise, which can provide guidance around your pension savings, but also wider financial issues like debt and savings.
Pension Wise is a government service that offers free, impartial pensions guidance about your defined contribution pension options. An appointment will help you understand what your overall financial situation will be when you retire. It will focus on your options to help you make the right decision for you, and also allow you to find out about the other factors you need to consider when deciding on your options before retirement. During a Pension Wise appointment, an independent pension specialist will:
- explain your pension options
- explain how each option is taxed
- tell you what your next steps are
If you are not taking regulated financial advice, we strongly recommend that you book an appointment with Pension Wise to discuss the options available to you. The appointment will take between 45-60 minutes and can be over the telephone or somewhere local to you.
These appointments can be booked online directly with Pension Wise, or you can call them on 0800 138 3944 to book an appointment.
Book your Pension Wise appointment online
Getting advice
If you think you’d like to receive personalised financial advice, you will need to get in touch with an Independent Financial Adviser (IFA).
The Trustee, RS and Capita, the Scheme's Administrator, cannot provide you with any financial advice when it comes to your benefits within the Scheme.
An IFA can look at all your financial arrangements and provide you with personalised advice to help.
You should bear in mind that an adviser will charge for their services, but that expense might be worth it in order to ensure you’re making the best decisions for your future.
Find an Independent Financial Adviser
All financial advisers are regulated by the Financial Conduct Authority (FCA), so they must follow strict rules when they give you advice.
Make sure your adviser is registered before you start planning.
Check if an adviser is on the Financial Services Register
What you can do to increase what you have
You’re already making valuable contributions for the future by paying into your RS Group pension, but you might find that on top of your RS Group pension savings and your State Pension you would still like to save more to have enough for the retirement you want.
Even though you’re already paying in each month to your pension, alongside employer contributions from us, boosting your contributions by paying in extra might be the most convenient option for you. This would be referred to as paying Additional Voluntary Contributions (AVCs). AVCs are paid into the L&G Mastertrust. For more information go to the L&G Mastertrust website.
You’re able to check the amount of State Pension you are set to receive on the government’s website. By reviewing your expected State Pension amount you might find that there are gaps in your National Insurance record and may be able to pay in Voluntary National Insurance Contributions to increase your State Pension amount. Check your State Pension forecast.
It might be that if you’ve changed jobs several times over the years and there could be old pensions that you’ve lost track of. If you’re looking for a lost workplace pension and know the name of the employer or scheme you can use the Pension Tracing Service via the government website. If not, they also offer a service to find the pension contact details you might need. Find pension contact details or contact the Pensions Tracing Service.
If you would like to know more about what to do with the money you have saved, you can speak to a regulated adviser who will go through their fees and charges with you before you commit. Find a financial adviser.