How much is enough?

Whether it’s enjoying more quality time with friends and family or doing something ambitious like travelling the world, retirement can be a fulfilling and rewarding time of life. But only if you save enough! Some of your costs may reduce, like not having to travel to work, but you’ll have more leisure time and will probably want to spend more on doing some things you enjoy doing.

You need a clear target so you don’t find yourself short of money later on in life. The Retirement Living Standards – published by the Pensions and Lifetime Savings Association (PLSA) – show you what life in retirement looks like at three different levels of income.

According to the Retirement Living Standards, roughly speaking, a single person will need at least £10,900 a year to achieve the minimum living standard. £20,800 a year is moderate, and £33,600 a year is comfortable. For couples it’s £16,700 - £30,600 - £49,700.

Your DHL pension, State Pension, and other pensions and savings will all help towards the retirement living standard you want.


Everyone’s circumstances will be different and these Standards are meant to build awareness and understanding. Find out more about what minimum, moderate and comfortable lifestyles look like on the Retirement Living Standards : Retirement Living Standards.

If you fancy doing a bit of your own budget planning, you can try out the minimum income calculator:

minimumincome.org.uk or the more in-depth budget planner from Money Helper:


How much do you think you'll need?

The State pension should cover some of the basics in retirement like housing, utility bills and groceries, but it may not cover other essentials like clothes, travel costs and your mobile phone.

Your DHL pension is a great way to save for these essentials and the little extras you might want in retirement.

Do the maths

Once you've got a figure in mind, you need to work out how much you'll need to save over your working life. Let's say you want £20,000 a year and you'll retire at age 67. If you get the maximum State pension, you'll currently need around £450,000 of savings to provide the remaining £11,500 a year. This estimate is for illustration only. It is based on our understanding of current rates for an index-linked annuity with a spouse’s pension payable on death; so, these rates will change over time.

Did you know?

Currently, you can take your savings from the Plan any time from age 55.

To start your retirement planning, you may wish to consult an online Pension Calculator. Use MoneyHelper’s pension calculator to understand how much you need in retirement, and how much you’re going to have.