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!

You need a clear target so you don't find yourself short of money later on in life.

£14,409.72 a year according to the Centre for Research in Social policy minimum income calculator says will provide the minimum decent standard of living in retirement. But you’ll probably want more than this.

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 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, in current investment conditions, you'll need around £450,000 of savings to provide the remaining £11,500 a year.

It sounds a lot, but remember if you're an active member DHL pays in too and over time investment returns can help your savings grow. So not only can you get investment returns on your contributions, but you get further returns on your investments, so you are getting interest on your interest.

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 Retirement Planner. As an example of what we mean by a Retirement Planner, we have provided a link below to one provided by Legal & General. This is for illustration purposes only and is just a tool to help you think about how much you might need to save for retirement.

Start your retirement planning

By clicking ‘Start your retirement planning’ to access the site, you agree to the terms and conditions: