Supporting you to make the right the decision for you

Whether you’re getting ready to take your pension account, or only just starting to think about retirement, you have more control over your savings in the DHL Group Retirement Plan than you might think.

With the pension flexibilities, you can make your money work for your personal situation and your plans. You have a series of choices to make and this website can help you think about what might be right for you.

Watch our quick start video

Get a quick overview of all of your available options. Our video will help you explore your options with confidence.

There's more to retiring than you might think...

Here are your options at a glance – these benefits are all provided outside the Plan

Buy a regular income for life (an Annuity)

At a glance

 Optional tax-free cash lump sum of up to 25% of your benefits

 Select the level of benefits and cover you need to match your priorities

 You'll need to shop around to get the best deal

By buying an annuity, you’re able to tailor a regular, guaranteed retirement income to suit your circumstances.

For example, you’ll be able to decide whether you want to include an income for your spouse or civil partner after you die and whether you want your income to increase over time or remain level. You may also be able to get a higher income if you are in poor health or are a smoker.

Learn more by reading our factsheet

Buying an annuity is a bit like buying car insurance – different companies offer different rates. So you may be able to get a higher income by shopping around. This is often referred to as an ‘Open Market Option’. You can shop around yourself, or you can use an annuity comparison service. The Trustee have appointed HUB Financial Solutions to provide a comparison service for members of the Plan.

Once you have bought an annuity, you can’t change the shape of it or change the provider, so it’s worth taking the time to choose the right one.

61% of those who purchased an annuity in 2017 were entitled to a higher income due to health of lifestyle factors. Could you be entitled to more?

Learn more

Transfer out and choose to withdraw savings as and when you need to

At a glance

 Optional tax-free cash lump sum of up to 25% of your transfer value

 All savings go to a spouse or dependent on death before age 75

 You'll need to make sure your money lasts as long as you need it to

By investing your retirement savings into a Drawdown arrangement you’ll have the flexibility to withdraw taxable cash, as and when you need it, throughout retirement.

However, you’ll be responsible for managing your savings, including choosing which funds to invest in.

Learn more by reading our factsheet

The Plan doesn’t offer Drawdown directly. So if you want to use Drawdown you will need to transfer into a pension arrangement which does offer this. You could choose to move to LifeSight, which the Trustee can put you in contact with as a way of accessing a Drawdown option, or you could choose to find your own Drawdown arrangement to meet your needs as LifeSight may not be the most appropriate option for everyone. There are many different ones available. Once you start to withdraw any taxable income from your Drawdown account, the amount you (and your employer) can save into a defined contribution pension in future, without incurring a tax charge, reduces to £4,000 a year. So, if you are planning to save into a pension in future you’ll need to take this into account.

The average life expectancy for a 65-year-old man is 84 and the average life expectancy for a 65-year-old woman is 86

Learn more

Take it all as a single cash lump sum from the Plan or in stages if you transfer out

At a glance

 Take all of your benefits as a cash lump sum

 You'll be taxed on 75% of the amount you take, possibly at a higher level than you're used to

 No guaranteed income for your retirement

By taking your retirement savings as cash you’ll be taking all of your retirement savings at one time as a single lump sum.

Up to 25% of your lump sum may be paid tax-free, but you’ll pay tax on the remainder. Potentially this could push you into a higher tax bracket as your income is not spread out.

You will be responsible for making your money last.

Learn more by reading our factsheet

Once you take a taxable cash lump sum, (unless it’s a ‘Small Lump Sum’) the amount you and your employer can save into a defined contribution pension in future, without incurring a tax charge, reduces to £4,000 a year. So if you are planning to save into a pension in future you’ll need to take this into account.

The Treasury estimated that it took an additional £1.1bn in tax over the 2016/2017 tax year from people either taking their whole accounts as cash or withdrawing savings from Drawdown. Make sure you don’t pay more tax than you need to!

Learn more

Which Option is right for you? - Compare your options

Mix-and-match your options

Should you wish to, you can mix-and-match from the options above.

For example you can take some cash up front, buy an income for life to cover the basics and draw down the rest. It’s entirely your choice. Remember you will need to transfer out of the Plan to a Drawdown provider to select this option.

You should speak to a Financial Advisor if you are considering this.

How much is enough?

For a basic standard of living, a retired single person needs £14,409 a year (or £1,201 a month)*

For an average retired couple it’s £20,444 a year (or £1,703 a month)*

*Source: Minimum Income Calculator – November 2019 (latest release): minimumincome.org.uk

Having a target income to aim for is always useful. The Minimum Income Calculator allows you to work out what you might need to cover things like food, clothes, utilities and travel. This may help you think about how much you may need to live on, but do bear in mind, this is a minimum, you’ll need a little more for the niceties.

Try the Minimum Income Calculator

Mix-and-match your options

Compare options side-by-side

*If you have a shorter life expectancy you are likely to be entitled to a higher regular income

Making your decision

Now that you’ve considered your priorities and explored your options, you might be ready to make a decision.

Your retirement savings will need to support you through retirement, which for some people could be more than 30 years. It’s important you consider all your options carefully and make the right choice for you.