70 years ago, it may have been possible to buy an entire home for £3,000. Today, £3,000 will not stretch as far; a fact that a lot of people are all too familiar with.

Inflation is the measure of an increase in the average cost of a basket of goods. For example, where inflation is 6% over a year, this means the cost of goods and services you pay for has increased by 6% over the year. Continued increases in inflation over time affect how much the pound in your pocket is worth and as a result, what you can buy with it.

We're in a race to match the rate of inflation and while it could go down, it's important to understand the impact of inflation on your pension savings and the measures you can take to combat it.

You're not alone…

• If you struggle to understand pensions and investments: pensions can be difficult to understand even for the most seasoned veterans. Are you burying your head under the sand?
• Retirement can last for more than 20 years or more depending on when you retire and how long you live. Before you give up work you need to make sure you'll have enough money to live on throughout your retirement.
• Prices tend to rise over time. So, if you want to maintain your standard of living you need your retirement income to keep pace with inflation.

Consider…

• Setting a goal: whether retirement is a long way off or just around the corner, it's good to know where you're heading. Your pension forecast on the ePA homepage (after you log in) is a useful guide to help you see how your savings in the Plan are building up. It shows how much you could get if you used your savings to buy a lifetime annuity.
• Saving more into your pension account if you can afford it: if you want to increase your contribution rate, you can do so at any time on DXC Select. Remember, contributions to the Plan are tax efficient, so you may find that increasing your contributions costs less than you think. Historically, pension savings have increased at a better rate than bank savings meaning you may get more from the money you invest for your future.
• Reviewing your investments: where you choose to invest your pension savings, both in the years before and leading up to retirement, will affect the value of your savings. Even if you're not a confident investor, it's important that you understand the basics of investing so that you can choose the investment route that is best suited to your personal circumstances now, and as they change in future. Use the handy Investment Guide to learn more.
• Taking a few minutes to browse your pension administration site ePA: there are dozens of resources designed to help you understand your pension better as well as helpful resources such as your DXC Pension Plan member guide and contacts for when you need more help.