Are you one of those people who uses a Railcard to travel, so you can save a third of the cost? Or do you perhaps use a reusable cup for your coffee so you save 40p on a flat white?
If you like being smart with your money but you don’t really know much about your pension, you may want to take a look at how much money is going into your pension each month. When you contribute a percentage of your pensionable salary to your pension, DXC (the Company) matches it to a certain extent. But, if you've been auto-enrolled and you're in the default arrangement (4%), you’re missing out on extra money being paid into your account from the Company.
That’s 2% more of your pensionable salary that you could be receiving in your pension, and remember – each percentage point counts as it’s invested and grows with the help of compound interest over several years.
| Employee contribution | Employer contribution match | Overall pension contribution |
|---|---|---|
| Employee contribution Opt-out | Employee contribution N/A | Overall pension contribution N/A |
| Employee contribution 3% | Employer contribution match 3% | Overall pension contribution 6% |
| Employee contribution 4% | Employer contribution match 4% | Overall pension contribution 8% |
| Employee contribution 5% | Employer contribution match 5% | Overall pension contribution 10% |
| Employee contribution 6% | Employer contribution match 6% | Overall pension contribution 12% |
You can pay additional contributions into your pension over 6% as well, however, the maximum limit DXC will match is 6% employer contributions.
How much is enough?
That’s a difficult question to answer, and depends on your individual circumstances and needs. However, the Pensions and Lifetime Savings Association (PLSA) have done the calculations for us and come up with Retirement Living Standards. These are based on research and have been developed to help you picture what kind of lifestyle you could have in retirement. The amounts shown would fund a lifestyle for people living outside of London, are after tax, and are based on a variety of assumptions. For many people their workplace pension(s), State Pension, and other benefits could go a long way towards these costs.
| Minimum | Moderate | Comfortable |
|---|---|---|
| Minimum
If you’re single: £10,900 a year |
Moderate
If you’re single: £20,800 a year |
Comfortable
If you’re single: £33,600 a year |
| Minimum For a couple: £16,700 a year |
Moderate For a couple: £30,600 a year |
Comfortable For a couple: £49,700 a year |
|
Minimum Covers all your needs, with some left over for fun. You could holiday in the UK, eat out about once a month and do some affordable leisure activities about twice a week. |
Moderate More financial security and flexibility. You could have one foreign holiday a year and eat out a few times a month. You’d have the opportunity to do more of the things you want to do. |
Comfortable More financial freedom and some luxuries. You could have a subscription to a streaming service, regular beauty treatments and two foreign holidays a year. |
|
Figures shown in the table are based on a variety of assumptions and these should be taken into consideration when using this guide. |
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Log in to take a look at your recent benefit statement and see how your projected savings compare to the Retirement Living Standards.