It has been a busy period for the Scheme since the last winter newsletter and, particularly in recent months, there has been considerable market turmoil. Despite the recently announced cap on energy prices, personal finances and living standards in the UK are also being squeezed from every direction. Read on for tips on how you can deal with the rising cost of living.

Make a budget

Knowing exactly how much money is coming into your household is the first step towards being able to budget accurately. Check whether you could cut back on any non-essential outgoings – even if it’s just temporarily.

Get help if you’re struggling

MoneyHelper offers free and impartial guidance about money and pensions. Visit MoneyHelper or call 0800 138 7777.

Citizens Advice has a list of grants and schemes that you may be able to use to help with your bills and can advise you how to reduce your living costs. Visit their website or call 0800 144 8848.

How much money will you need in retirement?

The Pensions and Lifetime Savings Association (PLSA) has calculated the income they believe is needed to achieve the three following standards of living.

These figures will be subject to change in the future, as the cost of living increases.

These standards show what range of common goods and services you would be able to afford at each level. You can find out more about the PLSA’s Retirement Living Standards on their website.

When calculating your projected retirement income, remember to include any other pensions you have. Don’t forget to include the State Pension, which is payable from your State Pension age. To get a forecast of your State Pension, go to the Government website.

Use the Scheme modeller to get an estimate of what your benefits may be worth when you retire. If you think you’re not on target, and you’re an active member you could consider increasing the level of contributions you are making. Visit the Contributions page to find out more. Remember Babcock will match your contribution rate to a maximum level but you can still pay in more. Your HR representative can confirm the maximum rate Babcock will pay.