Making your retirement finances work for you; tips and tricks to help you savePosted on: 25 February 2020 by Key Equity Release
If you want to save and make the best of your retirement finances, here’s few ideas and resources to help.
With retirement comes big changes in your expenditure and income. Your well-earned rest arrives as you let go of your salaried income and your pension comes into play. After your working life has ended, it’s helpful to assess the best ways to save and spend. Here are a few tips to give you a great starting point.
Are you claiming all your pension entitlement?
If you’ve worked in several workplaces over your career, you may still be entitled to pension plans that you have long-since forgotten about. You can use the Pension Tracing Service to help track down lost or mislaid policies.
Check you’re getting the best deal with your providers
You can save extra by making sure that you’re getting the best deal with your energy and broadband providers. You can find some great deals on one of the many price comparison sites.
Many broadband providers offer an introductory offer for the first 18 and 24 months of your contract, which often comes as up to £15 cheaper than their usual monthly charges.
You can also join a cashback service such as Quidco, who post regular offers from providers and can give you good cashback deals after you sign up.
Check your benefits
In addition to your state pension, you may be entitled to other benefits, depending on your savings or level of income.
If you were born before 5th April 1954, you could be entitled to a tax-free Winter Fuel Payment (correct for 2019/2020), and the amount will depend on your age and those who live in your household. You should receive it automatically if you are eligible.
You may also be eligible for a Cold Weather Payment. You will receive £25 if the temperature is recorded as 0 °C over 7 consecutive days.
Freebies and concessions
There are also many free and concession priced perks for those aged 60 and over. For starters, bus passes are available across the UK which entitle you to free off peak travel (from 9.30am - 11.00pm Monday-Friday, all day Saturday, Sunday and Bank Holidays). The age you can apply for the bus pass can vary, depending on where you live. If you live in Scotland, Northern Ireland, Wales or London, you can apply from age 60. In other areas, the age for application is the current state pension age for female claimants. Bus passes are managed by different organisations across the country, so contact your local council to find out what’s available in your area and apply.
Similarly, Senior Railcards are available for people aged 60 and over which offers a third off tickets (including advanced, off peak and first class). The pass costs £30 a year and you can buy yours at any staffed National Rail ticket office.
For both your bus and rail card, you will need to provide proof of eligibility on your application. Your local council office and the National Rail ticket office will be able to advise you on what to provide which may include the following:
- Birth Certificate
- UK Driving Licence
Over 60’s are entitled to free prescriptions and sight tests. It is worth heading into your local high street opticians to find out their current offers. You may also be entitled to free NHS dental treatments,Museums, cinemas and sports venues across the UK often offer concession prices for seniors.
Could your home be a source of income?
If you are a homeowner, you may be able to release some of the cash from your home to help fund your retirement with equity release. You could release a lump sum or, following an initial lump sum, drawdown smaller amounts with a lifetime mortgage, which is the most popular form of equity release.
Key Equity Release offer Lifetime Mortgages only, which is a loan secured against your home. Typically there are no monthly repayments as the loan plus roll-up interest is repaid when the plan comes to an end following death or entry into long term care. Remember equity release will reduce the value of your estate and may affect your entitlement to means-tested benefits.
If you’d like to know more about equity release, you can read more here or request a free guide or call 0808 208 0963.
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