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Money management

Budgeting is an important part of managing your money and taking a proactive approach to this will help you achieve your retirement goals. Looking after your finances in retirement is just as important as when you were working, if not more.

In this section, we explore ways of making your money go further, as well as some of the benefits you may be entitled to.

Know your budget

When you retire your income and outgoings are likely to change. Many people have less income in retirement than when they were working, depending on the amount of pension they receive and other savings and investments. The balance of your outgoings may also change in retirement too - for example you may have paid off your mortgage, but your energy bills may increase substantially. 

Signing up for online banking enables you to quickly and easily view and manage your finances - speak to your bank if you haven't got this set up. Compare your outgoings to your monthly pension to check if you are under, within, or over budget. Alternatively, you can examine your paper statements.

Set yourself a goal for money to put aside in a savings account for a special occasion or rainy day. This is also an opportunity to see what you spend and may highlight areas you could cut back on. By actively managing your finances, you’ll soon reap the rewards!

Seek out the best deals

There are many online services you can use to check whether you are getting the best deal available on your utilities and services e.g. your energy supplier, phone contract, or car insurance. 

For example, energy can be expensive and now you’re probably at home more, you could be feeling the pinch. Initial findings from the Competition and Markets Authority's (CMA's) investigation suggested that 70% of customers with the big energy firms could save more than £300 a year if they were to switch.

The big energy companies have pledged to make understanding how to switch easier for consumers. Before you switch you should check with your energy supplier to see if you will incur a penalty for switching before your tariff’s end date. You can use the energy supplier comparison calculator on the Which? website to find out whether it could be worthwhile switching.

Research extra benefits

Did you know that up to £3.7 billion worth of benefits go unclaimed each year? You could be one of the many people who is not claiming the benefits you are entitled to.

To help you make sure you’re not adding to the statistics, here are some of the main benefits you could be entitled to:

  • State Pension
  • Pension credit
  • Travel concessions, such as a free bus pass
  • Winter Fuel Payment
  • Free eye-tests
  • Benefits for people with a disability or those caring for a disabled person

If you need help to understand which benefits you are entitled to, the Age UK website may be useful. Alternatively, you can call the Age UK advice line on: 0800 169 2081.