Managing your money
When you retire, it's likely that you'll switch from being a saver to a spender. Now that your income is likely to be limited to the savings you built up while you worked, budgeting is an even more important part of managing your money.
In this section, we look at ways of making your money go further, as well as some of the benefits you may be entitled to.
Knowing your budget
When you retire your income and outgoings are likely to change. You may find that you have less income than you did when you were working, depending on the amount of pension you receive and any other savings and investments you might have. While your outgoings may decrease — you may have paid off your mortgage — your energy bills may increase because you're at home more often.
Signing up for online banking allows you to quickly and easily view and manage your finances — it's easy to set up, simply get in touch with your bank. Compare your outgoings to your monthly pension to check whether you're under, within, or over budget. Alternatively, you can examine your paper statements.
If you can afford to, set yourself a savings goal for a special occasion or rainy day. This is also an opportunity to see what you spend your money on and may highlight areas you could cut back on. By actively managing your finances, you'll soon reap the rewards!
Seeking out the best deals
Use price-comparison websites to check whether you're getting the best deal available on your energy, phone, or car insurance.
Although switching energy suppliers is easy, with the market in crisis at the moment, now is probably not the time to, according to Money Saving Expert.
Instead, try to lower your bills by reducing your consumption through turning appliances off rather than leaving them on stand-by, draught-proofing doors and windows, and turning off lights whenever you leave a room.
The Energy Saving Trust has more tips.
Researching extra benefits
More than £15 billion goes unclaimed from the Treasury each year — that's over 7 million UK households missing out on benefits they're entitled to.
To help you make sure you're not one of those, here are some of the main benefits you could be entitled to:
- State Pension
- Pension Credit
- Travel concessions like free bus passes
- Winter Fuel Payment
- Cost of Living Payment
- Free eye tests
- Benefits for people with a disability, or those caring for someone with a disability
Find out more
Age UK benefit entitlement guidance — understand which benefits you're entitled to.