gov.uk<\/a> website.<\/p>\nWorkplace pensions<\/p>\n
You may also have one or more workplace pensions or a private pension if you\u2019ve set one up. This could either be a defined benefit pension, based on how much you earned when you were working and how long you had signed up to the pension scheme, or the more common defined contribution scheme, where you and your employer pay into your pension pot. Your annual pension statement will show you how much money you\u2019re set to have when you stop working.<\/p>\n
How to boost your retirement income<\/p>\n
Track down lost pensions<\/p>\n
It\u2019s well worth checking to see if you have any lost pensions too. These are pots where a pension provider can\u2019t contact the account holder, usually because they have moved house or changed their contact details. It\u2019s estimated there is \u00a331.1bn in unclaimed pension pots in the UK and the Government has a free pension tracing service you can use to locate old pots.<\/p>\n
Savings and investments<\/p>\n
If you have savings accounts or investments, you may choose to use these as an income in retirement or to top-up your pension. You may also have assets like additional properties or you could own a business, which you could either take an income from or sell off and use the money to fund your retirement.<\/p>\n
How will you take your pension?<\/p>\n
It\u2019s up to you how you take your pension, you could even leave it completely until a later date, letting it grow and hopefully create more income for you when you do need to access it.<\/p>\n
You\u2019re allowed to take 25 per cent of your pot tax-free but after this it will count as a taxable income. <\/p>\n
Buying an annuity is another option, which guarantees you an income for the rest of your life and acts a bit like a salary with a monthly payment. <\/p>\n
A more common option is pension drawdown, where you take 25 per cent of your pension pot tax-free, and the rest of the money you can take out when you need it or choose to take it as a regular income.<\/p>\n
You don\u2019t need to choose just one option either, many people mix and match, and it\u2019s well worth seeking advice to find out the best solution for you and your retirement plans. <\/p>\n
![\"Offical](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2025\/10\/SEI_259675694.jpg\")
Planning your retirement budget can be difficult (Photo: Ceri Breeze\/Getty)<\/p>\n
What will you be spending money on?<\/p>\n
\u201cThe good news is that some expenses may reduce or disappear in retirement,\u201d said Pennells, as \u201cyou no longer need to pay for commuting, work clothing, or lunches out with work colleagues, which will free up some money and if your mortgage is paid off, that\u2019s another major outgoing gone too\u201d.<\/p>\n
However, as you\u2019re not working, you may be spending more in other areas, such as holidays, visiting friends, hobbies or health costs. Some of the main outgoings to consider include the following.<\/p>\n
Housing costs<\/p>\n
If you own your own home and you\u2019ve paid off your mortgage, this is a big sum of money for which you\u2019ll no longer have to budget. However, it\u2019s a good idea to have a savings account for unexpected housing costs, such as a broken boiler or a leaking roof. Choose an account paying interest but one where you can access your money without penalty if you need to.<\/p>\n
Household bills<\/p>\n
Your bills should be similar in retirement to when you were working, unless there have been any big changes, such as downsizing your property. Some essential ones \u2013 such as energy costs \u2013 may increase. If you\u2019re now home more in the daytime, you\u2019re probably going to be using more gas and electricity.<\/p>\n
Debts<\/p>\n
Many pensioners have debts to pay off, from mortgages to credit cards, and some use their tax-free lump sum to clear these. <\/p>\n
Travel<\/p>\n
You may not be commuting to work, so your travel costs are likely to be lower, but you\u2019ll need to budget for holidays, weekends away, or travel to visit friends and family members. <\/p>\n
Health<\/p>\n
As you get older, the risk of falling ill increases and, while we have a free NHS (and prescriptions for those aged 60 and older), if you choose to pay privately for health care these costs are likely to be higher than the amount you paid when you were younger and still in work.<\/p>\n
Insurance<\/p>\n
The amount you pay for insurance, from travel to health, increases with age because insurers put you at a higher risk of making a claim. However, specialist policies exist if you\u2019re being offered extortionate prices or denied cover because of age or a health condition. The British Insurance Brokers Association has a free directory of specialist brokers who can help you find a suitable policy.\u00a0<\/p>\n
![\"Little](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2025\/10\/SEI_248768164.jpg\")
Pension pots can improve if people take advantage of all the options (Photo: PM Images\/Getty)<\/p>\n
Are you claiming what you\u2019re entitled to?<\/p>\n
There are a range of benefits available for pensioners, to help with the cost of paying everyday bills when you\u2019re no longer working. <\/p>\n
Helen Morrissey, head of retirement analysis for Hargreaves Lansdown, said: \u201cIt\u2019s really important to make sure you are claiming everything you are entitled to. An example is pension credit which tops up the income of the poorest pensioners as well as acting as a gateway to further support. However, it remains much under-claimed which means people are missing out.\u201d<\/p>\n
Up to 880,000 pensioners could be missing out on this benefit, according to government figures \u2013 and it\u2019s worth up to \u00a33,900 per year. Once you start receiving it, you are also then eligible for a range of other benefits including the winter fuel payment, a free TV licence, the cold weather payment, free NHS dental care, and help with housing costs.<\/p>\n
Some of the main benefits you could be eligible for are listed here, although to check exactly what you may be entitled to you can use a free online tool, such as the one from turn2us (https:\/\/benefits-calculator.turn2us.org.uk).<\/p>\n
Pension credit<\/p>\n
Pension credit is for those with a low income and it tops up your weekly income to \u00a3227.10 if you\u2019re single or \u00a3346.60 if you have a partner. You may still be eligible if your income is higher than these figures, such as if you have a disability or care for someone.<\/p>\n
Cold weather payment<\/p>\n
If you\u2019re receiving pension credit you should get the cold weather payment. A payment of \u00a325 is made for every seven-day period when the average temperature in your area is recorded as, or forecast to be, 0\u00b0C or below.<\/p>\n
Council tax reduction<\/p>\n
You may be eligible for a reduction in your council tax if you live alone or have a low income. In some situations, such as if you\u2019re receiving the guarantee credit part of pension credit you may not have to pay it all. Contact your local council to find out what the eligibility criteria is in your area.<\/p>\n
Carer\u2019s allowance<\/p>\n
If you care for someone else for at least 35 hours a week and they receive benefits such as the daily living component of the personal independence payment (PIP) you may be able to claim \u00a383.30 per week through the Carer\u2019s Allowance.<\/p>\n
Attendance allowance<\/p>\n
If someone else looks after you because you have a disability or a severe health condition, you may be eligible for the attendance allowance. It\u2019s paid at two difference rates of \u00a373.90 or \u00a3110.40 per week if you have reached state pension age and you have a physical or mental disability or a health condition.<\/p>\n
TV licence concessions<\/p>\n
You can get a free TV licence (worth \u00a3174.50) if you\u2019re 75 or over and you or your partner receive pension credit.<\/p>\n
Take advantage or pensioner perks<\/p>\n
There\u2019s a huge range of discounts and deals available to pensioners, to lower your costs when you\u2019re no longer working, including the following.<\/p>\n
A third off train tickets<\/p>\n
A senior rail card is \u00a335 for a year or \u00a380 for three years and it entitles you to a third off train tickets during off-peak hours. Holders save an average of \u00a3112 a year, or \u00a35.25 a journey.<\/p>\n
Free bus travel<\/p>\n
In England, you can get a free pensioner\u2019s bus pass when you reach the state pension age and, in Wales, you can travel for free when you\u2019re 60, with a national entitlement card. Londoners can also get free travel with a 60+ Oyster card.<\/p>\n
Coach journeys<\/p>\n
You can buy a National Express senior coachcard for \u00a315, for example, which entitles you to a third off fares at any time on a coach journey.<\/p>\n
Days out<\/p>\n
There are discounted memberships for the National Trust, English Heritage, and the Royal Horticultural Society for pensioners along with cheaper entry fees at most museums and art galleries across the country. <\/p>\n
Free prescriptions<\/p>\n
No one pays for NHS prescriptions from the age of 60. You may still have to pay for some health services though, such as dental care.<\/p>\n
Theatre and cinema tickets<\/p>\n
Most of the big theatre and cinema chains in the UK offer cheaper tickets to seniors. Special screenings for those aged 60 and over are usually on a specific weekday. At Odeon, for example, its \u2018silvers with savers\u2019 tickets are \u00a33.50 when booked online.<\/p>\n
Gym memberships<\/p>\n
There are often cheaper membership prices for seniors, at Better Health for example you can sign up when you turn 66 and at Total Fitness you need to be 65 for the senior membership.<\/p>\n
What if you don\u2019t have as much as you thought?<\/p>\n
\u201cIf you are retiring with less than you had hoped, then budgeting will be all important. Keeping track of how much is going out as well as what is coming in will make an enormous difference and make you feel more confident about your money,\u201d said Morrisey.<\/p>\n
You could also consider deferring your state pension, continuing to work, or using your home \u2013 if you own it \u2013 as an income.<\/p>\n
Deferring your pension<\/p>\n
You won\u2019t automatically start getting your pension when you reach the state pension age. You need to decide when to start claiming it. If you\u2019re able to defer getting payments, that will increase your overall pot \u2013 however this is only a viable option if you have other funds to live on.<\/p>\n
A new career or returning to work<\/p>\n
A third of retirees have made the decision to go back to work because of rising living costs and 27 per cent said their pension was not enough to live on, according to research from Standard Life.<\/p>\n
It also found that 9 per cent of those aged 55 and over have decided to \u2018unretire\u2019 and are now actively looking for work again. The work you decide to do doesn\u2019t have to be what you were doing previously either, you could consider part-time work or a complete career change to suit your change in lifestyle. <\/p>\n
Downsizing your home<\/p>\n
Selling your home and moving to a smaller property is one way to raise extra money to fund your retirement. This can also be a benefit if, for example, you live in a large house but no longer need so much space \u2013 a smaller home might be more manageable. However, this is a big commitment and there are other costs to consider, such as the fees attached to selling one property and buying another including stamp duty and legal costs. Releasing equity in your home is another potential option too.<\/p>\n","protected":false},"excerpt":{"rendered":"From pensions and savings income to free prescriptions, cheap train tickets and cinema screenings – here’s how to…\n","protected":false},"author":2,"featured_media":219928,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[64,63,99,186,4363,184,185,1793],"class_list":{"0":"post-219927","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-au","9":"tag-australia","10":"tag-business","11":"tag-finance","12":"tag-pensions","13":"tag-personal-finance","14":"tag-personalfinance","15":"tag-retirement"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/219927","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=219927"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/219927\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/219928"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=219927"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=219927"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=219927"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}