8 money-saving tips for seniors
Retirement is a well-earned chance to relax and enjoy the fruits of your labour. But for many of us, it also means living on a fixed income, so keeping an eye on outgoings is important. By following our eight easy ways to cut your costs of living and save money in retirement you can enjoy life to the full whatever your income.
Saving money in retirement is about strategic choices that make the most of your money: planning ahead, taking advantage of pensioner benefits, and making mindful spending decisions. Read our money-saving tips for retirees below:
1. Plan ahead before you retire
Saving money in retirement all starts with a plan. Taking the time to create a financial retirement plan will help you understand what you can and can’t afford, ensuring you don’t exceed your monthly budget.
Start by reviewing your current finances in detail. Take an afternoon (or longer) to sit down and review your bills from the last three months, including mortgage payments, monthly direct debits, standing orders and any other personal expenses as well as your pensions and savings.
Doing this will help you build a clear picture of exactly how much money you’ll need each month when you retire. Be sure to include any benefits pensioners can claim. You may be pleasantly surprised by the amount you’ll save on travelling to work too!
Once you know how much money you’re currently spending and how much you'll have in your retirement, you should cross-reference the figures. This will let you know whether you can meet your financial needs comfortably or if you’ll have to make savings. This is also a good time to check if you can get better deals from suppliers e.g. cheaper TV packages or phone contracts.
2. Clarify how and when you’ll receive your pension
Your pension is likely to provide a substantial amount of your retirement income. Whether you’ve built up a private pension or are relying on your State Pension, you’ll need to make some important decisions on how and when to claim it. You should get professional advice to ensure you maximise how much you’ll have to live on. Talk to Pension Wise or find a regulated independent financial advisor.
3. Consider downsizing your home
Downsizing your home usually means lower utility and energy bills and fewer maintenance costs. Ideally it should also mean a move to a home that is easier to look after, giving you more time to spend on enjoying your retirement. If you own your property, selling your home in favour of a smaller one can provide a substantial financial cushion for retirement.
All of our retirement apartments and bungalows have been designed specifically for retirees—complete with luxury details and thoughtful flourishes to make life more comfortable as you get older.
4. Claim over 60s discounts
Once you reach 60, there are various discounts available to help make your money go further. You can get discounts at cinemas (such as the Odeon’s Silver Club), theatres, gyms and sports centres and join things like the National Trust and English Heritage at a reduced rate. Some shops offer discounts for over 60s too, for example, B&Q, and there are plenty of discounts available for health and wellbeing services, including free NHS eye tests, free prescriptions, and 25% off glasses at Specsavers.
5. Cut the cost of travel with a free bus pass
When you reach state pension age you can claim a free bus pass and enjoy unlimited travel on public bus services throughout Britain. But there are other travel perks too and it’s worth checking what’s on offer locally. Anyone over the age of 60 is eligible for free travel on buses, tubes and other public transport in London and anyone over the age of 60 is eligible for a senior railcard, giving you a third off train fares across the country. You can also claim discounts with many coach companies.
6. Pay off small debts before retirement
Entering your retirement debt-free can make a big difference to your financial situation. Although paying off more substantial debts may not be possible for everyone, aim to pay off small loans, credit card balances, and other minor debts before you retire. Eliminating even tiny amounts from your monthly outgoings will help streamline your finances and make financial planning easier.
7. Generate extra income through decluttering
Retirement is a great opportunity to clear out your clutter and get rid of any unused or unwanted belongings. It will also make moving easier if you plan to downsize. Sell items you no longer need or want using platforms like eBay, Facebook Marketplace or Gumtree or via car boot sales. You’ll be amazed by how much you can make.
8. Avoid unnecessary purchases
Keeping track of what you spend – using apps like Expensify or a spreadsheet can help you monitor your more impulsive spending habits and identify areas where you can cut back—think about things like takeout coffees, takeaways or gadget shopping and make simple swaps so you don’t feel like you’re missing out.
- For food shopping swap brand names for supermarket own brands or save money with apps like Too good to go.
- Batch cook curries and other food favourites for a quick takeaway alternative.
- Try charity shops or online sites like Vinted for an eco-friendly wardrobe update.
- Join your local library for free books, films and other services.
- Investigate community initiatives like a Library of Things where you can borrow tools etc. rather than having to buy them.
Save money in retirement with a McCarthy Stone home
At McCarthy Stone, we understand the importance of financial planning in retirement. Our Retirement Living and Retirement Living PLUS properties help you save by, for instance, having far lower energy bills than a typical home*. Our consultants will help you to find occupancy options to fit your budget and lifestyle including renting, buying, or Shared Ownership. We also offer free entitlements advice, helping you to claim extra money you’re entitled to—Government estimates show two in 10 pensioners entitled to Housing Benefit didn’t claim it between 2019 and 2020, while three in 10 people missed out on Pension Credit.
For more information on how McCarthy Stone can help you save money in retirement, call a member of our friendly team on 0800 201 4811 or contact us online today.
*Typical net saving when running a McCarthy Stone Retirement Living apartment when compared to the cost of running a typical home is £2,312 per year. Source: Internal research carried out by McCarthy Stone, 2022. Based on information from Address Intelligence using a combination of census, EPC and planning permission data. Service charge included in saving.
