Millions of UK retirees could be missing out on thousands of pounds each year

Where UK retirees could be missing out on money

• Two thirds (65%) of UK adults aged 55+ don’t fully understand the financial options available to them as they age, with millions missing out on up to £13,000 a year*
• 87% of Brits aren’t including their housing situation as part of their later-life financial strategy, despite it being one of the biggest drivers of their long-term financial security and independence
• Uncertainty is fuelling inaction, as more than half of those 55 and over (60%) are not applying for financial support because they assume they wouldn’t qualify
• Personal finance and consumer expert Sue Hayward is working with McCarthy & Stone to help close this confidence gap and shine a light on financial and housing options 
• McCarthy & Stone data shows that in 2025, 178 homeowners used its later-life shared ownership product, delivered in partnership with Homes England**, to save approx £80,000 each - a total saving of £14.5 million

Around 14 million*** UK adults aged 55+ are at risk of missing out on thousands of pounds in financial value each year because they’re unaware of the options and planning routes available to them. 

New research commissioned by McCarthy & Stone reveals a clear knowledge gap among those 55 and over. More than a third (33%) don’t know about the money-saving help they’re entitled to, and two thirds (65%) don’t fully understand their later-life financial options. 7 in 10 (71%) lack confidence when it comes to the support available and 6 in 10 (60%) are uncertain about what they can qualify for in later life. The knowledge gap is intimidating, with a fifth (20%) finding financial support “too complicated to know where to start”. 

Many Brits 55 and over are missing out on financial support simply because they assume it isn’t for them. 60% have never explored financial options because they didn’t think they would qualify, with half (52%) thinking it’s “meant for people worse off than me”. In fact, two fifths (43%) admit they’ve never even checked what they’re entitled to. 

People tend to be more familiar with smaller, common perks, but less aware of the wider support that could make a bigger financial impact. Free bus passes (65%) and transport discounts (65%) are widely known, but only 3 in 10 (31%) are aware of council tax reductions, 28% about energy support and 39% about Attendance Allowance.

A missed opportunity

But the research shows the biggest missed opportunity isn’t benefits - it’s housing.

Despite being a major part of long-term financial security, a large proportion of Brits (87%) aren’t factoring housing into their long-term financial plans. Understanding is limited, as over a fifth (21%) admit they’re unsure of how housing decisions affect their long-term finances, and just 17% are aware of shared home ownership for those 55 and over, with even less awareness of flexible retirement housing models (14%). The lack of financial awareness is leaving 43% concerned about their finances and insecure about the future and is also fuelling inaction, with 10% delaying major housing decisions for more than a year.

Yet many are open to moving if the financial case is clear. Key motivations include saving money by reducing bills (32%) or maintenance costs (28%), as some also wish to move closer to family (18%).

McCarthy & Stone offers schemes that are proven to help save on housing costs. Its data shows that in 2025 alone, 178 homeowners used its later-life shared ownership product, delivered with Homes England**, to move into a new home for on average £80,000 less than full market price – a total saving of £14.5 million.

The scheme allows buyers to purchase up to 75% of a retirement apartment and pay no rent on the remaining share, reducing upfront costs while maintaining independence and improving access to high-quality later-life housing. It’s available to households earning £80,000 or less, yet 16% of those 55 and over say they were previously unaware this type of housing existed.

Reacting to the findings, personal finance and consumer expert Sue Hayward said:

“This research shows households could be missing out on millions in financial and housing support simply because they don’t realise what they’re entitled to, where to find out more or how to claim.  

Planning and research is key when it comes to having the power to choose the retirement you want. If you’ve built up equity in your property, it’s worth exploring all avenues, as it may not be practical to stay in your current home forever and there are other options when it comes to supporting an independent, but safer and more secure lifestyle”.

Based on the research, Sue highlights ten commonly underestimated or misunderstood areas where savings and support can add up - with housing decisions playing a central role:

1. Downsizing: It pays to think long term with housing needs and explore all your options. Downsizing and buying a smaller, more manageable property may be one solution if you still live in a large family home with high energy bills and maintenance costs. There are schemes in place that can help you with this. McCarthy & Stone, for example, offers a Smooth Move package to help ‘declutter’ and generally streamline the moving process. 
2. Shared Ownership: You can also consider later life shared ownership, where you buy a share of a purpose-built, high quality home with flexible ownership options. In some cases, you may not need to pay rent on the remaining share.
3. Travel: You may know you can get a free bus pass, but a Senior Railcard costs £35 a year and saves a third on train travel from age 60. You can buy coach discount cards too, such as the National Express one at £15 a year.
4. Pensions: Give yourself a financial health check. Start by checking pension pots as you may be worth more than you think if you have lost or forgotten pots from past jobs. It’s easy for paperwork to go astray with house moves, so use the free Pension Tracing Service if you need help contacting previous pension providers.
5. Pension Credit: Check you’re claiming everything you’re entitled to. Around a million people who could claim Pension Credit miss out. Worth an average of £2,600 a year to those over state pension age, it’s a ‘top-up’ payment that unlocks the door to other benefits, including a free TV licence. Use the free Pension Credit calculator on the government website: https://www.gov.uk/pension-credit/what-youll-get
6. Forecast: Get a free state pension forecast to see how much you’ll get and when: https://www.gov.uk/check-state-pension. You can delay taking your state pension, which means boosting payments by nearly 6% a year.
7. Council Tax: If you’re the only adult living in your property, you can claim a 25% council tax discount. You could also have up to 100% of your bill waived under the Council Tax Reduction scheme if you are on a low income or claim benefits. Contact your council for details.
8. Discounts: There are lots of age-related deals and discounts, from supermarket savings to meal deals, cinema tickets, and reduced entry at attractions. It’s always worth asking - and take proof of ID for eligibility.
9. Attendance Allowance: If you need extra help with daily tasks like washing or getting dressed due to a health condition or disability, and are state pension age or older, you may be eligible for Attendance Allowance. This is worth from £3,800 a year up to £5,700.
10. Deadlines: Some benefits and payments can only be backdated for a limited time, typically one to three months, so always apply as soon as you can to avoid missing out. Be sure to declare any change in circumstances too.

Commenting on the findings, Chrissy Fice, Marketing Director at McCarthy & Stone, said:

“This research shows how powerful clear information can be. When people understand the financial and housing options available to them, it can unlock confidence, flexibility and meaningful savings. Through our government-backed later-life shared ownership scheme, we’ve already seen customers save a combined £14.5 million in 2025 while enjoying the benefits of a safe and secure new home - proof of how the right information can turn options into real financial and lifestyle outcomes. Our role is to help experienced homeowners make informed choices about how they want to live next, with clarity, control and peace of mind.”