Here are some helpful tips for retirees on how to maximize their savings and manage their money.
Retirement is supposed to be a time when you relax and enjoy the fruits of your labour, after having worked for many years. However, in recent years any pensioners who are trying to live on limited incomes are becoming uncertain about their future. When the financial crisis hit, anyone on a fixed income such as a pension has suffered from rising food and fuel prices.
However, with clever money management and planning ahead you can take control of your retirement finances and make sure that you will always have what you need. Here are some tips to help pensioners make sure that they manage their money well in their golden years:
- If you have some extra space in your home, consider renting out the room. You can earn thousands of pounds per year, and the first £4,250 you earn is tax free.
- Are you getting the best return on your savings? Check with your bank to find out if they offer better accounts designed for people over 50, which will offer you higher interest rates.
- Investigate whether it might be worth your while to switch bank account.
- If you are spending a lot of your money on energy bills, use a comparison website to see if you are getting the best deal. Use a site which is accredited by Energywatch to compare prices, and you could save hundreds of pounds per year.
- Some energy suppliers offer grants to their low-income customers for insulation and heating improvements which will increase the energy efficiency of your home.
- Downsize and move to a smaller home. Now that the kids have all grown up and have families of their own, you don’t need to be living in a large family home. By downsizing and moving to a smaller house or apartment, you will be able to free up a large sum of money for your retirement. You will also have a lot less property to clean and maintain!
- Be frugal! Look for sales at the supermarket, buy things in bulk to save, and buy used items instead of new. If you can reduce the amount of money you spend, you will be able to live comfortably on a lot less.
- Are you receiving all of the benefits that you are entitled to? Up to five billion pounds in benefits goes unclaimed every year by elderly people, and one in every three people eligible for pension credits fails to claim them. Find out what you are eligible for so that you can claim what you need.
- Take advantage of any senior citizen discounts, such as free prescription medicines, free bus passes, and discounted National Rail fares.
There are many ways that you can put yourself in a better financial position on a pension, so take control of your finances and enjoy your retirement!
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