Information & advice

We all want to have a good standard of living in retirement but our income is likely to be less than it was before. Even if you have a reasonable income from your pensions and other investments a period of adjustment may still be necessary.

You can make your money go further by looking for the best deals in what you buy‚ taking advantage of any benefits or concessions you qualify for and looking at how you might otherwise increase your income.

Our information guide gives some tips and information about some of the things you can do to make the most of your money.

You can download our free information guide from the top right corner of this screen or click on the links below:

Index

• Introduction
• Your gas and electricity supplier
• Heating grants
• Winter Fuel Payments
• Your telephone service provider
• Water meters?
• Save money on insurance policies
• Are you missing out on any benefits?
• Help with Council Tax
• Help with your rent
• Other benefits
• Attendance Allowance and Disability Living Allowance
• Help with health costs
• Tracing old pensions and other accounts
• Tax matters
• Inheritance tax
• Letting a room in your home
• Releasing equity from your home
• Making the most of your investments
• Travel concessions
• Television licence concessions
• Other concessions
• The best deals for buying and selling
• Debt problems
• Useful organisations
• What should I do now?
• Related books

 

Your gas and electricity supplier

You can save money by changing your energy supplier. You still use the same gas pipes and electric cables. The change will be which company sells you your fuel and sends you your bills.

To find the best deal you need to work out how much you pay for your gas and electricity each year. Contact Energywatch for price comparison leaflets and a list of suppliers in your area. Alternatively‚ there are several websites that will calculate which energy suppliers can offer you the cheapest deal.

For energy (and money saving) tips contact the Energy Saving Trust on 0800 512 012 (free call) or visit the Energy and Savings Trust website

Prices are not the only reason to switch. Check whether the company is offering any special discount‚ such as dual fuel discounts‚ or other services‚ such as cheaper telephone charges.

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Heating grants

There are some heating grants available for householders of 60 or over who get means-tested and/or disability benefits. They are called ‘Warm Front’ grants and can provide central heating‚ insulation‚ energy-efficient boilers or repairs.

Call the Home Heat helpline on 0800 33 66 99 (free call) for more information about heating grants.
 

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Winter Fuel Payments

Winter Fuel Payments are paid to most people of 60 or over. At the time of writing these payments are £200 for each household that qualifies and £300 when someone in the household is 80 or over.

Contact the Winter Fuel Payment helpline on 0845 9 15 15 15 (lo-call rate) for more details.

 

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Your telephone service provider

You may be able to save money by changing telephone provider. Look at the costs of the line rental‚ calls and connection charges but also check what discounts are available‚ how many calls you make and what type they are – international‚ national‚ local. There are also deals that include ‘broadband’ internet access.

Check the bill payment options. Companies increasingly offer cheaper tariffs or discounts if you pay by direct debit. If you do not want to pay by direct debit check what the alternative pricing and payment options are.

Each company has a Code of Practice covering issues like repairs‚ maintenance‚ disconnection‚ and so on.

To get your new service you contract with the supplier. Often this will be for 12 months but there should always be a ‘cooling off’ period‚ when you have the right to change your mind about transferring your service.

Ofcom produces guides on price comparison and different phone companies.
 

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Water meters?

If you have a big home with few occupants you may save money by installing a water meter. They are installed free for domestic customers but water companies can refuse to fit a meter if it is too expensive or difficult.

It may be beneficial to switch to a meter if:

• you use very little water
• your property has a high rateable value
• you want to control how much water you pay for.

Websites such as Buy and Uswitch can help you estimate whether a meter would help you cut down on your bills.

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Save money on insurance policies

You may have been with the same insurance companies for many years‚ especially if you pay by direct debit. You might save some money by shopping around but always check the detailed policy conditions first. Some travel and motor policies have age limits – always make sure that you will be able to get new cover before cancelling your existing policy. Check the small print to make sure you are not paying more excess or that there are not more exclusions‚ and so on. Compare different offers before going ahead – an insurance broker may be able to help you.

Contact the Association of British Insurers for further information.
 

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Are you missing out on any benefits?

You may be entitled to financial assistance‚ even if you have savings or income other than your state pension. Some benefits are not means-tested and others are paid on a sliding scale so you can get some help even if you do not qualify for the full amount.

Ask a local advice agency‚ such as local Age Concern or the Citizens Advice Bureau‚ for a ‘benefits check’ to see if there is anything you can claim.

‘Before my local Age Concern gave a talk about benefits I had no idea I could get any help towards my Council Tax. I own my home and I thought it was only paid to people who rent. One of the Age Concern people helped me to make a claim and now I’m much better off.’

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Help with Council Tax

Lots of older people are entitled to money off Council Tax but do not claim it‚ so do check to see if you qualify. You can claim this rebate whether you own your own home or rent it.

There are also Council Tax discounts‚ for example 25% off if you live alone. If you have a disabled person living in your home you may also be able to claim a disability reduction. This would lower your Council Tax band so that you would pay less.

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Help with your rent

If you pay rent you may be able to get some help from Housing Benefit‚ which is paid by the local authority. Housing Benefit can also help towards some service charges.

Contact your local authority for claim forms for Council Tax Benefit and Housing Benefit if you might be entitled to some help.

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Other benefits

Depending on your income and savings there may be other benefits you could get. Get advice from one of the organisations in the Useful Organisations section.

 

John‚ 70‚ retired from his own small business three years ago…

‘My wife Gill and I made sure that we are reasonably well provided for in our retirement but we still like to make sure we’re using our money smartly.

‘It’s funny but although I was used to looking for the best value suppliers for my company‚ I’d never really done the same at home. It’s partly habit‚ I suppose – for most of my life there was only one place to get your power or phone services. It was only after I retired that I looked into whether I was getting the best deal. We changed gas and electricity suppliers‚ but not just for the sake of it. Our current phone company seemed best for us so we stayed with them.

‘I had a few different jobs before I set up on my own. When I looked into it I found that I had a small works pension due to me from one of them. It’s not a huge amount but it’s worth having. I felt a bit silly asking at first‚ as I’d mislaid the paperwork‚ but I’m glad I did.

‘Gill wants me to start trading on internet auctions. She’s probably dropping a hint about my football programmes. I might give it a go: I enjoyed being in business and it might be quite good fun.’

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Attendance Allowance and Disability Living Allowance

These are benefits paid to help with the extra costs of illness and disability. They are not means-tested so you will not have to answer questions about your finances.

Attendance Allowance is paid to people who have personal care needs or who need ‘watching over’. You can claim this if you are 65 or over.

Disability Living Allowance is in two parts – the care part is also for people who have personal or ‘watching over’ needs and the mobility part is for people who have great difficulty in walking or cannot walk at all. It has to be claimed before you are 65 but can continue after that age.

Personal care means help with things like getting up‚ getting washed and dressed‚ moving around the house‚ going to the toilet or help you need because of sight or hearing difficulties. Help with shopping or housework does not count.

It does not matter if you are not getting any help from another person. It is the help you need that counts not the help you get.

Ring the Benefit Enquiry line on 0800 88 22 00 (free call) and ask for a claim form. Arrange some help from a local advice agency‚ such as your local Age Concern‚ to complete the claim form.

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Help with health costs

Everyone over 60 gets free prescriptions and eye tests. If you have less than £16‚000 in savings you may be able to get some help towards dental treatment‚ glasses and travel costs to hospital if you fill in an HC1 form.

Ask your dentist‚ optician or hospital staff for advice before paying for treatment. There may be other ways of getting help if you have certain medical conditions.

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Tracing old pensions and other accounts

If you changed jobs a lot before you retired you may have several small pensions in different places. You will need to write to the pension scheme administrators of each of these asking for your pension to be paid. Some of these firms may have closed down or merged with other companies and/or changed their name. Similarly‚ you may have mislaid details of savings or other accounts that you hold. It may still be possible to find and claim this money

Contact the Pension Tracing Service for help locating occupational and personal pensions. If you think you may have unclaimed assets in a bank or building society contact the British Bankers’ Association and/or the Building Societies Association‚ for details of their account tracing schemes.

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Tax matters

The state retirement pension is paid with no tax deducted but it is taxable – if you have another personal or occupational pension and/or some savings you are probably paying some income tax. Your personal tax allowance (the bit you are allowed before paying any tax) increases as you get older at age 65 and again at 75‚ although this allowance can be reduced if your income is above a certain level. Check that you are getting the correct allowance and that you have the right tax code. Your tax code tells the pension company how much tax to deduct and there is no guarantee it will be right‚ particularly if you have more than one pension.

Make sure you are not paying any more tax than you have to. Interest on savings is usually paid with tax deducted but can be paid without the deduction if you are not a tax payer. Ask your bank or building society for a form. If you have overpaid tax‚ you can reclaim the overpayment for up to six years ago.

Contact TaxHelp for Older People for more information. Contact HM Revenue and Customs office for more information about taxes. You should find your local Tax Enquiry Centre

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Inheritance Tax

Because of the increase in the value of people’s houses more estates are becoming liable for Inheritance Tax‚ paid after the owner’s death. For the tax year 2007/8 Inheritance Tax is payable on estates worth more than £300‚000. The rules are complicated so if you think your estate will be liable for Inheritance Tax after your death do not give away any assets without first getting advice. Contact a solicitor‚ accountant‚ tax adviser or an independent financial adviser.

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Letting a room in your home

If you own your home you could make a bit of extra money by taking in a lodger. Under the Rent a Room scheme you can earn up to £4250 a year without paying income tax. The lodger has to live in your home and not in a self-contained part of the building. If you have a parking space or garage you do not use you may be able to rent it out. You may have to pay tax on the income though.

Ask your local tax office for a leaflet about the Rent a Room scheme. Check in a local paper the going rate for renting out rooms or other spaces in your area.

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Releasing equity from your home

Older homeowners may be able to use their homes to release some income or a lump sum. But we recommend that you always get independent legal and financial advice before taking out any equity release plan.

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Making the most of your investments

Banks and building societies sometimes change the interest rates on their accounts or introduce new ones with better rates. Ask your bank or building society if they have any new accounts. Personal finance sections in newspapers often print tables comparing available rates and there are websites that do the same. An independent financial adviser may be able to help identify which products suit your requirements. Being called ‘independent’ does not necessarily mean that an adviser has access to all the companies in the marketplace however.

Contact the Financial Services Authority (FSA) for details of how to find an independent financial adviser. They also have booklets and factsheets including Raising money from your home and FSA guide to financial advice. If you are interested in a particular type of financial product‚ such as equity release‚ make sure the adviser you choose has relevant qualifications and experience in that field.

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Travel concessions

People of 60 and over are entitled to free off-peak local area bus travel. This will apply across local-authority borders from 2008.

Some coach providers such as National Express give discounts for older and disabled people.

Rail companies give reductions on many train fares to people of 60 or over who buy a Senior Railcard. They can also buy a Rail Europe Senior Card and save up to 25% on cross-border travel in Europe.

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Television licence concessions

TV licences are free for households with a person aged 75 or over. People who are registered blind can get a 50% reduction. There is also a £5 concessionary licence for people who live in care homes or certain sheltered housing schemes.

The Government has said that people over 75 will get some financial and practical help from 2008 when the TV signal starts to change to digital. We do not currently have any more detail about this.

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Other concessions

People over pension age generally get concessions for adult education classes and leisure facilities. Museums and galleries usually offer free entry. Theatres may offer reduced admission. Some libraries have free internet access. Hairdressers sometimes offer special rates and some restaurant chains and pubs provide discounted meals. Keep an eye out for other discounts!

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The best deals for buying and selling

If you have the time‚ shop around for the best deal. There are many websites with money-saving tips and price comparisons. If you do not own a computer you can usually access one at your local library where you will also get help to get started! But before you buy anything via the internet make sure you are shopping safely. Websites such as Shop Safe and Consumer Direct  give advice about secure internet shopping.

If you have stuff that you no longer need‚ particularly if you are thinking of moving to a smaller property‚ you may be able to sell it for extra cash. Auction and other selling sites have become very popular on the internet. Try Gumtree (free to advertise) or eBay (a small charge).

 

Debt problems

Making sure that any debt issues are under control should be a priority as part of any review of your finances. Seek advice from an independent advice service such as the National Debtline. Be very wary of the claims made in advertising by debt adjustment companies offering to tidy up or reduce your payments: often the terms of this type of agreement are very unfavourable.

Contact one of the organisations listed for further help and advice.

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Useful organisations

Age Concern
Find details of your nearest local Age Concern or call the Age Concern Information Line on (free call) 0800 00 99 66.

Association of British Insurers
Provides information on insurance cover‚ including a leaflet specifically for older motorists.
51 Gresham Street
London EC2V 7HQ
Tel: 020 7600 3333

British Bankers’ Association
The leading trade association in the UK financial services industry. Includes an account tracing scheme.
Tel: 020 7216 8800

Building Societies Association
The trade association for all the UK’s building societies. Includes an account tracing scheme.
Tel: 020 7437 0655

Citizens Advice Bureau (CAB) for local CAB details
National network of free advice centres.
For details of your local CAB call 020 7833 2188 (this number gives local contact details only‚ not advice).
Other website: Advice Guide for online information
 
Consumer Credit Counselling Service
A charity giving debt counselling sessions (lasting about two hours) in person or by phone.
9th floor
Wade House
Merrion Centre
Leeds LS2 8NG
Tel: 0800 138 1111 (free call)

Energywatch
Energywatch is an independent gas and electricity consumer watchdog.
Tel: 0845 906 0708 (lo-call rate)

Fuel price comparison websites include:
www.buy.co.uk/
www.energyhelpline.com/
www.moneyexpert.com/energy
www.uswitch.com/

Financial Services Authority (FSA)
The FSA will confirm whether your financial adviser is authorised. They also have booklets and factsheets.
25 The North Colonnade
Canary Wharf
London E14 5HS
Consumer helpline: 0845 606 1234 (lo-call rate)

HM Revenue and Customs (HMRC)
Contact HMRC for more information about taxes. You should find your local Tax Enquiry Centre in the phone book or on their website.

Low Incomes Tax Reform Group
an initiative of the Chartered Institute of Taxation to give a voice to those who cannot afford to pay for tax advice.

National Debtline
A national helpline for people with debts‚ giving self-help advice‚ counselling and support over the telephone. Sends out free information packs.
Tel: 0808 808 4000 (free call)

Ofcom (Office of Communications)
The independent regulator and competition authority for the UK communications industries.
Tel: 020 7981 3040
Textphone: 020 7981 3043

Pension Tracing Service
If you think you may have an old pension‚ but are not sure‚ the Pension Tracing Service can usually trace it for you.
Tyneview Park
Whitley Road
Benton
Newcastle upon Tyne NE98 1BA
Tel: 0845 600 2537 (lo-call rate)

TaxHelp for Older People (TOP)
An independent free tax advice service for older people on low incomes.
Pineapple Business Park
Salway Ash
Bridport
Dorset DT6 5DB
Tel: 0845 601 3321(lo-call rate)
Email: taxvol@taxvol.org.uk

Winter Fuel Payment helpline
Tel: 0845 9 15 15 15 (lo-call rate)

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What should I do now?

If you would like more information on the issues in this guide please call the Age Concern Information Line free on 0800 00 99 66.

You can order free paper copies of all our information guides through our online Information Guide order form.  

We also publish books covering many of the above issues. Browse our online bookshop.

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Related books

We also publish books covering many of the above issues in our online bookshop. The following books may be of particular interest:

• Your Rights to Money Benefits - Simple ways to boost your finances using clear‚ jargon-free language
• Choices in retirement - the fourth edition includes new sections on getting the most out of the NHS‚ reducing household bills‚ adjusting to being at home‚ and grandparenting.
• Pay Less Tax - This book will tell you everything you need to know about tax.

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