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Managing in retirement

Step 2 – Take action

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Whether you've got enough money with some to spare, or there isn't enough to make ends meet, it's important to know how you can make more of your money. The tips below may help you.

Enough money and more?

  • Consider starting a regular savings account if you haven't already got one, to build up an emergency fund. Consider whether an easy access account that allows you to withdraw your money quickly without penalty would suit your needs better than an account that might tie up your money for a long time – see Savings.
  • Consider reducing your borrowing costs, for example any outstanding credit or loans. Watch out for early repayment charges, which some providers may charge you if you pay a loan or mortgage off early. Depending on the cost of the loan and savings rate available, it can be better to repay debt than to save. You should also take early repayment penalties and access to your money into account – and, if you decide to keep a loan, it may be cheaper to switch to another provider.
  • If you're happy to put aside some money for the medium to long term and don't mind the riskiness of the stockmarket, consider investments – see Investments.
  • It is important to think about how your dependants would manage financially if you died and to make what plans you can to provide for them – check whether your life insurance or pension will provide for them.
  • You may want to think about how you would cope financially if you or your spouse or partner became ill and needed long-term care; what impact would this have on your dependants? – see Long-term care.
  • And even how you or they would pay for funeral costs – see Funeral plans.
  • Make a will if you haven't done so already. You can search for a solicitor specialising in wills on the Law Society's website – see Useful links.
  • Decide how you want your assets to be shared out and make sure that you don't pay inheritance tax unnecessarily. You may need to seek financial, legal or tax advice – see Getting financial advice.
  • Even if your budget is manageable, make sure you claim everything you're entitled to. £2 billion of benefits go unclaimed by people over 60 every year – see 'Get more help'.

Not enough money to balance the books?

Don't ignore the problem. The longer you leave it, the worse it will get.

  • Check out which benefits you may be entitled to, to help boost your income. You may also be entitled to help with healthcare, travel and grants for improvements to your home for example – see Directgov over 50s.
  • Nearly half of all pensioners are entitled to Pension Credit. This tops up your weekly income to a guaranteed minimum level if you're over 60. Call the Pension Credit Line on 0800 99 1234 or complete a form online at the Pensions Service – see Get more help.
  • You may also be entitled to additional tax allowances from HM Revenue & Customs – see Get more help.
  • Find out if you can save money by switching your utility and other bills to different providers and spreading the cost using direct debits. You can compare the cost of gas and electricity on the uSwitch website.
  • If you're a homeowner, you may consider equity release schemes. These allow you to convert some of the value of your home into either a lump sum or monthly income. But they are complicated products and are not suitable for everyone. For example, they can be expensive and inflexible if your circumstances change in the future (if you want to move home or if you need to go into long-term care) and may also affect your current or future entitlement to State benefits. Equity release also affects the amount of money you will be able to leave your partner or dependants. You would be wise to take professional advice from a suitable adviser before committing yourself – for more information see Equity release.

What next?

Explore more guides

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