More money in retirement

Having enough income is one of the key things you need to consider when thinking about your retirement, so it's worth taking the time to work through your options

How to supplement your retirement income

You might be on a fixed retirement income, but there are other ways that you can supplement your finances in retirement.

Whatever you choose, remember that effective budgeting is always important. Managing your money well won’t necessarily get you more income, but it'll help make funds available for the things you need/want.

With that in mind, here are just some of the options you have for getting more money in retirement. Remember, these could affect any means tested benefits you claim.

Claiming the benefits and allowances that you’re entitled to

If you’re a UK resident and at retirement age, there are a raft of benefits and allowances that you may be entitled to. These range from help with heating costs, and free travel on buses to health and disability allowances for those who are less physically able.

In England and Wales you can apply for a free older person’s bus pass when you’ve reached the female State Retirement age (in Scotland and Northern Ireland you get the pass when you are 60).
And if you were born on or before 26 September 1955, you’ll receive between £100 and £300 towards your winter fuel bills.
Anyone over 60 is entitled to free prescriptions and eye tests.

Benefits and allowances

Consolidating your pensions

You could simplify your pension savings by consolidating your old pensions into our Personal Pension.

Our online account makes it simple to manage your investment, putting you in control.
Consolidating your old pensions, could save you money on fees and charges.

Consolidate your old pensions

Using your pension tool

Claiming the benefits and allowances that you’re entitled to

A lifetime mortgage is a type of equity release and is a loan secured against your home. The amount borrowed and the interest doesn't need to be repaid until you die or move into long-term care. There may be cheaper ways to borrow money. What is equity release and how does it work?

A loan secured against your home
Choose whether you’d like to pay monthly interest
The loan is repaid when the last borrower dies or moves out of the home into long-term care.

Our lifetime mortgages

Equity release calculator

Taking out a retirement interest-only (RIO) mortgage

A retirement interest-only mortgage is and type of residential mortgage and is a loan secured against your home. You have to pay the interest off monthly, but the full amount of the loan doesn't need to be repaid until you die or move into long-term care. As a last resort, your home may be repossessed if you do not keep up repayments.

A loan secured against your home
Pay off the interest every month
The loan is repaid when the last borrower dies or moves out of the home into long-term care.

Our RIO Mortgage

RIO mortgage calculator

Downsizing your home

If you own your home, you could consider selling it and downsizing to release some additional funds. Downsizing is where you buy a less expensive home. After paying moving costs and stamp duty, there could be money left over which will be yours to use as you wish.

Find a more manageable and accessible home
May help you reduce maintenance cost and effort in your current home
You could save money on your home running costs
There will be some costs involved with downsizing.

Renting out your property

For many people, their home is their biggest asset and there are ways in which it could work harder for you. From renting out a room, a car parking space or the whole property, using your home to help supplement your finances in retirement has a number of attractions.

It's possible to earn up to £7,500 per year in rental income without paying tax on that income. This allowance is only for the rent-a-room scheme.
You can choose how long you wish to rent your parking space for
Stop rentals, with notice, whenever you like

Delaying your retirement

The age you decide to retire is entirely your choice. More and more people are now delaying their retirement, and that can mean deferring their State Pension.

For anyone reaching the State Pension age after the 6th April 2016, your State Pension will increase every week you defer, as long as you defer for at least nine weeks.
It will increase by the equivalent of 1% for every nine weeks you defer.

About the State Pension

Using your pension tool

Working in retirement

Working past State Retirement Age not only means deferring the State Pension, it can also mean additional income from paid employment and provide extra income whilst you get used to being on a reduced or fixed income.

Fund your retirement with additional income.
Work flexibly around your lifestyle.
Look for paid employment doing something you enjoy.
Keeps you mentally and physically active.

Benefits and allowances

Next steps

It’s worth thinking about your plans for the future, and taking time to look at your options in detail. We don’t help customers downsize, or take out buy to let, but we may be able to help in other areas: