How to save money when retired – 10 top tips

Now as you’re here, you’re probably wondering, how do I save money when retired? Here are our 10 top tips!

1. Budget and record your outgoings

Even those who would describe themselves as financially stable, should still put budgets in place and record their spending. From the food shop, to bills, to holidays, to putting a bit in your savings account each month. All outgoings should be recorded on a spreadsheet or in an old school notepad, and this way you know where you are at and if there are any spending habits you need to cut down on.

2. Downsize

Many of us have and will spend years working tirelessly and investing much of our hard earnings into the family home, where children are raised, and memories are made. However, when we get to retirement age, the once upon a time big achievement, often turns into a burden with the financial strain to maintain the home such as council tax, heating bills, general household repairs, the list goes on. So, selling your house and downsizing will save up a large amount of cash to put straight into your retirement saving fund.

3. Sell one of your cars and or/use public transport more

The gov.uk website states that in 2021, 33% of UK households had access to more than one car, and according to a 2021 study by NerdWallet, it costs £3406.80 a year to run a car in the UK or £5744.40 for those with car finance.

If you are part of that 33%, maybe you should think about cutting down to just the one vehicle, or better yet, go completely car-less! Yes, owning a car does make life slightly easier, however, you shouldn’t forget about your bus pass when you reach state pension age. Or the OAP Railcard, better known as the ‘Senior Railcard’, which gives people aged 60 and over 1/3 off train fares throughout the UK. Or, your legs! Walking to places as opposed to driving is not only the cheapest option of them all, but also comes with a long list of health benefits.

4. Shop online

There are many plus sides to doing your shopping online, with one money saving benefit being that it gives you a better opportunity to compare prices. No matter what you’re looking for, you can visit every single website that stocks the product if you wish, and hunt down the best deal.

Online shopping also saves you petrol and parking money, especially with today’s fuel prices! For most people it will be a lot cheaper to pay for postage from the comfort of your living room. Better yet, if you scour the internet a little more, you could probably even find a free delivery discount code from somewhere!

5. Travel out of season

Once you’re retired, you have no ties, you can travel whenever you like. Now’s the time to snap up those great out of season deals and see the world! During the school holidays especially, prices rocket, sometimes as much as double the usual amount for your flights and hotel. The fact that you don’t have to book anytime off work also means you can drop everything and go the following week if you see a brilliant last minute deal!

6. Relocate to somewhere with a lower cost of living

Are you currently living somewhere with a high cost of living? If so, we advise you to research a little bit as you’d be surprised what a big difference it makes moving somewhere slightly cheaper. From property prices, the amount you pay for petrol, how much to have your hair cut, a pint at the local pub, everything reflects that of the local area.

7. Turn your hobby into a part time job

Some people may not want to ever completely retire, and some may not have the choice. However, your retirement years should be about you and what you want to do, so why not turn your hobby into a little part time earner on the side. There are plenty of flexible and enjoyable ways to make a bit of extra cash out there.

Some of our top suggestions:

• Tutoring a subject you love
• Dog walking/pet sitting
• Get creative and sell your creations online
• Upcycle furniture
• Working in a shop selling something you’re passionate about

8. Claim what you can

At ExtraCare, we have a whole team dedicated to making sure our residents get all of the benefits that they are entitled to, as so many get missed.

Natalie, our Welfare Benefits Lead tells us why it is so important we educate people on the benefits that are available:

“People should claim what they are entitled to, many don’t like to make claims or find the claim forms too confusing, but it really does make a difference to their quality of life, especially with the cost of living increasing. In 2021/22, we supported residents in claiming £4.9m in benefits. Please come and see us, it’s better to check than potentially miss out on years of assistance!”

9. Treat yourself

This is a really important part to remember! You’ve been working hard for many years, and provided for your family, now is the time to indulge a little if you want to. By putting some money aside each month to spend on something you love, this will not only decrease your urge to splurge, but also make you feel a sense of happiness and satisfaction.

10. Move to a retirement village

There is a lot of stigma surrounding retirement villages and the cost. However, moving into a retirement property generally means downsizing, which generally means much cheaper bills. I know I like the sound of that!

There are no hidden costs, our sales team are very clear on the service charges and what this covers before you purchase a property. And please remember that ExtraCare is a charity, our principal aim is to ensure that we can offer our residents a truly rewarding lifestyle, and high quality apartment at a cost that is affordable and fair for all.