Find out about all of the government benefits, as well as other advantages and discounts, that people over the age of 60 and over the age of 65 are eligible for when they retire.
What kind of financial advantages does retirement bring?
When you eventually reach retirement age, you will not just be able to enjoy a life in which you are no longer need to go to work. Once you reach a particular age, you become eligible for a number of different privileges, discounts, and benefits.
Some are provided by the government, such as increases to an existing pension, assistance in paying utility costs, or free or subsidised travel opportunities. The most important thing to understand about this situation is that the majority of the time you have to consciously make an effort to remember to claim them, as millions of customers in the UK fail to do so and as a result lose out on vital cash.
Others can be purchased from private companies and cover a wide variety of activities, such as going to the movies or receiving discounts on season tickets to sporting events.
What kinds of retirement and tax advantages am I eligible for?
State pension
Your eligibility for a state pension will be determined by the number of years you worked, the amount of National Insurance contributions you made during that time, whether or not you contributed to the state second pension, and the year in which you became eligible for a state pension. The amount of the state pension to which you are entitled will depend on these factors.
You’ll find the specifics on the amounts in our guide.
How much of a state pension can I expect to receive?
There will soon be a new retirement age for state pensions. The current age is 66 for both men and women, but it will go up to 67 between the years 2026 and 2028, and then it will go up to 68 after that.
Using our state pension age calculator, you’ll be able to determine when you’ll become eligible for your state pension. Visit our guide on your state pension and benefits for additional information on how the government contributes to the funding of your pension.
Credit toward a pension
People with modest incomes are eligible for an increase in their state pension thanks to a supplement called pension credit. Your guaranteed credit can boost your weekly income to a maximum of £177.10 if you are a single person or £270.30 if you are a couple in 2022/23.
The savings credit, which was eliminated for those who become eligible for the state pension on or after April 6, 2016, offers a weekly amount of £14.04 for a single individual and £15.71 for a couple.
Calling the Pension Service at 0800 99 1234 will allow you to submit your application for Pension Credit.
Reduced National Insurance premiums
Even if you are still employed after reaching the age at which you are eligible to receive a state pension, you will no longer be required to pay national insurance.
Because of this, it’s possible that your yearly tax burden will be significantly reduced. If you are an employee, you pay national insurance at a rate of 13.25 percent on income between £9,569 and £50,270, and if you are self-employed, you pay it at a rate of 9 percent on that same income. The rate drops to 3.25 percent over £50,270. (thresholds will increase in July 2022). You may learn more by reading our comprehensive guide to the rates of the National Insurance.
A person who earns £30,000 per year would have a tax savings of £2,398.59 for the 2022/23 fiscal year. Make sure you’re paying the correct amount by using our tax calculator.
Because national insurance is something that only applies to income from employment, if you retire before you reach the age at which you are eligible for the state pension and you only earn money from pensions, you won’t have to pay any national insurance.
What kinds of housing benefits am I eligible for?
Housing assistance benefit
If you have less than 16,000 pounds in savings, are living on a low income, or are receiving certain benefits, you may be eligible for housing assistance in the form of a benefit. Because the maximum discount you could receive is one hundred percent, it is definitely in your best interest to submit an application.
If this is your first time applying for housing benefit, you will need to submit your application through your city or town council.
What kind of savings can people over 65 get on their energy bills?
Winter fuel payment
Payments for winter fuel come in the form of an annual amount that is exempt from taxation.
It is provided on an automatic basis to retirees who are already receiving the state pension or certain other benefits. The current rates are £200 for each qualifying home in which the oldest member is under the age of 80, and £300 for households in which there is at least one person who is 80 years old or older.
In order for people to qualify for the winter fuel payment, they will have to wait until they are older.
In the past, the minimum age required to qualify for it was 60 years old; however, beginning in 2010, this age began to climb in conjunction with the increasing state pension age for women. This indicates that you will need to be 65 years old in order to receive the payment during the winter of 2022/23.
Payment for the cold weather
Between the months of November and March, you are eligible to receive a payment of twenty-five pounds (£25) for every seven-day stretch of extremely cold weather that has an average temperature of 0 degrees Celsius.
You will be qualified for it if you are receiving any other income-related benefits, such as the following:
Pension Credit Income Support Income-based Pension Credit Income Support Jobseeker’s Allowance
Employment and Support Allowance, which is related to income.
The Universal Credit System
What kinds of travel discounts am I eligible for?
Free ride on the bus
The age at which you become eligible for a free bus or transport pass varies from region to region throughout the UK.
If you are over the age of 60 and live in Wales, Scotland, Northern Ireland, or London, you are eligible for a pass that allows you free public transportation. However, if you are over the age of 60 and live anywhere else in England, you will not be eligible for such a pass until you reach the age at which you are eligible to receive a state
Concessionary travel also allows for limited free travel on trains and ferries in Wales and Scotland (under the National Entitlement Card correspondingly) once a passenger reaches the age of 60. This benefit begins at age 50.
London residents can obtain the 60+ London Oyster photocard at the age of 60, which allows for free travel on buses, tube, trams, trains, and London Overground after 9am on weekdays (or at any time on weekends), and then switch to the Freedom Pass when they reach the age of 65.
People in Northern Ireland who are between the ages of 60 and 64 are eligible for the 60+ SmartPass, and if they reach the age of 65, they are eligible for the Senior SmartPass.
Senior railcard
The Senior Railcard is a popularly-received benefit of retirement that is available to passengers who are at least 60 years old.
You can save a third off standard and first class prices anytime, off-peak, and in advance with this membership, which costs £30 a year and gives you access.
Individual companies that operate coaches and trains
There are some tour operators that provide senior discounts on their trips.
For instance, National Express has a Senior Coachcard that may be purchased for £12.50 (plus £2.50 for postage and packaging) for a year’s worth of travel and provides a discount equivalent to one-third of the cost of that travel. In order to apply, you need to be sixty years old.
Arrangements for the London Taxicard.
If you have major mobility issues and find it difficult to use public transportation, you may qualify for subsidised transportation through the London Taxicard scheme. This programme is available to residents of London. The boroughs of London and Transport for London provide the funding, and London Councils are responsible for managing the programme on their behalf.
In order to submit your application for the programme, you will need to complete out an application form for the London borough in where you now reside.
Please visit the page on the London Council’s website dedicated to the application process. There is also information regarding the maximum amount of money that you should pay and the number of journeys that you are permitted to take each year.
Which advantages to my health and well-being am I eligible to receive?
Disability Allowance for Living Expenses and Personal Independence Payment
Either the Disability Living Allowance (DLA) or the Personal Independence Payment (PIP), which has now replaced it, can provide you with financial assistance of up to £152.15 per week (£89.60 for the care component and £62.55 for the mobility component) to help with the additional expenses that are incurred as a result of having a disability.
Claimants who already have an open case are being transferred from DLA to PIP.
You are required to submit an application for Attendance Allowance in the event that you are over the age of 65 and do not get DLA or PIP.
Advantages for the Caregiver
If you spend more than a predetermined number of hours each week taking care of a family member or acquaintance, you may be eligible for financial assistance from the government. Learn more about the perks available to caregivers.
Learn more about the pensions and benefits available to the elderly.
Free eye exams and prescriptions for anyone over the age of 60
In England, if you reach the age of 60, you are eligible for free medications and sight examinations through the National Health Service (NHS). Everybody in the UK has access to free prescriptions wherever they go (as are eye tests in Scotland).
If you are getting pension guarantee credit, you will also be eligible for free dental treatment from the National Health Service (NHS).
Free eye exams and a 20 percent discount on glasses and lenses priced at £69 or higher are available to customers over the age of 60 at Specsavers. This discount applies to designer frames as well.
Boots Opticians offer senior citizens aged 60 or older who have an Advantage card and are participants in the More Treats for Over 60s scheme a discount of twenty percent on prescription eyeglasses or sunglasses.
Find out more about the rating system used for optical shops.
Can I cut costs on my entertainment expenses?
Discounts on admission to museums
The majority of museums provide discounts or free admission to older persons; in addition, English Heritage and National Trust also provide discounted memberships.
Discounted tickets to the movies
Odeon provides weekly Silver Cinema screenings for over-55s on a Wednesday for £3.50 as a myODEON member (£4.50 at the cinema, or £4 and £5 for non-members), while Empire has special Senior screenings for people over the age of 60 every Wednesday morning (tickets are £3.75). Both also offer free refreshments to their customers.
Tickets to sporting events at a discount
Fans of football, cricket, and rugby who are older can acquire discounted matchday tickets and season tickets to these sports’ games. People aged 65 and above typically receive discounts on their tickets.
