Money saving tips for the over-60s

If you're over 60, make sure you're not missing out on your share of benefits...

As I've not yet celebrated my 30th birthday (although it's not far off), I think it's pretty fair to say that I'm not going to be retiring for a long while yet. But when I do, I really hope the economy is in a much better state than it is at the moment. After all, I want to enjoy my retirement without worrying about money.

But for today's pensioners, worrying about money is now often the norm. Many rely on their savings for everyday living, and thanks to low interest rates and rising food and fuel bills, more and more pensioners are becoming poverty stricken.

In fact, according to Age Concern, a total of 2.5 million pensioners are living in poverty, and 1.5 million are in deep poverty.

Unclaimed benefits

Despite this, Age Concern believes millions of pensioners are still missing out on up to £5 billion in benefits each year. Many pensioners simply don't realise they might qualify for help from the State, and the terms for eligibility can sometimes be confusing.

So to give you a helping hand, here's a run through of some major age-related benefits:

Keeping warm

Last winter was pretty brutal, with freezing temperatures sweeping up and down the country. And thanks to high enery prices, staying warm in your own home has become very expensive. However, if you're aged 60 or over, you can take advantage of an annual Winter Fuel Payment aimed at helping you with the costs of your heating bills.

Exactly how much you get will depend on your circumstances. But generally if you were born on or before 5 July 1950 your household will receive £250, and if you're 80 or over on or before 26 September 2010, your household will receive £400. However, if you live in a care home and don't get pension credit or income-based jobseeker's allowance, you'll get £125 if you were born on or before 5 July 1950, and £200 if you're over 80 by 26 September 2010.

The claim form for winter 2010/11 will be available from August 2010. You can find out more here.

It's also worth noting that in the future, the Winter Fuel Payment qualifying age will increase from 60 to 65 between 2010 and 2020. You can use this calculator to find out when you will reach the qualifying age.

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Keeping even warmer!

If you're over 70 and have little or no insulation in your home, you could be eligible for free loft and cavity wall insulation. This could save you as much as £200 in energy bills per year so it's well worth doing. To find a local National Insulation Association approved installer in your area you can visit www.nationalinsulationassociation.org.uk.

Travel for less

If you're aged 60 or over and regularly travel by train, it's worth applying for a Senior Railcard. Although it costs £26 for a year (or £65 for three years), you'll save a third on most train tickets. However, you won't be able to use your railcard on morning peak period services.

If you prefer travelling by bus, there's an even better deal! Since April 2008 anyone who was born before 6 April 1950 and who lives in England is entitled to a free annual bus pass for off-peak travel (between 9.30am and 11pm Monday to Friday, and all day at weekends and public holidays) on local buses anywhere in England.

However, if you were born after 5 April 1950 and you're a woman, the eligible age for free bus travel is pensionable age, and if you're a man, the eligible age is the pensionable age of a woman born on the same day. To check at what age you're eligible, you can use this calculator.

It's also worth checking with your local authority to find out whether they offer any further benefits such as free travel at peak times -- but do note these will only apply for travel in the local area, not the rest of England.

Finally, if you were born on or before 2 September 1929, you are eligible for a free standard 32-page ten year passport.

Health bills

If you're aged 60 or over, you won't have to pay for your prescriptions, so you'll be able to pocket some extra pennies.

What's more, you'll be entitled to a free NHS eye test every two years, rising to once a year when you turn 70. And don't forget that some opticians offer discounts on glasses to anyone over 60 -- Specsavers offers a 25% discount on glasses and lenses, while Dolland and Aitchison offers 25% off frames.

And if you live in Wales, you'll also get free dental examinations.

TV licence

If you're aged 75 or over, you'll no longer have to pay for a TV licence! And if you're younger than this but living in residential care, you may only need to pay £7.50 a year for your licence (compared to the standard £145.50 for a colour TV).

Pension credit

As well as being entitled to the Basic State Pension (providing you have enough qualifying years) when you reach the State Pension age (currently 65 for men and 60 for women born on or before 5 April 1950, but rising in the future), you may be entitled to an extra form of income called Pension Credit. This is made up of two elements.

If you're a pensioner living in Great Britain, in 2010-11, Pension Credit could top up your weekly income to a guaranteed minimum of:

• £132.60 if you're single
• £202.40 if you have a partner

If you're aged 65 or over, you may also get up to an additional:

• £20.52 a week if you're single
• £27.09 a week if you have a partner

You can find more information on pension credits on the Direct.Gov website. And don't panic if you're still feeling rather confused about all of this, because you can use a Pensions Calculator to help you. You can also get further advice from your local Age Concern branch.

So whatever you do, if you qualify for any of the above benefits, make sure you take advantage of them! Hopefully if more pensioners receive these benefits, we can start to say goodbye to pensioner poverty.

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