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.

Consolidating your pensions

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

Taking out a lifetime mortgage

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?

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.

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.

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.

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.

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.

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:

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