Bills in retirement
Although it would be nice, there aren’t many discounts or dispensations available when you hit retirement age. There’s the winter fuel payment, although that depends on your circumstances, a free bus pass, and a few others. And while they’re certainly helpful, none alone will make a serious financial impact.
Yet, that doesn’t excuse you from covering your costs. You’ll still be expected to pay your home essentials, such as gas, electric, water and Council Tax, on top of everything else you may have to fund. That could be anything, from your weekly food shop to insurance policies to your TV Licence fee.
It can leave you wondering how you’re going to come up with the cash and still have some left over to live the retirement you want, especially after considering the reliance on today’s State Pension.
shows that more than half of over-45s see their State Pension income as the most important factor to their financial comfort in later life, with that figure climbing to almost two-thirds for those 65 and over. In tax-year 2019/20, that’s just over £168 a week. And that’s only if you receive the full State Pension.
But relying on the State Pension could be cause for serious problems. It’s estimated that a two-person pension household spend around £25,000 a year. That’s £322 a week more than the full State Pension income.
With that deficit, according to research
, if you rely on your State Pension alone, you’ll run out of money for the year by September 3. And with bills still to pay, you could find yourself falling into financial difficulties.
There are options available to help you pay your regular bills should you need it, however. Equity release
could be one of them.