Top 10 money saving tips for over 60s

Money saving tips for older people

With the cost of living rising at nearly the fastest rate in 40 years, many older people are facing a challenging time. So it is crucial for older people to be aware of any money saving tips that will help them reduce their spending.

There is a whole host of savings you can take advantage of when you hit your 60th birthday such as travel and cinema discounts as well as benefits you can claim when you reach retirement age.

1. Check to see what benefits you are eligible for

Pension Credit

See if you are eligible for Pension Credit. It is estimated that nearly a million pensioners are eligible for Pension Credit but are not claiming it. Pension Credit tops up pension payments for older people on low incomes.

Winter Fuel Payment

Winter Fuel Payment is an annual tax-free lump sum given to help you to heat your home in the winter. The payment for 2024/25 is between £200 and £300 depending on your age. Anybody born before 23 September 1958 may be eligible.

People of pension age who receive the Winter Fuel Payment are also eligible for a Cost of Living Payment between £150-£300. You should have received this payment at the end of 2023 and you are due another payment in winter 2024.

Cold Weather Payment

Cold Weather Payment is paid during the winter months to help towards the cost of heating your home or other essentials. You will receive £25 for each 7-day period of very cold weather between 1 November 2024 and 31 March 2025. 

Warm Home Discount Scheme

The Warm Home Discount Scheme works with energy suppliers to give you a discount on your electricity bill for the winter. If your electricity supplier also supplies you with gas, you could get a discount on your gas bill instead. 

Eco Scheme

The Eco Scheme works under the government’s Energy Company Obligation (ECO). Now in its fourth stage, referred to as ECO4, the scheme aims to help low-income households cover the cost of energy efficient home improvements.

Fuel Direct Scheme

The Fuel Direct Scheme, also sometimes referred to as third party deductions, allows a person receiving benefits to agree to some of their bills being paid directly out of these benefits payments. 

This means that if you struggle with budgeting or understanding different bill payments, you can rely on the government to pay towards your bills via the benefits you are entitled to.

EBSS Alternative Funding 

If you live in England, Scotland and Wales and use and pay for energy but do not have a direct relationship with an energy supplier which would allow you to benefit from the Energy Bills Support Scheme discount, you are eligible for a £400 discount on your bills.

2. Try and reduce your energy bills

•    Look on comparison websites for the best possible deals for your energy bills.

•    Change all traditional lightbulbs to LED bulbs as this will reduce the amount of energy you are using by around 70-90 per cent and in turn also reduces your energy bill.

•    When you leave a room, make sure you turn the light off.

•    Use the microwave instead of the cooker as this is a simple way of saving energy in the kitchen. Air fryers and slow cookers also use far less energy than your hob or oven.

•    Turn devices off at the plug rather than leaving them on standby when not in use.

•    Draught-proof your windows and doors by stopping up the gaps with sealant tape and draught excluders.

•    Every six months defrost your freezer to ensure it’s running efficiently.

3. Ways to help you heat your home efficiently 

•    Instead of wasting energy heating the whole house set your thermostat to a medium temperature. Use individual thermostatic radiator valves to set the temperature in each room.

•    Make sure all your radiators are clear of clutter. Move any furniture that is in front of them and do not dry clothes on them.

•    Tuck long curtains behind radiators so that heat isn’t trapped. 

•    Draw your curtains in the evenings to minimise heat loss through windows.

4. Tips to help reduce your water bills 

If you are living alone or with your partner then you may be able to save money by getting a water meter fitted.

With a traditional water bill, all households are charged a flat fee. However, if you are a low water user and change to a water meter, you will be billed based on how much you use and it is likely you will pay less for your water.  

5. Ways to help you save money on your food shop

Create a weekly meal plan and a shopping list with all the ingredients needed for each day of the week. This will save you buying unnecessary items.  

Switch from expensive brand foods to own-label options.

Join a supermarket loyalty scheme

Use supermarket loyalty schemes to unlock discounts. Schemes such as Tesco’s Clubcard and Sainsbury’s Nectar will give points when you shop. You can convert these points into money off your shopping or rewards with selected partners. 

Use pulses and vegetables to bulk out your meals

Bulking out dinners with vegetables, beans and lentils can be a great way to make meals go further, for less. Try adding extra kidney beans to chilli con carne and bulky vegetables like cauliflower and broccoli to your favourite curries.

Shop in off-peak hours to buy reduced priced items

Look out for yellow stickers when food shopping. Don’t be put off by the use-by date either. Many ingredients can be safely frozen to be eaten at a later date.

Going to a supermarket an hour before they are closing is a good time to buy reduced items.

6. Change your lifestyle

Giving up smoking and cutting down on alcohol not only makes you feel healthier but can also make a difference to your money too.

Quit smoking 

Smoking is a very expensive habit. In January 2024, the price of an average packet of 20 cigarettes was £15.26. Expensive brands can see smokers paying out as much as £17.55 for a packet of 20.

To find out how much money you could save by stopping smoking (and to see how much you’ve spent so far), use NHS Inform’s Quit Calculator. 

Reduce your alcohol consumption

If you like a regular drink, the NHS recommends consuming no more than 14 units of alcohol per week spread over the course of at least three days rather than one evening. 

As people get older, they prefer to drink at home rather than go to the pub. Research has found that it is the 50- to 64-year-old age group that spends the most on alcohol, £22.30 per week or £1,160 per year, according to NimbleFins.co.uk.

7. Free NHS eye tests

You are entitled to a free NHS sight test if you are 60 or over, registered as partially sighted or blind or have been diagnosed with diabetes or glaucoma.

8. Free prescriptions

Everyone over the age of 60 is entitled to free NHS prescriptions, at the time the prescription is dispensed. 

You are also entitled to free prescriptions if you have a specified medical condition and have a valid medical exemption certificate (MedEx), have a continuing physical disability that prevents you going out without help

9. Use public transport 

• Save a third on train travel – With a National Rail Senior Railcard.

• Free bus pass – In Scotland, Wales and Northern Ireland you can travel for free on the bus when you reach your 60th birthday. In England you have to wait till you are state pension age.

• Free London Underground travel – if you live in London you can travel for free on the tube, buses and other transport.

• Save a third on coach travel – with a National Express senior coachcard.
  

10. Leisure discounts for over-60s

• Discounted cinema tickets – Odeon cinemas across the UK offer a Silver Cinema scheme for those over 60.

• Concession theatre tickets – Many theatres across the country offer concession tickets for those over 60 which are much cheaper than a regular adult ticket. 

• Days out – If you are over 60 and you’ve been a National Trust member for five of the last ten years, you can get a 25 per cent discount on your membership. English Heritage also offer older people a senior discount.