The perks and benefits of being retired

What are the financial perks of retirement?

When you finally reach retirement, it's not just a life without having to go to work you can enjoy. There are a variety of benefits, discounts and perks on offer once you reach a certain age.

Some are offered by the state - such as pension top-ups, help to meet the cost of energy bills or free and discounted travel. The crucial thing here is that more often than not you have to remember actively to claim them, as millions of UK consumers fail to do so, missing out on valuable income.

Others are available from private companies, covering everything from nights out at the cinema to discounts on sporting season tickets.

What pension and tax benefits can I claim?

State pension

The amount of state pension you're entitled to will depend on the number of the number of National Insurance contributions you've made during your working life, whether or not you were paying into the state second pension, and the year you qualified for the state pension.

You can find out the exact amounts in our guide how much state pension will I get?.

The state pension age is changing. Currently 66 for men and women, it will rise to 67 between 2026 and 2028.

You can find out your state pension age using our state pension age calculator. And for more on how the government helps fund your pension, visit our guide, your state pension and benefits.

Pension credit

Pension credit tops up the state pension for people who are on a low income. Guarantee credit tops your weekly income up to £218.15 in 2024/45 if you're single and £332.95 for a couple.

Savings credit, which has disappeared for those qualifying for the state pension on or after 6 April 2016, provides £17.01 for a single person and £19.04 for a couple per week.

You can apply for Pension Credit by calling the Pension Service on 0800 99 1234.

National Insurance cut

Once you've reached state pension age, you no longer pay National Insurance, even if you're still working.

This can see a significant cut in your annual tax bill. National Insurance is charged at 8% if you're an employee and 6% if you're self-employed, on income between £12,570 and £50,270, and 2% above in the 2024-25 tax year. You can find out more in our guide to National Insurance rates.

Someone earning £30,000 a year would save £1,394.40 in the 2024-25 tax year. Use our income tax calculator to work out your bill.

National Insurance only applies to employment income - so if you retire before state pension age, and you only earn an income from pensions, you won't have to pay National Insurance.

What housing benefits can I claim?

Housing benefit

If your savings are below £16,000 or you're on a low income/claiming certain benefits you might be eligible for housing benefit. The most you can get is a 100% reduction, so it's well worth applying for.

You'll need to apply through your local council if you're only making a new claim for housing benefit.

What energy benefits are there for over 65s?

Winter fuel payment

Winter fuel payments come in the form of a tax-free annual amount. 

You should have had a letter in October or November telling you how much Winter fuel payment you’ll get, if you’re eligible. 

If you did not get a letter but think you are eligible, check if you need to make a claim.

The amount you get is based on when you were born and your circumstances between 18 to 24 September 2023. This is called the ‘qualifying week’.

Retirees get it automatically if they receive the state pension or certain other benefits. The current rates are £200 per eligible household where the oldest person is under 80, and £300 for households containing someone aged 80 or over.

Cold weather payment

These are £25 payments for each seven-day period of very cold weather (average temperature in your area is recorded as being zero degrees Celsius) between November and March.

You'll be eligible for it if you claim any other income-related benefits, such as:

• Pension Credit
• Income Support
• Income-based Jobseeker's Allowance
• Income-related Employment and Support Allowance
• Universal Credit

What travel discounts can I claim?

Free bus pass

The age at which you'll qualify for the free bus or travel pass varies across the UK.

While in Wales, Scotland, Northern Ireland and London you can get a pass for free travel when you reach 60, in the remainder of England you usually only become eligible for one when you reach state pension age.

Concessionary travel also allows some free travel on trains and ferries in Wales and Scotland (under the National Entitlement Card) respectively from age 60.

Londoners can get the 60+ London Oyster photocard at 60, which permits free travel on buses, tube, trams, trains and London Overground after 9am on weekdays (or anytime on weekends), and then switch to the Freedom Pass at 66.

In Northern Ireland, those aged between 60 and 65 qualify for the 60+ SmartPass and then the Senior SmartPass when you reach 66..

Senior railcard

The Senior Railcard, available to travellers aged 60 or over, is a widely-held retirement perk.

It costs £30 a year and enables you to get a third off standard and first class anytime, off-peak and advance fares.

Individual coach and train operators

Some travel operators offer discounts for older people.

For example, National Express has a Senior Coachcard, which costs £15 (plus £3 postage and packing) for 12 months travel and offers a third off your travel. You need to be 60 years old to apply.

London Taxicard scheme

If you live in London, the London Taxicard scheme provides subsidised transport for people with serious mobility problems who find it difficult to use public transport. It is funded by the London boroughs and TfL and managed by London Councils on their behalf.

To apply for the scheme, you must fill in an application form for the London borough in which you live.

Visit the application page on the London Council's website. There is also information about the number of trips you are eligible for each year and the maximum fare you should pay.

What health and wellbeing benefits can I claim?

Disability Living Allowance/Personal Independence Payment

You can get up to £184.30 a week (£108.55 for the care component and £75.75 for the mobility component) to help with the extra costs caused by a disability either under the Disability Living Allowance (DLA) or the Personal Independence Payment (PIP) which has now replaced it.

Existing claimants are being moved from DLA to PIP.

If you're 65 or over and do not get DLA or PIP, you'll need to apply for Attendance Allowance instead.

Benefits for carers

If you spend more than a certain amount of hours per week caring for a relative or friend, you could be entitled to government benefits.

Read more on benefits and allowances for the elderly.

Free prescriptions and eye tests for over-60s

Once you reach 60, you can get free prescriptions and NHS sight tests in England. Prescriptions are free for everyone elsewhere in the UK (as are eye tests in Scotland).

You'll also be entitled to free NHS dental treatment if you're receiving pension guarantee credit.

Specsavers offers over-60s free eye tests and 20% off glasses and lenses from its £69 range or above, including designer styles.

Boots Opticians offer people aged 60 or over that have an Advantage card and are part of the More Treats for Over 60s scheme 10% off glasses or prescription sunglasses.

Find out more about how Which? rates optician stores.

Can I save money on entertainment?

Money off museum visits

Most museums offer concessions for senior citizens - English Heritage and National Trust both offer reduced memberships, too.

Cheap cinema tickets

Odeon holds weekly Silver Cinema screenings for over-55s from £3.50 as a myODEON member. Picturehouse cinema also offer discounted tickets for pensioners, but different prices will apply depending where your local is. 

Discounted sports tickets

Older sports fans can get discounted matchday and season tickets for football, cricket and rugby games. The cheaper tickets are usually for those aged 65+.