A Short Guide to Pension-Age Benefits
Reaching pension age is not something to which many of us necessarily look forward; it is, however, practically and inevitability – and one for which we should be adequately prepared. There are reasons that we are encouraged so heavily to open pension plans sooner rather than later, later-life affordability being chief amongst them.
Thankfully, there are benefits to reaching pension age beyond being able to access your pension fund. Some of these benefits can be extremely useful to retaining independence, and holding on to some quality of life even where other costs get a little too prohibitive. What are these benefits, though?
Winter Fuel Payments
A good place to start is with the Winter Fuel Payment. The Winter Fuel Payment is a government subsidy, made available to anyone born before 25th September 1957. This subsidy is designed to reduce the economic impact of energy bills in the wintertime, and to enable pension-age homeowners to properly heat their home in a time which can be dangerous for elderly health. There are similar schemes that can help lighten the cost of utilities too, including the Warm Home Discount which can help recipients of Pension Credit by discounting energy bills.
Free TV License
An underrated perk of reaching old age is being able to enjoy live television cost- and guilt-free. If you are over the age of 75 and in receipt of Pension Credit, you are able to apply for a free TV license. With TV licenses representing £169.50 in annual costs, this perk is certainly not one to be sniffed at.
Free Bus Travel
One of the more well-known benefits of older age is the free and unfettered access to public transport. This is managed on a franchise-by-franchise basis, but local public transport service companies will often offer a free pass to those over 66, or in many cases simply over 60. Being able to ride the bus for free is a godsend for keeping active and curious.
Access to Equity Release
While not a universal government allowance, there is another benefit that retirement-age individuals can access with regard to private financing. Equity release is a form of financial product that advances an individual some of their property’s value as a loan, the loan being repayable on the eventual sale of the property in question.
Equity release is not available to individuals until they reach the age of 55, and even 65 in certain specific cases. An equity release calculator can help you figure exactly how much equity you can access personally, with different properties yielding different financial situations. Equity release schemes can be highly useful for later-life quality-of-life improvements, such as funding the installation of an elevator or stairlift. They can also render bucket-list holiday plans much more easily accessible where your finances are otherwise tied-up!