Benefits for the Over 60s

Take advantage of all those freebies and discounts

Adding up all those benefits could make a real difference

• Freebies and discounts!
• Financial benefits
• Savings accounts for over 50s

We were recently asked this question on our messageboards:

"My husband recently turned 60 which he is none too happy about (ha ha) but has since found out he no longer has to pay for prescriptions and also now gets a third off rail travel. Are there any other advantages to being over 60?"

We've put together a list of benefits just for the over 60s but if you've found any other fantastic goodies and discounts, or have any more questions make sure you post them on our messageboards.

Freebies and discounts

• You get FREE prescriptions and FREE eye tests.
• FREE BUS PASS - If you're over 60 and you live in England you now get free off-peak travel anywhere in England. Off-peak travel is any time after 9.30am Monday to Friday, and all day at weekends. Click here for information about Scotland and Wales.
• COACH DISCOUNTS - In England and Wales, if you're over 60, you automatically qualify for what's called 'routesixty fares' which means you can travel on most National Express services at HALF PRICE. Scottish Citylink offers Senior Specials call 08705 505 050.
• TRAIN DISCOUNTS - Get a Senior Railcard which costs £24 and saves you one-third on all standard and first class rail tickets. Buy one online here, phone 08457 48 49 50, or pick one up at your local station's ticket office.
• If you live in London get yourself a Freedom Pass which will allow you to travel for free on the buses, tubes, trains and trams in London.
• FREE PASSPORTS - if you were born on or before 2 September 1929 you can get a free passport. If you've applied for a passport since 19 May 2004 apply for a refund. See here for more.
• FREE TV LICENCES - If you are 75+ you can get a TV licence for free. Click here to see how to apply.
• English Heritage gives discounts for the over-60s for both annual and life membership and The National Trust gives over-60s discounts on the life membership.

There are also grants and discounts for senior citizens wanting to take adult education classes. Talk to your local council or directly to the university/college that offer the course to find out more.

Expect discounts for most cinema and theatre tickets as well as swimming and gym sessions. It's also quite likely that there will be cheaper rates at certain hair salons and barbers.

Another great tip is to check restaurant menus - there's often special rates for senior citizens and students. Tradesman like painters, plumbers, electricians may also offer senior citizen discounts so do check. Remember if you don't ask, you don't get!!

All these discounts are unlikely to be more than around 10-15% BUT they do add up so they really are worth taking advantage of.

Financial Benefits

There are so many benefits out there - many of them are means tested but they really are worth the effort and could save you a packet. Don't struggle through your retirement, instead, make the most of any benefits available and make your life that little bit easier.

According to charity Help The Aged over £4.2 billion of means-tested benefits go unclaimed by older people every year. Claiming benefits can seem quite confusing and complex but here's our guide to help you along the way.

Here's a quick run down of the financial benefits you may be entitled to:

• State Pension: The basic allowance
• Pension credit: New benefit that tops up your weekly income.
• Council Tax and Housing benefit: Helping you to pay your Council Tax and rent.
• Funeral payments: Help with the cost of a funeral.
• Social fund: Extra help with other expenses if you're already claiming Pension Credit.
• Winter payments: To help with heating bills in the winter months.

STATE PENSION

You are entitled to a state pension when you reach your state pension age. The state pension age is 60 for women and 65 for men but it is due to change. State retirement pensions are based on your national insurance contributions throughout your working life.

• In 2008-2009, the FULL basic State Pension is £90.70 a week for a single person and £145.05 a week for a couple, but your individual circumstances may affect the amount you get.

If you reach State Pension age before 6 April 2010:

• If you have 25% or more of the qualifying years you'll get a weekly basic State Pension between £22.68 and £90.70.
• If you have less than 25% of the qualifying years, you won't receive any basic State Pension.

If you reach State Pension age on or after 6 April 2010

• If you don't qualify for the full basic State Pension, but have some qualifying years, you will get one thirtieth of the full amount for each qualifying year.

If you're over 80 you will receive a pension whether you made any national insurance contributions or not. It currently stands at £54.35 a week. Apply for this pension in the four months leading up to your birthday.

Also, if you're on a low income you may also get an extra pension called the State Second Pension.

PENSION CREDIT

This is made up of two parts:

• The GUARANTEES credit - this is for people aged over 60 in Great Britain. It guarantees an income of at least £124.05 a week if you are single, or £189.35 a week if you have a partner.
• The SAVINGS credit - this rewards people over 65 who have saved towards their retirement by up to £19.71 if you are single or £26.13 a week if you have a partner.

Look here for more information.

COUNCIL TAX and HOUSING BENEFIT

If you get the guarantee credit part of Pension Credit you will get all your Council Tax paid, though you still have to put in a claim.

Even if you don't get guarantee credit you will get your Council Tax and rent paid if:

• You are 65 or more and have a weekly income of less than £143.80 if you are single, or £215.50 between you if you are a couple OR
• You are aged 60-64 and have a weekly income of less than £124.05 if you are single or £189.35 between you if you are a couple.

If your income is higher than these amounts you may still get some of your Council Tax and rent paid - so ALWAYS CHECK.

Contact your local council and ask about Housing Benefit and Council Tax reductions and benefit.

It can be backdated for up to one year for people over 60 but that will be reduced to three months for claims made from 6 October 2008.

FUNERAL PAYMENTS

If you are receiving one of the above benefits (pension credit, council tax benefit, housing benefit) you may get help with the costs of a funeral if your partner dies - even if you have savings.

Funeral Payment covers necessary burial or cremation fees and up to £700 for any other funeral expenses, such as the funeral director's fees, the coffin or flowers.

You must claim within three months of the funeral. See here for more information.

SOCIAL FUND

If you're receiving Pension Credit you may be able to get a Community Care Grant for things like furniture, household equipment e.g. cooker, fridge, travel costs and storage charges.

You will only get the full grant if you have less than £1,000 savings and you will also be expected to use your own money to put towards paying for anything you need.

It DOES NOT count as income and won't affect other benefits you may be getting.

You can download an application form here or go to your local Jobcentre Plus.

WINTER PAYMENTS

If you're a UK resident aged 60 or over you will get help with the cost of heating your home during the winter.

The winter fuel allowance is a tax free payment so it's really important to claim it. Even better, this money doesn't have to be spent on heating - you can spent it on whatever you like.

You might not be eligible for the allowance if you're in a care home or you've been in hospital and receiving treatment for over a year, or if you don't normally live in the UK.

• If you're between 60 and 79 years old you will receive between £100 and £200.
• If you're over 80 years old the payments will increase and you could get up to £300.

If you live with a partner who is receiving Jobseeker's Allowance or pension credits you will only receive one payment.

People over the age of 60 who are in receipt of retirement pension or pension credit will be eligible for a £10 Christmas bonus.

Savings accounts for the over 50s

Savings products aimed at the over-50s have grown in recent times. In particular online savings accounts have sprung up and according to Ofcom one quarter of all Brits using the internet are aged over 50 so there's no reason why all you silver surfers can't take advantage of any great rates.

BUT - although there are some competitive rates out there for the over 50s, they aren't necessarily the best products overall so ALWAYS SHOP AROUND and do take into account short-term bonus rates that fall away after a set period (usually six or 12 months).

Don't forget you can put up to £3,600 into a Mini Cash ISA or £7,200 into a Maxi Shares ISA and not pay any TAX on it.

• Saga has the Online Top 5 Tracker Account with an AER of 6.26% and min deposit of £1. This comes with a guarantee until 31 May 2010 AND the promise that the interest paid will be no more than 0.25% gross below the previous monthly average of the five top variable rate internet accounts (as quoted by Moneyfacts).
• Coventry Building Society also has the 50 Plus Esave account, paying 6.40% AER, with a minimum deposit of £1. It has a fixed rate for one year - BUT - then drops right down to the Bank of England Base Rate for the first six months.

Here is a table of the best rates for over 50s savings accounts:

Sourced by Moneyfacts.co.uk

Useful links

• DirectGov
• The Pension Service
• Pensions Advisory Service
• Help the Aged
• Age Concern

Related articles

• Save 70% by Switching your Energy Bills
• Sneaky Supermarket Tricks you Need to Know
• Luxury for Less