RETIREES face higher bills of as much as £1,130 by the end of the year as living costs rise.
Energy prices are going up leaving Brits with higher bills, while petrol prices have hit a decade high.
Pensiioners’ cost of living is increasing – even with a state pension rise[/caption]
Food prices are also increasing and inflation is soaring with the Bank of England warning that it could hit 4% this year.
The average couple in retirement face an extra £1,130 in living costs, the Telegraph reports.
That includes, essentials like food, clothing, housing, fuel and power, as well as household goods, transport, health and communications.
But their income is only expected to go up by £229, according to calculations by the Centre for Economics and Business Research, and so they face a shortfall of £672.
That’s despite an expected record rise in the state pension amount next year.
Fresh inflation figures due out this week will show how much the state pension amount will rise by next April.
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The current new state pension is worth a maximum of £179.60 a week and the basic state pension under the “old ” retirement system is worth £137.60 per week.
The wage element of the triple lock has been suspended because Coronavirus has skewed figures.
Instead the state pension will rise rise by a minimum of 2.5% or inflation if it’s higher.
Last month inflation was 3.2% which would give pensioners an extra £300 per year.
New data released last week shows that a couple who want to retire comfortably with holidays abroad need an income of £50,000 a year.
The minimum needed for two people to live off is £17,000 a year, according to the Pensions & Lifetime Savings Association (PLSA) in its Retirement Living Standards report.
The new state pension is worth up to £9,339 each year for individuals, provided they are entitled to the full amount.
Millions of pensioners could be missing out on extra support though, which could cut costs by thousands of pounds a year.
They are being urged to check benefits they could be entitled to as one million are missing out on pension credit alone.
Extra cash you can get if you’re claiming the state pension
There are several perks that you can get as a pensioner, here we explain what’s out there.
Pension Credit gives you extra money to help with your living costs if you’re over the State Pension age and on a low income.
Typically, it is worth around £3,000 a year on average, and you can get extra help if you’re a carer, disabled, or responsible for a child.
There are two parts to the benefit and pensioners can be eligible for one or both parts:
- Guarantee credit – tops up your weekly income to a guaranteed minimum level.
- Savings credit – provides extra money if you’ve saved money towards retirement.
Many people think it’s not worth claiming because the second part may only give them pennies – but it’s worth getting for the other perks that can save you much more.
You could get more help with the following, even if you just get pennies worth of pension credit.
- Housing Benefit if you rent the property you live in
- Support if you own the property you live in
- Council Tax Reductions
- A free TV licence if you’re aged 75 or over
- Help with NHS prescriptions, dental treatment, glasses and free transport costs for hospital appointments
- Help with your heating costs including cold weather payments.
You can find out more about pension credit in this guide.
The exact amount you can get depends on your circumstances so using a benefits calculator can help you work out how much you could get.
How to check what benefits you can get
Using a benefits calculator can help you claim all the money you’re entitled to so you’re not missing out.
Charity Turn2Us’ benefits calculator works out what you could get.
Entitledto’s free calculator works out whether you qualify for various benefits, tax credits and Universal Credit.
MoneySavingExpert.com and charity StepChange both have benefits tools powered by Entitledto’s data.
Policy in Practice’s calculator to not only find out which benefits you could receive but also to find out how much cash you’ll have leftover each month after paying for housing costs.
Your exact entitlement will only be clear when you make a claim, but calculators can show you what you could be eligible for.
Pensioners could find extra cash they didn’t know they had by tracking down a lost pension pot.
One man discovered he had £27,000 he had forgotten about.
Women are being urged to check they are getting the full amount of state pension they are entitled to after payment errors.
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