Getting the most out of your retirement income in 2025

Practical tips to help you get the most from your finances

Whether you’re looking to squeeze some more out of your budget, explore additional savings options or spend your hard-earned money, here are some practical tips to help you get the most from your finances:

1. Retrace old pensions

If you haven’t already, retracing any old pensions can uncover additional income streams or savings you may have overlooked. The Government’s Pension Tracing Service is designed to help you track down any old workplace or personal pensions.

2. Top up your National Insurance record to maximise your State Pension

If you’re yet to reach State Pension age and have been unemployed without claiming benefits, spent time abroad, taken time off work to raise children or worked part-time or intermittently throughout your career, you might have gaps in your National Insurance contribution record. To qualify for the full State Pension, you need to have 35 years of National Insurance contributions on your record. If you’ve not reached State Pension, you still have the opportunity to maximise what you’ll get by making voluntary National Insurance contributions until 5 April 2025, to help cover any gaps in your record. Making voluntary contributions can boost your retirement income, but you should always seek guidance from HMRC or a financial adviser to avoid overpaying. You can find out more about voluntary National Insurance on the government website.

3. Check for overlooked benefits

• Free prescriptions and sight tests
  With prescriptions costing nearly £10 each and sight tests averaging between £20 and £30, being eligible to receive these for free can be great for the bank. Depending on your circumstances, you might also get things like dental treatments, glasses and contact lenses and more for free too. For more information on what you could be eligible for, visit the NHS site.

• Free or discounted travel
  Once you reach State Pension age in England or age 60 in Wales, you can get a bus pass for free travel. If you live in Scotland or Northern Ireland, you can apply for an older person’s bus pass when you’re 60 too. Taking advantage of this could save you hundreds of pounds a year if you’re a regular bus traveller, so it’s worth a look. Find out more on the government website. You could also be eligible for other travel concessions too. You could buy a Coachcard and save a third on your travel with National Express. You can also get a third off the cost of rail travel with a Senior Railcard.

• Pension Credit
  If you’re above State Pension age and on low income, Pension Credit helps with your living costs. The extra money you get from Pension Credit is separate to your State Pension. If you’re eligible, you can start your application up to four months before you reach State Pension age. To apply, visit Pension Credit.

• Free TV Licence
  If you’re over 74 or you or your partner (who lives at the same address as you) are receiving Pension Credit, you’re eligible for a free TV Licence. A typical TV Licence costs £169.50 per year (set to rise to £174.50 from April 2025), so it’s worth checking to see whether you’re eligible. For more information and to apply, visit the TV Licensing website.

4. Make the most of any remaining Investment Builder (DC) savings you may have

If you have any savings remaining in the Investment Builder, consider how these could complement your regular income. You’re not limited to taking your savings in just one way. You can mix and match your options depending on your plans. Log in or register for My USS to view and manage any savings in the Investment Builder. You will need to take these savings at age 75 at the latest.

5. Stay informed about changes to your pension

Keep your information updated in My USS so that we can keep in touch about your pension. Make sure your personal email address is up to date so we can make sure important documents like your P60s and payslips are to hand when you need them.

6. If you make charity donations, why not make them through USS?

If you make regular donations to a UK registered charity, or plan to, you can choose to do this via USS. You can opt to have charitable donations deducted from your monthly pension payments. You’ll only pay income tax on the amount of pension you receive after the donation has been deducted.

USS works with the Charities Trust – an HMRC-approved non-profit making agency – to distribute donations to verified UK registered charities and good causes. You can find out more about making charitable donations through USS on our page about your pension in payment.

If you’re finding it difficult to manage your finances, remember that support is available. Whether you need advice on budgeting, help with your pension, or guidance on making the most of your income, Age UK offers a range of tools and advice designed to help you.

Published: 9 January 2025