Don’t forget income boosters that cost NOTHING!

Cut energy bills, slash tax and claim your pensioner perks

There are plenty of ways to maximise your income in retirement. But millions of people are throwing money away every year by failing to claim benefits, tax breaks and perks.

here’s our checklist of what you might be able to use to boost your income.

CLAIM BENEFITS

MOre than £3.5 billion of benefits for pensioners goes unclaimed each year, according to estimates. Pension credit for people on low incomes is a big one that many people ignore.

It’s offered to those who have reached state pension age and is an incomerelated benefit made up of two parts — guarantee credit and savings credit.

Guarantee credit tops up your weekly income if it’s below £159.35 for single people or £243.25 for couples.

The savings credit is an extra payment for those who saved some money towards retirement, such as a pension or investments. But most people who have reached state pension age on or after April 6 2016 won’t be eligible.

even if you find out you are only entitled to a small amount of pension credit, it’s worth claiming as it might help you qualify for other benefits, as well as providing some extra income. Find out if you are eligible at gov.uk/

pension- credit- calculator or phone 0800 991 234.

COUNCIL TAX HELP

YOU may be entitled to help with your council tax bill. It could be waived under the council tax reduction scheme, which replaced council tax benefit.

You could be eligible if you’re on a low income or claim benefits and have reached the state pension age.

If you live alone, you qualify for a discount of around 25 pc, regardless of your financial circumstances. each council applies different reductions. Contact your local council to make an application.

PAY LESS FOR ENERGY BILLS

Older people can get help with gas and electricity bills, which often make up a large proportion of their monthly expenses.

The Government’s warm home discount is designed for pensioners on low incomes and deducts £140 from your overall winter electricity bill. The money isn’t paid to you — it’s a one-off discount on your electricity bill between October and March.

Those who receive the ‘guarantee’ element of pension credit will qualify. You should receive a letter from your supplier if you’re eligible — but if you haven’t and you think you should be receiving it, contact the warm home discount scheme team on 0345 603 9439.

Older people also receive a winter fuel payment of between £100 and £300 tax-free to help pay their heating bills. It is not means tested, so your financial situation won’t be factored in.

Those born on or before January 5, 1953, can qualify for up to £200 this year. Those born on or before September 25, 1937, so over 80s, qualify for up to £300.

This is usually paid automatically between November and december but you will need to make a claim if you have not had it before or have deferred your state pension.

Claim by calling 0345 915 1515. You will need your National Insurance number and bank details. You have until March 31 2018 to claim for winter 2017 to 2018.

You might also be entitled to a cold weather payment if you receive certain benefits. You’ll get £25 for each sevenday period of freezing temperatures between November 1 and March 31.

You can apply from November 1. If you are in receipt of pension credit, you will automatically receive this payment.

WORK YOUR SAVINGS HARDER

There are plenty of generous tax breaks on savings — the key is finding them. You can put up to £20,000 in an Isa each year, which acts as a tax shelter because investment gains, interest, payouts and withdrawals are tax-free. You can split the money between cash savings and stock market investments, and move money between the two. Cash Isas were previously the best bet for savings rates. But now the ‘personal allowance’ allows basic rate taxpayers to earn £1,000 of interest tax-free, or £500 for higher rate taxpayers, standard savings accounts offer better rates in most cases. A free service from savingschampion. can help make sure you’re getting the best return on your cash savings. It requires you to select the savings account you hold from the drop down list. It will inform you if you’re getting a good deal, or if you can do better by switching.

You can then sign up to its alert service to inform you of any changes to your interest rate.

Using a standard savings account means you have the full £20,000 Isa allowance to use on investing in the stock market.

CHECK YOUR TAX CODE

INCOrreCT tax codes are particularly common for pensioners who typically have income from lots of different sources.

even the taxman can get things wrong — and no one wants to pay more than they have to. You will find your tax code on your P45, the PAYe Coding Notice sent by hM revenue & Customs, or on your wage slip if you’re still working.

Pensioners on low incomes can get help from the charity Tax help for Older People at taxvol.org. uk or call 01308 488 066.