10 Ways to Help Your Elderly Parents Save

The current economic climate is challenging for everyone. Managing budgets, financial planning, cutting costs where possible and becoming more money savvy unites us all, no matter your age, life stage or income bracket. It might be that you’re in the position of looking out for your elderly parent/s’ financial wellbeing too, which can be a little trickier if they’re no longer working/receiving an income, or their pension doesn’t stretch as far as it used to. Helping them to save money, especially with rising costs in energy, healthcare, and daily living expenses can feel like a daunting task. In this article, we’ve put together some practical strategies to help you in supporting them, and hopefully providing you with ideas on how to tackle reducing their costs and managing their finances more efficiently.

1. Evaluate Healthcare Costs

• NHS Services: Ensure your parent/s are making full use of the NHS, which provides free healthcare. Encourage them to attend regular check-ups, which are free for those over 60. Regular check-ups mean catching and treating any illnesses or ailments early on, and can be treated before they escalate and require private or expensive specialist care.
• Help with Health Costs: If they are on a low income, they may be eligible for help with NHS costs such as prescriptions, dental treatment, and eye tests through the NHS Low Income Scheme.
• Prescription Prepayment Certificate (PPC): If they require regular prescriptions, consider a Prescription Prepayment Certificate. The certificate will cover all their NHS prescriptions for a set price, saving them money if they need more than 3 items in 3 months, or 11 items in 12 months.

2. Cut Utility Bills

• Energy Efficiency Grants: Check if they qualify for government schemes such as the Warm Home Discount, Winter Fuel Payment, or the Energy Company Obligation (ECO), which can help with the cost of making their home more energy-efficient and affordable.
• Energy Tariff Comparison: Help them compare energy tariffs to ensure they are on the best possible deal. Many energy providers offer tariffs specifically for elderly customers, but it’s still a good idea to shop around for the best one.
• Smart Meters: Installing a smart meter can help monitor energy use and cut down on unnecessary consumption.

3. Review and Adjust Insurance Policies

• Shop Around for Insurance: Encourage your parent/s to shop around for better deals on home and car insurance. Websites like MoneySuperMarket or Compare the Market can help find cheaper policies.
• Check if Coverage is Still Needed: For older cars or homes, they may not need comprehensive cover, which could save money on premiums.

4. Maximise Pension and Benefits

• Check for Unclaimed Benefits: Ensure your parent/s are claiming all the benefits they’re entitled to, such as Pension Credit, which can top up their income. Many older people in the UK miss out on valuable benefits like Housing Benefit or Attendance Allowance. Once all these savings come together, they can really add up!
• State Pension: Ensure they are receiving their full State Pension. If not, they may be able to make voluntary National Insurance contributions to increase their pension.
• Delay State Pension: If possible, delaying the State Pension can increase their payments when they do start claiming.

5. Reduce Housing Costs

• Downsizing: If maintaining a larger home is becoming a financial burden, you may want to suggest they downsize to a smaller, more manageable, and more affordable property. This can also release equity for other expenses.
• Equity Release: Equity release schemes allow homeowners to access some of the money tied up in their property. However, it’s important to seek financial advice before proceeding with this option.
• Council Tax Reduction: Your parent may be eligible for a Council Tax Reduction, or even full exemption in some cases. This will depend on various factors such as where they live, what they earn (including savings) and whether they live alone.

6. Leverage Senior Discounts and Free Resources

• Senior Discounts: If your parent/s are particularly proud, it may take a little cajoling, but do encourage them to take advantage of senior discounts at UK retailers, restaurants, and travel companies. Many businesses offer discounts for those aged 60+.
• Free Local Services: Many local councils and charities, such as Age UK, offer free or low-cost services including social activities, meals, and transport for seniors.

7. Consolidate Debt and Lower Interest Rates

• Debt Management Plans: If they have debt, consider looking into StepChange or other debt charities that can help consolidate debt and potentially reduce repayments.
• Credit Union Loans: Encourage your parent/s to explore low-interest loans through credit unions instead of high-interest payday loans or credit cards, as credit unions can offer more affordable borrowing options for those on lower incomes.

8. Reduce Food Costs

• Grocery Delivery Apps and Loyalty Schemes: Make sure your parent/s are aware of all the loyalty schemes associated with their local and favourite stores. Help them to use grocery delivery apps or services like Tesco Clubcard, Sainsbury's Nectar, and other supermarket loyalty schemes, which can offer substantial savings.
• Community Schemes: Check if there are local community food schemes or food banks that offer discounted or free food to those in need. Some supermarkets also offer "too good to go" food parcels at a reduced rate.
• Meal Planning and Bulk Buying: Encourage meal planning and bulk buying for long-term savings, reducing food waste, and capitalising on supermarket offers.

9. Review Subscription Services

• Cancel Unused Subscriptions: Review any ongoing subscriptions, such as TV streaming services or magazines, and cancel any they no longer use.
• TV Licence: If they are over 75 and receive Pension Credit, they are entitled to a free TV licence. If not, encourage them to review if they really need a TV licence (e.g., if they only use streaming services like Netflix, they may not require one).

10. Assist with Tax Planning

• Tax Reliefs and Allowances: Make sure they are taking advantage of all the tax reliefs available, such as the Marriage Allowance, where one partner can transfer some of their personal allowance to the other. They may also benefit from the Personal Savings Allowance for tax-free interest on savings.
• Pension Lump Sum: If they have personal or workplace pensions, remind them that they can withdraw up to 25% of their pension pot tax-free.
• Free Tax Advice: Charities such as Tax Help for Older People provide free, independent advice on taxes for those aged 60 and over.

Hopefully, you’ve discovered some new information throughout this article that can help you to continue to support your parent/s’ financial wellbeing. By combining these strategies, you can help your elderly parents maintain a comfortable lifestyle while managing their expenses more effectively during these challenging economic times.