Pensioner perks: Grandparent Allowance, cheaper insurance and more

Growing old comes with many benefits, although you may be overlooking some of the financial perks thanks to cheaper prices and some free products.

Grandparent Allowance

Grandparents who look after grandchildren aged 12 or under are able to claim National Insurance credits, which can boost their retirement income.

To qualify, the grandparent needs to regularly look after their grandchild (or grandchildren) and be below State Pension age.

The benefit is called the ‘Specified Adult Childcare National Insurance Credits’ and was introduced in 2011. 

Instead of receiving money, the grandparent receives credits to top up their National Insurance contributions, in the same way they would if they were working.

By receiving these contributions, they won’t miss out on being able to build up their State Pension entitlement.

To claim the benefit, you’ll need to apply with the form ‘CA9176’ which is available via the HM Revenue & Customs website.

It’s also possible to claim for previous years.

Free and discounted travel

In England, you can apply for a free older person’s bus pass when you reach the State Pension age for women (whether you’re a man or a woman).

Those living in London can travel on the bus, tube and Overground trains for free when they turn 60.

In Wales, Scotland, and Northern Ireland, you can apply for a free bus pass when you turn 60. 

These bus passes entitle you to free off-peak bus travel, usually between 9.30 am and the last service during the week, and all day during weekends and bank holidays.

You can apply for the pass online at the Gov.co.uk website. 

Meanwhile, the National Express senior coachcard gives you a third-off standard and fully flexible flares throughout the UK for 12 months. It costs £15 plus £3 postage.

Discounted train travel is also available with a Senior Railcard to those aged 60 or over. It knocks off a third of train tickets.

You can buy one online or in a ticket office for £30 for a one-year pass or £70 for a three-year pass. 

On average, those with a Senior Railcard save £86 each year or £5.26 per journey. You can also enjoy special offers and rewards. When we checked, this included £50 to spend at Virgin Wines and a 5% discount on holidays via Railbookers.

For the even more adventurous, there’s a 10% discount available on Interrail passes, which enable you to explore some of Europe’s most famous cities.

£10 Christmas bonus

There is a little-known £10 bonus paid, usually in the first week of December, to those receiving certain benefits, including the State Pension and Pension Credit. 

The tax-free bonus is paid automatically to those who are eligible.

If you think you should be eligible and haven’t received the Christmas bonus, contact Jobcentre Plus or the pension centre that deals with your payments.

It was first introduced in 1972 to cover the cost of a Christmas dinner and is paid out to around 13 million people each year.

Here’s how much the State Pension is currently worth

Free prescriptions

It now costs £9.90 for an NHS prescription but if you’re aged 60 or over and living in England, you won’t have to pay anything.

Those living in the rest of the UK are entitled to free prescriptions whatever their age. 

You won’t have to pay NI (even if you're still working)

When you start working, you begin to make National Insurance (NI) contributions, which add up to allow you to receive benefits, including the State Pension.

For those who are employed, Class 1 contributions are a percentage of the amount you earn.

Those who are self-employed need to pay Class 2 contributions as a flat rate and Class 4 as a percentage of how much you earn. 

When you reach State Pension age, you stop paying Class 1 and Class 2 contributions, even if you are still working.

You still pay Class 4 contributions if you have taxable profits from the year you reach State Pension age (but these then stop). 

What the Spring Statement means for your money

Cheaper days out

If it’s days out you’re looking for, there are discounts available for those aged over 60. 

A National Trust Senior membership, for example, is 25% cheaper if you’re over 60 and have been a member for the last three consecutive years. This brings the cost down to £68.40 for an individual annual membership or £113.40 for a joint membership. 

Nearly one million senior members benefit from the reduced rates. However, this concession is only available to those applying over the phone: 0344 800 1895.

The English Heritage Society offers a senior pass for £66 (instead of £72) for those aged over 65.

It also offers joint senior memberships for £99 (instead of £126) as well as a joint adult and senior for £111.

Elsewhere, Kew Gardens offers discounts to those 65+, while all over 60s can save money on midweek matinees at the National Theatre in London.

Sports fans can also benefit from reduced prices. Fulham Football Club, for example, offers discounted tickets for those aged 65+.

Golf enthusiasts, however, need to search a bit harder. A study by golfsupport.com found only 45 of 244 clubs offered reduced memberships or other incentives for seniors. However, it has listed clubs offering discounts.

Winter Fuel Payment

If you were born on or before 25 September 1957, you could get a discount on your annual bills in the form of a tax-free lump sum of up to £600 to help pay your energy bill.

This Winter Fuel Payment is made automatically if you’re receiving the State Pension.

But if you’re receiving the Winter Fuel payment, and you think you are eligible, you can make a claim directly by phone or post to the Winter Fuel Payment Centre.

Contact details can be found on this Gov.co.uk webpage.  

Current recipients are in line for an even larger payment than was previously the case, courtesy of the Pensioner Cost of Living Payment which comes on top of the Winter Fuel Payment.

While the Winter Fuel Payment is worth up to £300, it can then by topped up this winter by the Cost of Living Payment, worth a further £150-£300.

Discounts on shopping

If you’re over 60, you can boost your points at Boots and get money off certain products with the Over 60s Rewards scheme – with the Advantage Card.

You can get eight points per £1 you spend on Boots branded products.

On top of this, Over 60 Rewards can save you 10% with Boots opticians, as well as personalised offers and discounts.

Of course, how much money you save or how much you boost your points depends on how often you shop at Boots, and what you buy.

So, if you’re not a fan of Boots branded products and have little interest in the extra benefits, this scheme might not quite be the right fit for you.

Elsewhere, Iceland has a Bonus Card scheme for all shoppers – but it includes a 10% discount in its stores for seniors every Tuesday.

Lower car insurance prices

As you get older, one bill you can expect to go down is your car insurance.

This is because typically older people drive less and shorter distances and are seen as less risky by insurers. 

In comparison, younger drivers have the highest average car insurance premiums because they are statistically more likely to have an accident.

A spokesperson for Direct Line explained: “As a rule of thumb, for motor insurance, premiums do decrease as a driver gets older and more experienced.

“However, statistics show that as drivers continue to age, their claims frequencies are likely to increase.

“Reasons for this are lifestyle changes causing infrequency in driving, and our reflexes diminishing as we get older, which will have an impact on driving abilities and reactions.

“Whilst claims frequency does increase amongst these drivers, these do tend to be less severe than young drivers as they are mostly at low speed.”

Age isn’t the only factor when it comes to car insurance pricing.

There are lots of other elements involved such as your address, the kind of car you have, how often you use it, and your previous claims history. 

So, while on average claims will be lower as you get older, if you live in a high-risk area, or you have previously claimed, your car insurance will reflect this. 

Discounted hotel stays

Several hotel chains offer discounts for senior travellers. For example, Travelodge offers a 25% reduction on its saver and flexible rates.

Princess Hotels & Resorts, meanwhile, offer discounts of up to 10% on visits to their properties in Gran Canaria, Tenerife, Fuerteventura and La Palma.