Ways We Save Large Sums of Money in Retirement

In a previous post ‘How to Manage Money to Prepare for Retirement’ I mentioned that the Pensions and Lifetime Savings website gave an idea of the amount of money you’d need to retire in the United Kingdom. I also said that my partner Paul and I had a higher standard than our income would suggest. This could be because there are many areas of our life where we save hundreds if not thousands of pounds each year. I thought that I’d group these into broad categories. Maybe they will give you food for thought. Remember every saving means less hours that you have to work.

Doing Home Improvements and Repairs Ourselves

I’m lucky enough to have found myself one of the handiest men on the planet. There isn’t a DIY task that Paul can’t put his hand to. On many occasions I act as his lackey and I’m not without skills of my own. For example I’m a competent seamstress. Last year I upholstered this window seat that we installed to replace our sofa. We just need to finish painting it and putting handles on the drawers now.

Last year we’ve saved thousands of pounds, probably amounting to one of our full-time salaries when we were still working. We retiled the roof, replaced a decrepit stone wall with a wooden fence, built cycle and log stores, did major repairs on the motorhome and decorated the outside of our house. The savings are likely to continue next year when we finish landscaping the back garden and start refitting the kitchen.

If you don’t have these skills I wonder whether it’s worth acquiring some through taking classes or working alongside a tradesperson before you embark on a project. You may also be able to save money by acting as the labourer when you’re working on your property. We achieve some of our biggest savings as friends work for us for free. In return Paul does repairs and maintenance on their houses, boats and vehicles. It’s a win-win situation.. Now there are skill swap organisations that mimic our informal arrangements. However the feasibility of using these depends on how active a scheme is in your own community.

Of course we reduce our costs too by sourcing materials ourselves. This is undoubtedly cheaper than through a professional. We also saved a packet on skip hire too this year when a local stonemason took away the big rocks that made up that tumbly down wall.

A Sort of One Car Family

Before retirement we had three vehicles. Actually there was four if you counted Paul’s work van from his employer. Even though there were no running costs associated with this we did save money when he returned it. There’s now room to park Klaus the Knaus, our motorhome on our driveway. That’s thirty pounds a month in storage costs that we don’t have to pay anymore. We also ‘SORN’ him in the months that he isn’t used. By registering him as off the road we save hundreds of pounds a year in road tax.

What’s more having Klaus outside our home is ever so convenient. We can pack and unpack, maintain and repair the van so much more easily. We’ve even got a spare room with wheels right outside our house!

So now we only have two vehicles. Our main run around is a Vauxhall Astra Estate, a veritable work horse. We got rid of my car at the end of its lease. In doing so we probably save nearly one thousand pounds a year because of a reduction in road tax, insurance, MOTs and maintenance costs.

Okay there are occasions when having two cars would be very handy. But actually these are few and far between. We plan ahead if one of our needs to go somewhere. And of course there’s public transport if the car isn’t available.

Adopting a Low Mileage Lifestyle

This year has been unusual in that I’ve gone back and forth across the country more times than I can remember. But, because my Mum and Dad don’t have any professional care (long story!), my train fares are paid for out of their attendance allowance, a benefit paid to meet the costs of support.

Aside from this and the occasional holiday we pretty much stay put in the vicinity of our house. The picture above shows our hometown. Why would we want to escape too often? We have a large friendship group and are able to pursue our hobbies locally. We routinely walk and cycle when we make short journeys. When we use the car we try to multitask. As such we normally only use a tank of diesel every four to six weeks.

If I had a part time job to supplement my pension working locally would be one of the most important factors that I’d consider so that motoring costs were not an expense of employment. Yes I save money by not working but that might be a topic for another post.

Looking Out for Freebies

I’m brilliant at this. So good that Paul is embarrassed by my habit of ‘grubbing about’. But he can talk! Look at all that firewood that he’s collected.

This year I’ve acquired a greenhouse and staging including all but four bits of its glass, two compost bins, masses of flower pots, a lemon tree in a posh pot and a Dawes bike from my Mum with paniers gifted separately. Then there’s a few bits and pieces that we’ve salvaged from my parent’s house while preparing for their move, most notably large power tools. Now these were all thing that we would have planned to buy anyone and not extra bits and pieces that clutter up our home and allotments. There’s got to another lot of four figure savings here too.

Cutting the Cost of Major Purchases

We are very good at getting bargains if we say so ourselves. Some things we’ll buy secondhand. Lots of the bigger tools come under this category. Our concrete mixer is a good example. It cost about seventy quid on eBay and we have used it to death this year on our own projects and those of our friends. It would have cost us a bomb to buy new or to hire for all the jobs its been needed for. Once we’ve finished with it we’ll sell it again, probably for the same price as we bought it.

Then of course there are sales and we’ve had some genuine bargains on Amazon Prime days. Our air fryer was one of these, a hundred pounds cheaper than normal. The other source of deals on Amazon are returned goods from their warehouse. I needed a new phone this year and got mine about fifty pounds cheaper than the new price. It was still in its box and hadn’t been touched.

We’ve been exploring a new source of bargains this year and got a Neff oven and a Zanussi hob, both new, from a proper auction house website. A successful bid can look like an absolute bargain. However you need to add on buyers fees, VAT and delivery charges. These significantly increase the cost. Even so both items came in at about half their retail price.

Savings on Food Costs

Our grocery bills seem to be considerably less than the national average. Our shop provides for four adults for the same cost as the typical estimate suggests is needed for two people. We probably make savings of between two and three thousand pounds as a result.

We adopt a multi-faceted approach. No doubt you’ll have heard most of our savings techniques before: reducing food waste, cooking from scratch, stocking up and using the freezer when there are savings to be had on staples, using store loyalty schemes and buying in bulk. The good thing about being retired is that we’ve got extra time to shop around and make these savings. Note that I don’t include the cost of my allotment produce when accounting for savings. Paul would but he is wildly optimistic when it comes to estimating. When you take into account seeds, plot rental and equipment I think we probably break even.

During lockdown we started to buy our bread flour in bulk. When the first 16kg sack arrived I didn’t think that we’d get through it. What a doubting Thomas. My concerns were unfounded. Now we probably place orders for white and granary three or four times a year.

We are particularly chuffed with our Boxing Day turkey haul. Even in years when there’s a purported shortage of the Christmas bird we’ve never had problems finding them in the supermarket yellow sticker section on the big day. These are good quality produce like the Norfolk Bronze variety which would have been selling for a fortune for a few days before. We take home our bounty and flat pack multiple portions for stews, pies and curries later in the year.

Choosing Hobbies Wisely

Hopefully you’ll have a bit of spare time in retirement although, my own experience shows, it might be less than you originally thought. We probably save hundreds of pounds a year by picking hobbies wisely, Mostly they are activities where the ongoing costs of participation are minimal. Okay we sometimes have to fork out on equipment. The tools for gardening and DIY, kayaks, e-bike conversion kits, wetsuits, fishing equipment and outdoor gear spring to mind when considering our own expenditure but these are one offs.

We avoid membership fees and weekly classes. These costs can all add up. Having said that, for other people, this type of outlay might be good value. One of my friends has enjoyed her gym membership for over twenty years. Each class and swimming session works out a fraction of the cost of visits if these were paid for separately. Previous experience has shown that this would be a complete waste of money for me. I start with good intentions and then it all goes tits up. Exercising outside is my preferred choice and its free.

Home Haircutting

Paul and I have been cutting our own hair for years. We must save hundreds of pounds in annually by using our Wahl Clippers. I wouldn’t buy from another maker. I have tried another famous brand model that makes razors too. Let’s just say that it didn’t cut the mustard….or the hair!

My own model are so old now. I bought them over a decade ago and ,don’t think they’re made anymore. If I was buying today I’d probably go for a professional version but not cordless. I’d be scared of only cutting half a head before the battery running out.

When I was younger I used to have very short hair, a grade two or three. However in recent years I’ve let my curls grow.. I still use the clippers though with longer comb attachments, grades 10 and 12. When I bought these they were difficult to get hold of. I had to send them to a friend’s house in America as they couldn’t be shipped to the UK. But now they’re available on Amazon in a set of three which includes an even higher grade 16. I’m sorely tempted to buy this myself even though I will have duplicate combs. The longer length will be ideal.

Now for those of you who are nervous about cutting their own hair you should be! I’ve lost half an eyebrow once. Also Paul won’t allow me to go anyway near his hair again after I created an uneven pudding basin cut. A hairdresser friend who normally never mixes their business and social life took pity and tidied that up. But I’d say that the savings made override the occasional accident. Hair grows back! And I’ve always felt awkward and out of place at the hairdresser.

Disclaimer

This post contains links to companies and organisations just because I’m happy with the products or services that they supply or I’m spreading the word about what they do. There may also be affiliate links to Amazon for books and other items that I am personally recommending. If you decide to make a purchase from them, I might get a little bit of commission at no cost to you.