Insurance

Your insurance needs may change in retirement depending on your circumstances. It's worthwhile reviewing your cover regularly during retirement. For example, if you no longer have dependents and are debt-free, you may wish to reconsider the need for life insurance.

Older-style insurance policies such as 'whole of life' and 'endowment' policies have a significant savings element, which can contribute to your income when they mature. In some cases, you can change these policies so that your money is released at different dates than those originally planned. 

It's also worthwhile shopping around - your current insurer mightn't have the best deal. Some insurance companies offer seniors discounts of up to 40% on house and contents insurance. Car premiums may also be cheaper, especially for women. However, if changing insurers, make sure you can transfer important benefits such as no claims and loyalty bonuses and cover for existing conditions (when considering health insurance).

The cost of health insurance - and life insurance - may rise dramatically in later life. If you're struggling with rising premiums but don't want to cancel the policy, consider moving to a cheaper option. You might be able to save money by shifting from a full cover policy to hospital only cover. The higher the excess on the policy (the part you pay towards your care) the lower the premium may be.

Age Concern has information on different types of house and contents insurance.

For more information, talk to other retirees about their experiences, or contact a financial adviser or insurance broker using our checklist for financial advice.