Bacs cookie policy

We use cookies on our website to provide you with the best possible online experience. By continuing to use this site, you give consent for cookies to be used. Please read our cookie policy for more information and details on how to change your preferences. Cookie Policy

Follow us

Living on a pension

At retirement most working people begin to collect their State Retirement Pension, which is based on the National Insurance contributions you made during the course of your working life.

Since 2005, the Government's Department for Work & Pensions (DWP) has paid this money straight into your bank account via a Bacs Direct Credit payment. This saves you from making a trip into town to collect your money and from carrying the cash home with you, which could be a worrying and time consuming experience.

Many people fail to claim the state benefits they are entitled to. Don't be one of them. If you paid National Insurance contributions during your working life be sure to find out what you qualify for and get it paid by Bacs Direct Credit - safely straight into your bank account.

Says Bob: "I find it easier to plan our outgoings, now that we know exactly when the money is going to be paid in."

Of course many people also prepare for their retirement by making regular contributions to a private pension scheme and topping up their cash ISAs. If you are at this stage remember to choose a date just after pay day for these funds to come out of your bank account.

"It has been amazing how quickly these regular payments added up and this money now supplements our state pension," enthuses Rose.

When you are living on a fixed income like a pension, it is also important to keep on top of household bills. Paying by Direct Debit allows you to spread the cost of electricity, gas and your council tax rather than having to take a big lump sum out of your savings. This makes budgeting much easier and takes away the fear of being landed with an unexpectedly high bill.

Of course, if you are thinking of taking a long holiday abroad during your retirement, Direct Debit can automatically take care of many of the bills back home.

For more information on how to set up a Direct Debit and how the Direct Debit Guarantee can provide you with peace of mind, visit Direct D​ebit explained.​

Follow us