Dosh dilemma: Margaret is retired and scared to spend her savings

Margaret thought retirement would be her chance to slow down, see more of her friends and finally enjoy the things she'd put off for years.

But things haven't quite worked out that way.

Her state pension covers some of her bills, but food, energy and council tax take a big chunk of it. She has some savings tucked away in savings, too. But rather than feeling secure, she's terrified of spending it.

Margaret's children keep telling her she should enjoy herself. But she can't shake the feeling that every pound she spends today could be a pound she desperately needs tomorrow.

After a lifetime of working and managing her money, she feels she should be able to cope.

So, what should Margaret do? Is cutting back the only answer, or could she be entitled to extra help?

Check if you're missing out on pension credit

Margaret's first step should be to check whether she qualifies for pension credit.

You don't need to have zero savings or own nothing to qualify. Even if you've put money aside for a rainy day, you could still be eligible.

Pension Credit tops up the income of eligible pensioners on a low income. Depending on your circumstances, it could be worth thousands of pounds a year. Yet many people who qualify still don't claim it.

Use the government’s pension credit calculator to find out if you qualify.

Even a small award could make a real difference to Margaret's budget.

See if you can get help with council tax

Council tax is another big expense that can eat into a pension.

Margaret shouldn't assume she has to pay the full amount just because she owns her home.

Depending on her income, circumstances and where she lives, she may qualify for Council Tax Reduction. The rules and schemes vary across the UK, so it's worth contacting her local council to find out what help is available.

Don't struggle with heating bills

With winter approaching, Margaret is worried about putting the heating on. But keeping warm is important, particularly for older people and anyone with health problems.

Pensioners in the UK can access several key forms of financial support to help with heating costs and winter wellness.

The warm home discount, for example, is a one-off £150 credit that can help you with your winter energy bills if you’re on certain benefits and qualify.

The government is reportedly considering increasing the discount by a further £100, taking it to £250.

Margaret can also contact her energy supplier to ask about payment plans, available support and whether a cheaper tariff might be suitable.

Check whether you're entitled to disability benefits

Margaret has started struggling with everyday tasks. Getting dressed takes longer, and she sometimes needs help washing and preparing meals.

She assumes disability benefits are only for people who cannot work. That's not true.

Attendance allowance may be available to people over state pension age who have a disability or health condition and need help with personal care or supervision. It isn't means-tested, so savings and income don't determine eligibility.

Make sure you're claiming all the help you're entitled to

Pension credit can open the door to other support, too.

Depending on Margaret's circumstances, she could also qualify for help with NHS dental treatment, glasses and certain hospital travel costs, a free TV licence, and other local support for essential household costs.

Our free benefits calculator can help you see what you could claim.

Give your budget a simple health check

Benefits could make a difference, but Margaret also needs a clearer picture of where her money goes.

That doesn't mean cutting every little pleasure out of her life. It means knowing what she can afford.

She could start by jotting down her monthly income, including pensions and any benefits, alongside essential expenses such as housing, food, energy, insurance and transport.

She could use our budget planner, a free online tool that looks at your income, bills, and spending together.

She should also set aside money for irregular costs, such as home repairs, replacing appliances or unexpected bills.

The aim isn't to make Margaret feel guilty about spending. It's to help her feel more in control.

Remember that money is there to help you live

Margaret has spent years working, raising her family and doing the right thing with her money. It's understandable that she wants to protect what she's saved.

But retirement isn't just about making money last. It's about making life worthwhile, too.

Once she's checked what support she's entitled to and worked out a realistic budget, she may find there's room for some of the things she's been missing.

And if she still feels anxious about spending, talking things through with someone she trusts could help her find a balance between protecting her future and enjoying the present.