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Stretch My Pension
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What can I spend this week?

Three short steps: your pensions, your bills, then food and treats. At the end you'll see one clear number to live by each week.

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A weekly budget that puts warmth and food first

Living on a pension means the money coming in is mostly fixed, while prices for energy, food and council or property taxes keep rising. The news talks about pensioners having to choose between heating and eating. A simple weekly budget helps you avoid that choice by making sure the essentials are paid for first, before anything else.

This calculator works in three steps:

  1. Money coming in. Your state pension, any private or workplace pension, and any other regular payments, such as Pension Credit or a disability benefit. Use the amount that arrives in your bank.
  2. Regular bills. Rent or mortgage, council or property tax, gas and electricity, water, phone and TV, insurance and anything else that goes out regularly. Each one can be weekly, monthly, quarterly or yearly.
  3. Food, treats and a rainy-day pot. Your weekly food shop, plus small amounts to put aside for treats and for the unexpected.

What's left is your weekly spending money: the amount you can use freely for everything else, from a bus fare to a birthday card, without worrying that the bills won't be paid.

Why we include treats

Budgeting isn't only about cutting back. Retirement should have some joy in it, and a small amount put aside every week means you can say yes to a meal out, a day trip or a present for the grandchildren without guilt, because it's already been planned for. Even a few pounds, dollars or euros a week adds up to something special in a few months. Our little luxuries saver works out exactly how much to set aside for the treat you have in mind.

A worked example

Margaret gets a state pension every four weeks and a small workplace pension monthly. Together they come to about 260 a week on average. Her rent, council tax, energy, water, phone and insurance come to about 150 a week. That leaves 110.

She sets aside 50 for her weekly food shop, 10 for treats and 5 for a rainy day. That leaves her 45 a week, or about 6.40 a day, to spend on anything else. After three months her treats pot has about 130 in it: enough for a lovely lunch out with her sister.

Tips to make a pension go further

  • Check what you're entitled to. Many pensioners miss out on top-ups and discounts worth a lot each year. See our guide to money you might be missing.
  • Spread big bills. Paying energy, water and council tax in equal monthly amounts avoids nasty surprises in winter. Ask about payment plans if you're behind.
  • Ask about social tariffs. Many phone, broadband and water companies have cheaper deals for people on a pension or benefits. They rarely advertise them, so ask.
  • Heat yourself, not the whole house. An electric blanket or heated throw costs pennies an hour compared with heating every room. See what your heaters cost with our keep warm for less calculator.
  • Use cash for spending money. Some people take their weekly spending money out in cash on the same day each week. When it's gone, it's gone, and there's no risk of going overdrawn.
  • Review it every few months. Pensions usually rise once a year, and bills change. Come back and update your numbers when they do.

A word about scams

Because pensions arrive like clockwork, scammers target older people with calls about "problems" with bank accounts, pensions and energy bills. No genuine bank, pension provider or government office will ever ask you to move money or tell them a PIN or code over the phone. If a call worries you, hang up and use our scam call checker.

Questions people ask

›Why budget by the week instead of the month?

A week is short enough to keep track of in your head. If you know you have a set amount to spend each week, it's easy to see when you're running ahead and to ease off for a few days, long before the end of the month.

›My state pension is paid every four weeks. How does that work?

Choose 'every 4 weeks' next to it. The calculator turns every payment and bill into an average week (a year has 52 weeks), so pensions paid every four weeks and bills paid monthly line up properly.

›Should I include my winter fuel or heating payment?

If it's a one-off yearly payment, add it as a payment with 'a year' selected. It then counts as a little each week. Many people prefer to leave it out and use it to pay the biggest winter energy bill instead. Both are fine.

›Is my information saved or shared?

Your numbers are saved only in this web browser on your own device, so they're there when you come back. They're never sent to us or anyone else. 'Start again' clears them.

›What if my budget doesn't add up?

You're not alone, and there's often help available. Start by checking for money you might be missing, such as pension top-ups, council tax discounts or help with heating. A free, not-for-profit money advice service can also look at your situation with you.