Other income sources

Even if you're confident there'll be money coming in from your State Pension, occupational pension and other pension savings, these aren't the only sources of income you can draw on in retirement. To understand some of the other income sources you can rely on post-retirement, read on...

What other income could I get?

Apart from your State Pension and any private or workplace pensions you’ve paid into, there are generally three other sources of income you can use in retirement:

  • savings
  • income from property, and 
  • paid employment.

You may also be entitled to benefits and allowances that could boost your income.


It’s important to understand a fundamental point to begin with: savings and investments are not the same thing. Over time, the value of an investment may fall as well as rise and you may get back less than you put in. Savings on the other hand tend not to be exposed to any significant investment risk. But they can, over time, have their value eroded by inflation. In order to fully review your savings and investments, you should: 

  • Dig out all your details and make sure you’ve not forgotten old accounts in banks or building societies. It’s amazing how the interest may have mounted up over the years.
  • Consider splitting up your savings and, if you feel you can afford it, put some into an account with a longer notice period that’s likely to have a higher rate of interest.
  • Don’t forget that savings may offer peace of mind when it comes to ‘paying for emergencies’, but once they’re gone, they’re gone.
  • Review your long term aims and how much risk you wish to take with your money. For instance, if you have retired, do you want to ensure your savings don’t go up and down with stock market changes, or are you happy to lock your money away for the longer term to ensure you benefit from any growth?
  • Regularly review the best rates on the high street, in the papers and online. Different providers constantly adjust their rates and available products so it’s worth regularly reviewing what you can earn on your savings and investments. You may also wish to consider National Savings & Investments as they are 100% backed by HM Treasury.

Income from property

There are different ways of earning income from property: there’s rental income (in and out) and then there’s money generated via equity release.

Renting out

This is where you rent out a property for a fixed fee – usually paid on a monthly basis. Regardless of how much income you receive, if you make a profit you'll need to talk to HMRC. But you'll only need to report your profit on a Self Assessment tax form if:

  • you make between £2,500 and £9,999 once you have deducted allowable expenses, or 
  • you make more than £10,000 before you have deducted allowable expenses. 

To find out more, read our pages on income from your property.

Renting in

You may have rooms you don’t use in your own home. Have you thought about letting a bedroom and offering access to your kitchen or lounge area? You may even have a spare parking space that someone would be prepared to pay you for.

Want to know more? Check out our pages on income from your property.

Equity Release

Many people dismiss the notion of Equity Release without bothering to find out if it’s suitable. Equity Release has changed and, in some situations, it’s an ideal way to free up a useful source of finance. 

You can find out more on our pages on Equity Release.

Paid employment

It is no longer a legal requirement for anyone to retire at a specific age. You can therefore continue to work - either full or part time - so long as you have the ability or desire to continue in your role. In some cases an employer can force you to retire at a certain age - known as 'compulsory retirment age' - if they do they must give a good reason why, for example:

  • the job requires certain physical abilities (e.g in the construction industry)
  • the job has an age limit set by law (e.g the fire service)

Find out more about working in retirement.

Benefits and allowances

Don’t forget, you may be entitled to more than one kind of benefit when you retire; not all Government benefits are means tested. Read more about winter fuel payment, and pension credit in our benefits and allowances section.