A recent study by retirement specialist Just Group has unveiled the significant reliance of over 1.2 million individuals on the state pension for their retirement income. This figure includes approximately 740,000 single retirees and 500,000 retired two-adult households who are predominantly dependent on state pension funds.
According to the Office for National Statistics (ONS), a household is considered mainly reliant on the state pension if at least three-quarters of its total income comes from the state pension or similar pension-related state benefits. However, the state pension falls short of providing a sufficient income for a comfortable retirement. The Retirement Living Standards from Pension UK suggest that a single pensioner needs an annual income of around £13,400 to meet a “minimum” standard of living.
The current full state pension amounts to £230.25 per week, resulting in a shortfall of £1,427 annually to achieve the minimum standard of living in retirement. David Cooper, director at Just Group, emphasized the substantial gap between the state pension and the minimum income standard recommended by Pension UK. Cooper highlighted the necessity for retirees to explore potential eligibility for additional benefits to bridge this income gap and enhance their retirement living standards.
The state pension undergoes annual increases under the triple lock system. This year, the state pension is set to rise by 4.8% from April 2026, with the full new state pension increasing to £241.30 per week. Individuals currently retiring are required to have 35 years of National Insurance contributions to receive the full state pension amount.