A recent study by retirement specialist Just Group has uncovered the significant number of households relying mainly on the state pension for their retirement income. The analysis of Office for National Statistics (ONS) data revealed that over 1.2 million people, including 740,000 single retirees and 500,000 retired two-adult households, heavily depend on the state pension.
These households, as defined by the ONS, receive at least three-quarters of their total income from the state pension or similar pension-related state benefits. However, the state pension falls short of providing a comfortable retirement living standard. According to Pension UK’s Retirement Living Standards, a single pensioner requires approximately £13,400 annually to meet the “minimum” standard of living.
The current full state pension amounts to £230.25 per week, leaving a shortfall of £1,427 per year to achieve the minimum standard of living in retirement. David Cooper, director at Just Group, emphasized the need for bridging the income gap for retirees to reach a satisfactory living standard, highlighting the importance of exploring additional benefits eligibility.
The state pension undergoes annual increments in line with the triple lock policy, guaranteeing increases each April based on the highest of earnings growth, inflation, or 2.5%. Starting April 2026, the state pension will rise by 4.8%, with the full new state pension increasing from £230.25 to £241.30 per week. For those currently retiring, 35 years of National Insurance contributions are typically required to claim the full new state pension.