A recent study by retirement specialist Just Group has discovered that over 1.2 million individuals, including 740,000 single retirees and 500,000 two-adult households, heavily rely on the state pension as their primary source of retirement income. These households receive at least three-quarters of their total income from the state pension or similar pension-related state benefits, according to the Office for National Statistics (ONS).
The state pension falls short of providing a comfortable retirement living standard, with Pension UK’s Retirement Living Standards indicating that a single pensioner requires an annual income of approximately £13,400 to meet the minimum standard. This leaves a significant shortfall of £1,427 per year based on the current full state pension rate of £230.25 per week.
Director David Cooper from Just Group emphasized the importance of bridging the income gap for retirees to achieve a decent standard of living. He highlighted the need for retirees to explore potential entitlements to additional benefits, as this could significantly enhance their retirement lifestyle. Cooper also mentioned the annual increase in the state pension under the triple lock mechanism, which ensures adjustments based on earnings growth, inflation, or a minimum of 2.5%.
Starting April 2026, the state pension is set to rise by 4.8%, with the full new state pension increasing from £230.25 to £241.30 per week. Individuals currently retiring need a minimum of 35 years of National Insurance contributions to qualify for the full new state pension amount.