A recent study by retirement specialist Just Group has uncovered the significant reliance of over 1.2 million individuals on the state pension as their primary source of retirement income. This figure includes approximately 740,000 single retirees and 500,000 retired couples.
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 standard of living in retirement. The Retirement Living Standards from Pension UK indicate that a single pensioner requires an annual income of around £13,400 to meet the minimum living standard.
David Cooper, director at Just Group, emphasized the substantial income gap between the state pension and the minimum standard of living recommended by Pension UK. He highlighted the importance of exploring potential entitlement to additional benefits to bridge this gap and improve retirement living standards.
The state pension undergoes an annual increase under the triple lock mechanism, ensuring adjustments based on the highest of earnings growth, inflation, or a minimum of 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.
Individuals currently retiring will receive the new state pension, requiring a minimum of 35 years of National Insurance contributions to qualify for the full amount.