A recent analysis by retirement specialist Just Group has unveiled that over 1.2 million individuals, including 740,000 single retirees and 500,000 retired two-adult households, heavily rely on the state pension as their primary source of retirement income.
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.
The current state pension falls short of providing a comfortable retirement. To achieve a minimum standard of living in retirement, Pension UK suggests that a single pensioner needs an annual income of approximately £13,400, significantly higher than the full new state pension of £230.25 per week.
Director David Cooper from Just Group emphasized the gap between the current state pension and the suggested minimum income standard, stressing the importance of exploring additional benefits to improve retirement living standards. Cooper noted that for many retirees, finding employment might not be feasible, making it crucial to check eligibility for unclaimed support to bridge the income gap.
The state pension, which is set to increase by 4.8% in April 2026 in line with wage growth, rises annually under the triple lock mechanism. The full new state pension will climb to £241.30 per week, benefitting those who have paid National Insurance contributions for at least 35 years.
Individuals approaching retirement age are advised to assess their entitlements to supplemental benefits, as these can significantly enhance their standard of living in retirement.