A recent study by retirement specialist Just Group has uncovered the significant number of households relying mainly on the state pension as their primary source of retirement income. The analysis of Office for National Statistics (ONS) data revealed that over 1.2 million individuals, including approximately 740,000 single retirees and 500,000 retired two-adult households, heavily depend on the state pension.
According to ONS criteria, a household is classified as 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 comfortable retirement lifestyle. The Retirement Living Standards from Pension UK indicate that a single pensioner requires an annual income of around £13,400 to achieve a minimum standard of living.
To bridge the income gap for retirees, it’s crucial to explore potential eligibility for additional benefits. David Cooper, director at Just Group, emphasized the need for retirees to assess if they are entitled to unclaimed support, as this could significantly enhance their retirement living standards. With the state pension increasing annually in line with the triple lock mechanism, retirees can anticipate a 4.8% rise from April 2026, with the full new state pension set to increase to £241.30 per week.
Individuals currently retiring typically need 35 years of National Insurance contributions to receive the full new state pension amount. It is essential for retirees to stay informed about their entitlements and explore options to optimize their retirement income.