A recent study has unveiled the significant number of households relying heavily on their state pension as their primary source of retirement income. According to analysis conducted by retirement specialist Just Group on Office for National Statistics (ONS) data, over 1.2 million individuals, including 740,000 single retirees and 500,000 retired two-adult households, are predominantly dependent on the state pension.
These households are defined by the ONS as those receiving 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 meeting the recommended standard for a comfortable retirement. The Retirement Living Standards set by Pension UK indicate that a single pensioner should ideally have an annual income of around £13,400 to maintain a “minimum” living standard.
The full new state pension amounts to £230.25 per week, leaving a shortfall of £1,427 annually to reach the minimum standard of living in retirement. David Cooper, director at Just Group, emphasized the need for retirees to bridge this income gap, which often leads to budget constraints. Exploring entitlement to additional benefits could help improve the living standards of retirees facing financial challenges.
The state pension receives an annual increase in line with the triple lock mechanism, guaranteeing a rise each April based on the highest of earnings growth between May to July, inflation in September, or a minimum of 2.5%. As of April 2026, the state pension is set to increase by 4.8%, with the full new state pension rising from £230.25 to £241.30 per week and the old basic state pension increasing from £176.45 to £184.90 per week.
Individuals currently retiring are eligible for the new state pension, requiring a minimum of 35 years of National Insurance contributions to receive the full amount. It is crucial for retirees to assess their eligibility for unclaimed benefits to enhance their financial well-being during retirement.
