A recent study has unveiled the significant number of households that heavily rely on their state pension as their primary retirement income source. According to data analyzed by retirement specialist Just Group from the Office for National Statistics (ONS), over 1.2 million individuals, including approximately 740,000 single retirees and 500,000 two-adult retired households, are predominantly dependent on the state pension.
The ONS categorizes households as mainly reliant on the state pension if at least three-quarters of their total income comes from the state pension or similar pension-related state benefits. However, the state pension falls below the recommended amount for a comfortable retirement. The Retirement Living Standards by Pension UK indicate that a single pensioner ideally requires an annual income of around £13,400 to achieve a minimum standard of living.
The current full state pension amounts to £230.25 per week, resulting in a shortfall of £1,427 annually for meeting the minimum retirement living standard. David Cooper, director at Just Group, emphasized the necessity for additional financial support for retirees to bridge the income gap and enhance their living standards. Cooper suggested exploring potential eligibility for unclaimed benefits to improve retirement finances and overall quality of life.
The state pension undergoes an annual increase in accordance with the triple lock policy, ensuring adjustments every April based on the highest of earnings growth, inflation, or a minimum of 2.5%. As of 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 and the old basic state pension from £176.45 to £184.90 per week. Individuals seeking to claim the new state pension now typically need 35 years of National Insurance contributions to receive the full amount.
