New data reveals the significant reliance of a large number of households on their state pension as their primary source of retirement income.
A study by retirement specialist Just Group, analyzing Office for National Statistics (ONS) data, found that over 1.2 million people, including approximately 740,000 single retirees and 500,000 retired couples, heavily depend on the state pension for financial support.
According to the ONS, a household is considered largely reliant on the state pension when at least three-quarters of its total income comes from the state pension or similar pension-related state benefits.
The state pension falls short of providing a comfortable retirement living standard. The Retirement Living Standards by Pension UK indicate that a single pensioner requires an annual income of around £13,400 to meet the “minimum” living standard.
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The current full state pension amounts to £230.25 per week, resulting in a £1,427 shortfall annually to meet the “minimum” retirement living standard.
David Cooper, director at retirement specialist Just Group, emphasized the challenge faced by many pensioners relying mainly on the state pension for financial stability.
Cooper stated, “The ONS data underscores the significant number of retirees heavily dependent on the state pension and other benefits for their retirement income. The gap between Pension UK’s minimum income standard and the current state pension highlights the financial challenge for hundreds of thousands of retirees striving to attain a basic living standard in retirement.”
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