A recent study by retirement specialist Just Group, analyzing data from the Office for National Statistics (ONS), has uncovered that over 1.2 million individuals, including approximately 740,000 single retirees and 500,000 retired couples, rely predominantly on the state pension for their retirement income.
The ONS categorizes households as “mainly reliant” on the state pension if at least three-fourths of their total income comes from the state pension or similar pension-related state benefits.
Despite this reliance, the state pension falls significantly short of the amount needed for a comfortable retirement. According to the Retirement Living Standards provided by Pension UK, a single pensioner requires an annual income of about £13,400 to meet the “minimum” standard of living.
The current full state pension amounts to £230.25 per week, creating a deficit of £1,427 annually for achieving the minimum standard of living in retirement.
Director David Cooper from Just Group emphasizes the importance of bridging the income gap for retirees to attain a basic standard of living. He suggests exploring entitlement to additional benefits as a way to enhance retirement living standards, as many retirees may struggle to secure employment.
The state pension undergoes annual increases under the triple lock mechanism. The upcoming rise in April 2026 will see a 4.8% increase, with the full new state pension rising from £230.25 to £241.30 per week.
Individuals retiring now typically need 35 years of National Insurance contributions to receive the full new state pension amount.
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