Over a million retired households in the UK are largely dependent on the State Pension for their retirement income, according to analysis of ONS data from retirement specialist Just Group.
The data reveals that 1.2 million retired households are “mainly reliant” on the State Pension, defined by the ONS as a household that has at least three quarters of its total income provided by the State Pension or other similar pension-related state benefits.
Single pensioners account for the majority of these households largely reliant on State Pension income, with a worrying gender imbalance showing that three times as many women (580,000) as men (180,000) rely primarily on the State Pension.
The PLSA has calculated the annual Minimum Income Standard for a single pensioner should be £12,800 a year. The State Pension is currently £10,600 creating a shortfall of £2,200 every year to meet the PLSA’s minimum standard. And even with the projected 8.5% increase added by the triple lock taking the State Pension to around £11,500 per annum, pensioners reliant on the State Pension would still fall short of this minimum income standard by £1,300 every year. Stephen Lowe, group communications director at retirement specialist Just Group, said:
“The wide-spread financial fragility and state income dependence highlighted in our research places even greater pressure on the Chancellor to confirm the triple lock in Wednesday’s Autumn Statement. Maintaining the triple lock could be a lifeline for the vast number of pensioners whose livelihoods depend on the State Pension keeping up with costs of living.”