Over a million pensioners 'too reliant' on State Pension

03 February 2026

More than 1.2 million retired households across the UK rely heavily on the State Pension to cover their day-to-day living costs, new analysis suggests.

Research based on official Office for National Statistics (ONS) data, carried out by retirement specialist Just Group, indicates that around 740,000 single pensioners and a further 500,000 retired couples are largely dependent on State Pension income.

The ONS classes a household as “mainly reliant” on the State Pension if at least 75% of its total income comes from the State Pension or similar state-provided pension benefits. For many retirees, this means there is little or no additional income from private pensions, savings or employment.

Although the government has recently announced that people relying only on the State Pension will not pay income tax, some pensioners will still struggle to meet everyday costs. 

The Retirement Living Standards published by Pensions UK estimate that a single pensioner needs an annual income of around £13,400 to maintain a minimum standard of living – if they aren’t paying rent or a mortgage. 

However, the full new State Pension currently provides £11,973 a year, creating a shortfall of £1,427. As a result, hundreds of thousands of single retirees may be facing a gap between what they receive from the State Pension and what they need to cover essential expenses. 

When both the annual State Pension and the minimum living costs are spread evenly across the year, the State Pension effectively runs out before the end of November. Just Group have dubbed this point in the calendar “State Pension Shortfall Day”, falling on 22 November.

Accessing additional income in retirement

The findings highlight the growing importance of additional retirement income, such as workplace or personal pensions. For those with money saved into a defined contribution pension scheme, options for turning savings into income include an annuity or income drawdown.

Just Group’s David Cooper also highlights the importance that additional benefits can also play: “One way people may be able to bridge the retirement income gap is by checking if they are entitled to additional benefits. 

“Figures from the DWP show nearly a million pensioners are missing out on Pension Credit, which is specifically designed to support those on lower incomes, at an average amount of £2,600 a year. For many, this extra income could significantly improve retirement living standards, so it’s vital people check if they’re eligible for unclaimed support.”

You can find more information about checking your entitlement to benefits and other tips in our blog: How to boost your income before and during retirement

Source

Analysis of ONS data: More than 1.2 million retired households are largely reliant on the State Pension. Just Group. Accessed 20 January 2026.