Millions of pensioners across the UK have been issued a stark warning that they risk exhausting their annual funds long before the year is out, according to fresh data analysis.
The Alarming Date Pension Funds Run Dry
Research indicates that for those relying solely on the state pension, their annual income will fall short by a significant margin. The analysis projects that the money will run out by November 22, 2026.
This is because the current full new state pension provides £11,973 per year. However, the Pensions UK minimum income standard for a single retiree is estimated at around £13,400 annually.
This creates a substantial deficit of £1,427 every year, leaving hundreds of thousands financially vulnerable.
Who is Most Affected by the Pension Gap?
Analysis of Office for National Statistics data by retirement specialist Just Group sheds light on the scale of the issue. It shows approximately 740,000 single pensioners and around 500,000 households with two retired adults are primarily dependent on the State Pension and benefits.
"The data from the ONS highlights the significant number of pensioners who are mainly dependent on the State Pension and other benefits to support them throughout retirement," said David Cooper, a director at Just Group.
He explained that bridging this gap often means tightening budgets by nearly £119 per month, a challenging feat for many who may not be able to return to work.
Bridging the Retirement Income Shortfall
Experts stress that while the state pension forms a crucial foundation, additional resources are often needed for a comfortable retirement. "People will need to hold a substantial amount in pensions or other savings to top up the state pension," added Stephen Lowe, group communications director at Just Group.
A key piece of advice for those struggling is to check for unclaimed benefits. "One way people may be able to bridge the retirement income gap is by checking if they are entitled to additional benefits. For many, this extra income could significantly improve retirement living standards," David Cooper advised.
This warning underscores the critical importance of financial planning and ensuring all available support is accessed to safeguard living standards in later life.
