There is a pound 14k shortfall for one million pensioners who only receive state pensions

On Saturday, the disparity between the full new state pension and the "minimum" needed for Pensions UK's basic Retirement Living Standards will be highlighted

According to analysis, single pensioners who depend solely on the new state pension would theoretically run out of money this weekend if their expenses are in line with accepted minimum living standards.

In 2025 - 2026, the total new state pension is 11,973. However, in order to meet the minimum Pensions UK Retirement Living Standards, a single pensioner must earn 13,400 annually.

According to analysis by retirement firm Just, if this minimum expenditure and the entire new state pension are distributed equally over a 12-month period, there will be a 1,427 annual shortfall.

Accordingly, the state pension theoretically expires on November 22 of this year, which is referred to as state pension shortfall day. According to this modeling, retirees would have to rely on private income, such as a workplace pension or Sipp (self-invested personal pension), or other savings, such as ISAs, to make up the difference between this day and the end of the year. The state pension is actually paid out every four weeks.

Alternatively, according to research conducted in 2023 by Just, approximately 1.2 million UK pensioners who depend exclusively on the state pension would have to make their payments at a level below Pensions UK's minimum Retirement Living Standards in order for them to last the entire year.

The minimum Retirement Living Standard, according to Pensions UK, covers all of a pensioner's needs, with some left over for social and recreational events, such as a week-long vacation in the UK, dining out once a month, and engaging in reasonably priced leisure activities roughly twice a week.

"In a year when the government launched both a State Pension Age Review and a Commission to consider pensions adequacy, Saturday 22 November marks the day in the year when a single pensioner living to a minimum standard of living would theoretically run out of money if their only source of retirement income was the state pension," stated Stephen Lowe, group communications director at Just Group. A "

To whom does the state pension apply?

According to a 2023 analysis of Office for National Statistics (ONS) data by Just, more than a million retired households in the UK rely mostly on the state pension for their retirement income.

According to the data, 1.2 million households in retirement are "mainly reliant" on the state pension.

Defined by the ONS as a household whose state pension or other comparable pension-related state benefits account for at least three quarters of its total income.

The majority of these households are made up of single pensioners who rely heavily on state pension income; a concerning gender disparity reveals that three times as many women (580,000) as men (180,000) do the same.

About 450,000 households, mostly dependent on state pensions, are two-person retiree households.

What is the amount required for a comfortable retirement?

Figures illustrating the cost of funding a minimum, moderate, and comfortable level of retirement are frequently released by Pensions UK, formerly the Pensions and Lifetime and Savings Association (PLSA).

According to Pension UK, a single person requires 13,400 for a minimum standard of living, 31,700 for a moderate standard of retirement, and 43,800 for a comfortable retirement.

The numbers do not represent income, but rather an estimated expenditure. They make the assumption that you are a homeowner without a mortgage, so depending on your situation, you might need to add or subtract other expenses like a mortgage, rent, social care, and any income tax on your pension.

The numbers are merely estimates, but they indicate that in order to meet the higher moderate or comfortable Retirement Living Standards, retirees would need to find a substantially higher yearly income above the state pension.

Pensioners who want to meet the moderate or comfortable Retirement Living Standards will need to save a lot more money in order to earn the 19,727 and 31,927 annual expenses, respectively. This is presuming that they receive the entire new state pension.

If their spending matched these two higher Retirement Living Standards, people who only receive retirement income from the full new state pension would run out of money much earlier in the year.

"The state pension has seen significant increases in recent years and provides a solid foundation of income in later-life which, as this research shows, is likely to cover the majority of retirees essential spending," Lowe continued.

However, it is obvious that in order to attain the retirement lifestyle that many may desire, people will need to maintain a sizable amount in pensions or other savings to supplement the state pension. A "