A growing number of older UK pensioners are facing significant financial hardship, with state pension payments falling well short of the income needed for a basic standard of living. According to analysis published by the Joseph Rowntree Foundation, a single pensioner needs £17,400 a year (pre-tax) to cover essential costs and participate in society.
However, two-thirds of pensioners (age 66+) are on the old state pension, which pays just £9,175 a year for the basic element, so are left with an £8,225 shortfall, especially if they do not receive additional earnings-related payments such as SERPS. Around 1.5 million pensioners fall into this category.
Even recipients of the full new state pension of £11,973 (post-2016) face a considerable income gap. Peter Matejic of the Joseph Rowntree Foundation emphasised that even with pension credit and winter fuel payments, those without personal pensions are still falling below the minimum income threshold, highlighting the need for better benefit levels and stronger retirement saving opportunities.
