Millions of pensioners are set to hit a financial breaking point far sooner than they realise.
New figures show the state pension falls short long before the year is over, leaving retirees suddenly dependent on other income just to stay afloat.
Single pensioners who rely only on the full new state pension will hit a difficult point this Saturday, 22 November. Their yearly income would, in theory, "run out" if they spend at the basic retirement level.
This date is known as State Pension Shortfall Day. It highlights the gap between government support and the true cost of living in retirement.
The calculations from Just Group assume the state pension is spread evenly across the year while meeting the Pensions and Lifetime Savings Association’s minimum retirement standard.
After November 22, pensioners would need private pensions or savings to cover the rest of the year.
Stephen Lowe, group communications director at retirement specialist Just Group said: "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."
The state pension for 2025 to 2026 is £11,973. The basic retirement standard is £13,400. That leaves a £1,427 gap that pensioners must cover to maintain even a modest lifestyle.
The gap is far bigger for those aiming for more than the basics.
Retirees seeking more substantial lifestyles face considerably larger funding requirements
| PAThe moderate retirement standard requires £31,700 a year, so the state pension would run out by May 17.
A comfortable retirement needs £43,800 a year, and the state pension would run out by April 9.
The basic retirement standard encompasses essential requirements alongside modest recreational activities.
This includes an annual UK-based holiday, dining out approximately monthly, and participating in budget-friendly leisure pursuits roughly twice weekly.
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The basic retirement standard encompasses essential requirements alongside modest recreational activities
| GETTYRetirees seeking more substantial lifestyles face considerably larger funding requirements.
The moderate standard necessitates yearly expenditure of £19,727, whilst those pursuing comfortable retirement must generate income totalling £31,927 annually.
These elevated standards demand significantly greater private pension accumulation or alternative savings beyond state provision.
The disparity between state support and lifestyle expectations underscores the critical importance of personal retirement planning for those seeking anything beyond basic subsistence in later years.
Britons will need to hold a substantial amount in pensions or other savings to top up the State Pension in order to achieve the lifestyle they want
| GETTY/PAMr Lowe said: "In a year in which 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.
"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.
"However, it is clear that people will need to hold a substantial amount in pensions or other savings to top up the State Pension in order to achieve the lifestyle in retirement many may want."
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