The state pension is set to increase to £11,973 thanks to a 4.1 per cent Triple Lock this year – but will still fall short of what state pensioners need for a comfortable retirement. According to the Pensions and Lifetime Savings Association, a single person requires £14,400 annually for a minimum living standard.
It means a £2,427 shortfall for pensioners. “The shortfall isn’t just financial, it’s psychological,” explains a spokesman for Funeral Guide. “Many people are realising too late that their savings are inadequate, leading to anxiety about the future and fears of losing independence in later life.”
The full new State Pension provides just £11,542 per year, a figure that falls drastically short of the £14,400 the Pensions and Lifetime Savings Association (PLSA) estimates as necessary for a basic standard of living. For couples, that figure rises to £22,400, underscoring the widening gap between what people need and what they can expect to receive.
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“Retirement planning isn’t just about numbers, it’s about understanding how those numbers translate into real-world living standards,” says Funeral Guide’s spokesperson. “Without better education and clearer communication, many will continue to find themselves unprepared.”
“It’s not just about ensuring everyone saves, it’s about recognising the different hurdles people face and tailoring solutions accordingly,” Funeral Guide advises. “Retirement readiness isn’t just a personal issue, it’s a societal one,” notes Funeral Guide.
“Addressing it will require a collective effort involving individuals, employers, and policymakers.” The state pension is set to increase by 4.1 per cent in April 2025, following the triple lock guarantee which ensures rises based on the highest of inflation, wage growth, or 2.5 per cent.
The increase will be determined by wage growth figures, pushing the full new state pension from £221.20 to £230.30 per week. Those on the basic state pension will see their weekly payments rise from £169.50 to £176.45.