State pension income made up an average of 57 per cent of the total retirement income for those aged over 65, with the state pension age providing “the bedrock for later life”, according to research from Just Group.
This increases to 90 per cent for those with a retirement income of less than £5,000 per annum, while nearly three quarters of those aged over 65 received at least half of their income from the state pension.
For those with a retirement income of more than £20,000 per annum, state pension comprised an average of just 28 per cent of their income.
Just Group revealed that figures differed between genders, with an average of 68 per cent of female retirement income received from their state pension, compared to just 44 per cent of the average males.
The research also found, following the recent state pension age changes, 65 per cent of those aged over 65 started thinking about being able to afford to retire before their state pension age, while 18 per cent said it was once they reached state pension age.
Just Group group communications director, Stephen Lowe commented: “The significance of state pension age on most people’s lives should not be underestimated – for many it marks the point where people can finally afford to step back from work and it provides the financial bedrock for later life.”
While only 15 per cent of those aged over 65 said that they were able to retire completely living off the state pension, 57 per cent said that state pension combined with their own savings had allowed them to retire.
However, 8 per cent said that they still needed to work to supplement their income, 7 per cent said it had allowed them to go part time, while 3 per cent said they could switch to a less stressful job.
Lowe concluded: “The rise in state pension to 66 by 2026 is now underway and, coupled with the panned rise to 67 by 2028, these changes are likely to have a major effect on our labour market.
“We can expect to see the growth in the number of older workers make up a large part of the rise in overall employment for the next decade.”
NEW BUILD IN FOCUS - NEW EPISODE OF THE MORTGAGE INSIDER PODCAST, OUT NOW
Figures from the National House-Building Council saw Q1 2025 register a 36% increase in new homes built across the UK compared with the same period last year, representing a striking development for the first-time buyer market. But with the higher cost of building, ongoing planning challenges and new and changing regulations, how sustainable is this growth? And what does it mean for brokers?
The role of the bridging market and technology usage in the industry
Content editor, Dan McGrath, sat down with chief operating officer at Black & White Bridging, Damien Druce, and head of development finance at Empire Global Finance, Pete Williams, to explore the role of the bridging sector, the role of AI across the industry and how the property market has fared in the Labour Government’s first year in office.
Does the North-South divide still exist in the UK housing market?
What do the most expensive parts of the country reveal about shifting demand? And why is the Manchester housing market now outperforming many southern counterparts?
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance, to explore how regional trends are redefining the UK housing, mortgage and buy-to-let markets.
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance, to explore how regional trends are redefining the UK housing, mortgage and buy-to-let markets.
The new episode of The Mortgage Insider podcast, out now
Regional housing markets now matter more than ever. While London and the Southeast still tend to dominate the headlines from a house price and affordability perspective, much of the growth in rental yields and buyer demand is coming from other parts of the UK.
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance.
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance.
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