One in seven retirees this year will do so without any pension, according to research by Prudential. Almost one in five will be below the poverty line.

The insurer’s annual study, based on interviews with 8,676 over 45-year-olds and another 1,007 people retiring this year, found 14% of retirees with only the state pension as their retirement income. On average, the state will account for little over a third (36 per cent) of average retirement incomes. Meanwhile, 18% will retire with incomes of under £8,254 a year – the figure Joseph Rowntree Foundation defines as the poverty line for a single pensioner in the UK.

“Against a backdrop of rising living costs, the basic State Pension alone is not nearly enough to provide a comfortable standard of living,” Prudential retirement income expert Vince Smith-Hughes said.

“Relying on the State will see many people retiring below the poverty line this year, which shows the importance of building up a personal pension.”

The research reveals significant variations among the population. Women, for example, are much more likely (21%) to retire below the poverty line than men (14%). They are also nearly three times more likely than men to have no other pension – 23% against eight per cent for men.

Regionally, reliance on the state pension is highest in the East Midlands (21% with no other pension) but lowest in the West Midlands (10%), equal with Scotland and similar to levels in London (11%). However, Wales, with a quarter of its retirees, has the highest proportion retiring with incomes below the poverty line, against just 14% in London.

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