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.”