State pensioners across the UK face a stark warning as 15.3 million people are set to fall below minimum retirement standards. Anyone with less than £13,400 annually struggles to afford basic essentials like food, bills and housing.
A study by Scottish Widows and Frontier Economics reveals the scale of Britain's looming retirement poverty crisis. The £13,400 threshold represents what older people need for a basic single-person retirement according to the Pension and Lifetime Savings Association.
Worst-hit regions revealed
Northern Ireland and North East England face the most severe challenges, with 48 per cent of residents at risk of failing to meet basic retirement income requirements. This means nearly half of pensioners in these areas cannot afford fundamental living costs.
The South West follows closely at 46 per cent, while Wales and the West Midlands record rates of 44 per cent and 42 per cent respectively. Even London, despite higher average incomes, sees 41 per cent of residents at risk.
Geographic inequality crisis
Scotland performs better at 39 per cent, ahead of the East Midlands at 36 per cent. Yorkshire and the Humber alongside the South East both record 34 per cent of residents facing retirement poverty.
The East of England emerges as the best-performing region, yet still sees 32 per cent of people unable to meet basic retirement standards. This highlights how widespread the crisis has become across all areas.
Expert calls for urgent action
Susan Hope from Scottish Widows said: "The differences between people's pension prospects across the UK are stark and highlight the scale of the challenge to crack the pensions crisis."
She added: "Across towns, cities and rural communities, people are facing very different futures. The postcode divide needs to be urgently addressed."
Hope continued: "The everyday pressures on people's money doesn't make this an easy task, so we need to help them to feel empowered to make decisions about their future."
State pension falls short
According to the Express, the current full state pension pays £11,973 annually, creating a £1,400 gap from the basic retirement standard. Couples outside London need £21,600 annually for basic retirement requirements.
The Express also reports that comfortable retirement requires £31,700 for singles and £43,900 for couples, while fully comfortable retirement needs £43,900 and £60,600 respectively.
Sources used: "PA Media", "Birminghammail", "Express" Note: This article has been edited with the help of Artificial Intelligence.