As the cost of living for many Brits increases, many pensioners could be left £8,000 short of what they actually need to live. It is estimated that more than 12 million Brits are past the state pension age. The Joseph Rowntree Foundation think tank has revealed that a pensioner who lives alone would need a pre-tax income of £17,400 a year to get to the minimum standard of living. However, some earn far below that.

For those who retired after 2016, the full state pension comes to a total of £11,973 a year. Meanwhile, those who retired prior to 2016 receive the old state pension amount, which only comes to £9,175 a year. As around 1.5 million pensioners do not receive earnings-related top-up, which are known as Serps, old state pensioners could be left £8,225 short of the amount needed to achieve a basic standard of living, the think tank revealed.

This comes as an analysis by Pensions UK claims that 3 million pensioners will no longer be enough to cover their needs by the year 2040. The Triple Lock sees the government committing to increasing pension payments depending on inflation rates.

However, experts have warned that this might not be enough. By 2073, the cost of pensions in the UK could be £200 billion, according to The Office for Budget Responsibility (OBR).

According to Peter Matejic of the Joseph Rowntree Foundation, pensioners with “no personal pension income fall below the minimum income standard even if they are claiming pension credit and would have received a winter fuel payment in winter 2024.”

He revealed: “This shows the importance of having benefit levels set so anyone can afford the essentials, as well as enabling working-age adults to save for retirement.”

Meanwhile, Charlotte Kennedy, of wealth management firm Rathbones, said: “Even those receiving the full state pension face a sizeable income gap – and many older pensioners, who often miss out on higher payments and have fewer chances to boost their income, are being left behind.

“It’s a stark reminder of the need to tackle pension disparities and ensure everyone can retire with dignity.”