State Pension provides half of income for over-80s, report finds

UK retirees are relying heavily on the State Pension to maintain their standard of living, with it making up 50% of household income for those over 80, according to Quilter’s new Retirement Lifestyle Report.

The research, produced with the Centre for Economics and Business Research (Cebr), found average annual retiree spending stands at £22,140 – nearly £10,000 below the level Pensions UK recommends for an adequate retirement lifestyle.

Despite tight budgets, retirees are gifting an average of £2,498 per year to relatives, including £1,323 in gifts and £1,175 to support education.

This equates to a £16.1bn contribution to the wider UK economy.

The study, based on a survey of 5,001 UK retirees, highlighted regional and income disparities, with 42% of Welsh retirees reporting incomes below £30,000 compared with more than £58,000 in London.

Debt also remains a burden, with the average retiree spending £1,579 annually on repayments, though this declines with age.

Nearly one in five (18%) retirees expressed serious concern about maintaining their current standard of living, rising to 29% among under-65s with above-median incomes.

Holidays, groceries and housing were identified as the largest spending areas, with holidays averaging £2,137 a year and property maintenance nearly £2,000.