Reliance on State Pension at highest level since 1995

This is an increase of 14% in 2016/17 and the figure has seen a consistent increase over the past decade. Payments now average £229 a week (£11,900 a year), accounting for more than two-fifths (43%) of pensioner income.

The research also found that single pensioners are the most dependent on the State with a quarter having no personal savings or investments, the highest proportion ever recorded.

Chris Connelly, propositions and solutions director at Equiniti’s pension business, said: “These figures underline how important it is that people continue to learn about the importance of a later life income. It is worrying that one in five UK pensioners seems to be entering retirement with no personal savings or investments leaving them to rely solely on the income the State is able to provide.

“Auto-enrolment has gone a long way to improving behavioural trends in pension saving, however for the cohort closest to retirement it remains a concern that they will not have any funds of their own.

“In the short term, the introduction of the Dashboard may help some recent retirees discover other benefits they may have lost touch with. It is important we make sure they receive everything they are entitled to. For later generations coming through, Dashboards will also help them understand the likely income they may receive in retirement and give them time to do something about improving it.

“Improving financial education will be the long-term answer to ensuring those starting out in their careers consider putting money away for later life as the norm. Otherwise state benefits, for however long they last, will continue to provide a significant chunk of retirees’ income and continue to be one of the biggest challenges for the public purse.”