Two state pensions are equivalent to about £ 18,680 a year, with official figures showing the average annual expenditure of a two-person retired household at £ 28,064, leaving a deficit of £ 9,384 for the year.
Retirees would therefore need to find a way to bridge the gap with the help of other sources of income, such as private pensions or other savings and investments, where many choose to work after retirement age to earn extra money.
Single pensioners who receive the full state pension receive just under £ 9,340 per year, but spend an average of £ 13,842 per year, which means that they also do not have enough state pension to live on. This shortfall of £ 4,502 means that they would have spent the equivalent of their annual state pension by 3 September.
Auto-registration is a good way that the British have easily been able to contribute to their pension pot, but doing so at the minimum contribution level is also not considered sufficient to build up sufficient pension savings.