What's the average State Pension -- and is it enough to live on?

NimbleFins calculates average State Pensions in the UK and analyses if the State Pension is enough to live on—including shortfalls for both single pensioners and pensioner couples.

• Average State Pension
• Is the State Pension enough to live on?

Average State Pension UK

Of those receiving a state pension, the average amount of state pension received is £175 per week for a single pensioner and £281 per week for a pensioner couple, as of 2022/23. When it comes to the State Pension, "typical" or median figures are quite close to the "average" or mean amounts, as you can see below.

If we multiply these figures by 52, we get annual numbers—so the typical State Pension is calculated to be around £9,100 per year for a single person and £15,400 per year for a couple.

How much is the full state pension?

The full rate for the new State Pension is £230.25 a week for 2025/26. That's equivalent to £11,973 per year (which is less than the current Personal Allowance of £12,570).

This implies that, on average, most people get around 75% of the full State Pension (not the full 100%).

To get the full State Pension, you will need 35 qualifying years on your National Insurance record. Those with fewer years get a reduced rate, and you need a minimum of 10 years on your National Insurance record to get any new State Pension at all. If you have between 10 and 34 years on your National Insurance record, your State Pension will be proportionate to the number of years you've logged.

Is the State Pension enough to live on?

No, the State Pension is generally not enough to live on. To understand why not, and how much the State Pension falls short, let's compare how the the median and full State Pension (that is, retirement income) compares to the Retirement Living Standards, or RLS (that is, retirement expenses).

The Retirement Living Standards (RLS) estimate how much money is needed for 'minimum', 'moderate' and 'comfortable' levels of retirement, and come from Loughborough University and the Pensions and Lifetime Savings Association.

As you can see above—for a couple—the full New State Pension (£23,946) is just barely enough to cover minimum RLS living expenses in retirement (£21,600). But when it comes to single pensioners, the full New State Pension (£11,973) is not enough to cover the minimum RLS (£13,400). And many people don't receive the full State Pension amount anyway.

The shortfall is even greater when we compare the minimum living expenses (minimum RLS) to the median (as in, typical) State Pension. In fact, there's a shortfall of over £4,000 per year for a single person and over £6,000 per year for a couple between the typical State Pension and the minimum living expenses during retirement. (Additionally, the RLS expenditure estimates assume you own your own home. Those renting or paying a mortgage will have an even larger shortfall between their State Pension income and their living expenses!).

Here are some rough calculations to show the shortfall between the typical State Pension and the three tiers of RLS estimates for retirement living expenses (which exclude rent or mortgage).

In other words, to have enough money for each RLS tier, the typical person would need alternative sources of income to meet the shortfalls above—whether achieved from private pensions or other earned income.

And they'd need even more money if they pay rent or a mortgage, as those costs are not included in the RLS living expenses estimates.

So, it's important to save up additional resources beyond the State Pension to fund your retirement. How much do most people end up saving for retirement, and how much retirement income do most people have? To find out, read our analysis on average retirement incomes in the UK, which reflects private pensions, etc. in addition to the State Pension.

Do most people receive the full State Pension?

Roughly half of people receive the full rate on their State Pension. And the rest of the people must receive close to the full rate, because the average amount received is just 5% less that the full rate (the average amount was £175 per week for 2022/23, which is 5% less than the full rate of £185 at the time).

For example, if half of people receive the full amount and the average is £10 less, then the other half of people would receive roughly £20 less per week than the full amount.

Do you pay tax on the state pension?

The state pension is liable to income tax—but some people may not owe tax on their state pension.

Why? You pay a 0% tax rate on annual income below your Personal Allowance. And the standard Personal Allowance is £12,570, which is higher than the average State Pension amount received. In other words, the average State Pension of £9,100 per year for a single person falls below the £12,570 Personal Allowance, so a typical person who earns only the State Pension would pay a 0% tax rate in the end on their State Pension.

Of course, if your State Pension is higher than your Personal Allowance or you have other sources of income that brings you over the Personal Allowance then you'll owe tax. For example, your total income could include:

Does everyone get a state pension?

No, not everyone gets a state pension. For example, those with less than 10 qualifying years on their National Insurance record won't get any new State Pension.

A qualifying year is one in which you were:

You might also qualify for the State Pension if you’ve lived or worked abroad or paid reduced rate National Insurance for married women.

Retirement Age UK

The State Pension age rise to 67 will take place as planned between 2026-2028.

This will be reviewed within two years of next Parliament to reconsider a further rise to age 68.

Note: you can keep working after the State Pension age (and still receive your State Pension, even if you are not actually 'retired' because you're still earning money through a job).