State Pension Shortfall Day

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According to figures and analysis from Just Group,  Wednesday 28 August marked the day that the average retiree will have already spent the amount they would get annually from the state pension, with four months of the year still to go. This is assuming they receive their full weekly pension amount and spend in line with the average.

Full state pension for an adult is currently £8,767 a year, compared to average annual spending for a one-person retired household of £13,265.

State Pension Shortfall Day fell on Saturday 31 August for the average retired couple. The figures for couples or combined state pension income and average annual expenditure would be £17,534 and £26,244 respectively. The average deficit would, therefore, be £8,700 if they were to keep up their spending, leaving an annual gap of just under £4,500 between now and the end of the year.

This highlights the importance of planning and saving for retirement rather than relying on a state pension alone to cover your day to day expenses. And, if after years of hard work, you are looking forward to exotic holidays, more time for your favourite hobby or simply trying the finer things of life, you really need a substantial and sustainable fund behind you and to use it wisely during your retirement.

To help you make decisions about your future, BlackBear Financial Group offers an excellent planning solution: Cash Flow Modelling.

Cash Flow Modelling is the process we use to help clients plan for retirement, and when appropriate, navigate through pension income drawdown.

Our Cash Flow Modelling tools build a holistic view of your lifestyle, expenditure and sources of income in order to calculate how far your existing arrangements will go towards your financial objectives.

We can also simulate how your investments and pensions might perform in thousands of market conditions, giving you a representation of how sustainable your lifestyle could be in a diverse range of market environments and illustrating what would happen to your financial situation if the worst possible scenario were to happen.

Using cash flow modeling allows you to immediately ascertain the impact your decisions will have before finalising a strategy- a vital element in your financial planning.

So just as the iconic “Mind the gap” warning phrase urges rail passengers to take caution while crossing the spatial gap between the train door and the station platform, ensure that you can safely navigate the gap that may appear in your retirement  income and expenditure.

If you need help with your retirement income planning, call us today on

0151 305 2305 or email us at

Your investments may go down as well as up and you may not get back the amount invested.

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