The single person pension shortfall in retirement: How to fill the gap
Being single may have plenty of benefits but it could leave you with a retirement shortfall. But even as a single person, there are things you can do to plug the gap before you stop working
Beyond a lack of cards, chocolates and flowers on Valentine’s Day, being single also has a downside in terms of your pension.
Single retirees need almost £230,000 more in their pension pot than couples to achieve even a ‘moderate’ standard of living in retirement, research by Standard Life suggests.
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In comparison, a couple would need £43,900 per year.
Mike Ambery, retirement savings director at Standard Life, said: “The benefits of being in a couple extend far beyond receiving a rose on Valentine’s Day.
“Whether single by choice or by circumstance, the financial reality is that retirement costs are very different for those living alone. Housing, household bills and everyday expenses rarely halve simply because someone is on their own, meaning single retirees typically need to save far more to fund the same lifestyle.
“It’s also important to remember that life doesn’t always turn out as expected. It’s worth those in a couple today ensuring they’re well prepared for retirement, including in scenarios where they may be managing their finances alone.”
The single pension premium
Standard Life has used Pensions UK’s Retirement Living Standards to highlight the financial disparity for single and coupled-up retirees.
At a moderate standard of living – which includes a car and one two-week foreign holiday a year – single retirees require an after-tax income of £31,700 a year, according to Pensions UK.
Assuming a full new state pension of £11,973 a year,, this leaves an annual income shortfall of £24,509.50 before tax.
To secure this income through an inflation‑linked annuity, Standard Life estimates that a retiree would need to have built up around £455,250 in retirement savings at current rates.
In contrast, pensioner couples need a combined after-tax income of £43,900 a year to achieve a moderate living standard. With two full state pensions assumed, this could be achieved with a joint pension pot of £456,500 at current rates – funding two annuities of costing £228,500 each – almost half the amount required by a single pensioner.
The gap is also evident even at the minimum standard of living, which covers basic needs and a one‑week UK holiday each year but no car.
Single retirees need an after‑tax income of £13,400 to meet this level, requiring an annuity paying £1,634.50 a year and savings of around £31,750 after taking the full state pension into account. Couples, however, need £21,600 a year to reach the same minimum standard, which would be covered by two full new state pensions.
The disparity widens at the comfortable level – which includes a more luxurious foreign holiday, regular home upgrades and a £1,500 annual clothing budget.
A single pensioner would need to accumulate around £736,500, compared with £846,000 for a couple, or £423,000 each, leaving a single retiree needing an additional £313,500 to achieve the same lifestyle.
How to plug your pension gaps
There is strength in numbers when it comes to planning your retirement. If you are married or have a partner, you can combine your savings and share the costs.
Beyond the romance and companionship, there are also tax benefits to being married.
That doesn’t mean you need a partner though to plug your pension gaps. A single person can still take control of their own finances.
One way is to increase your pension contributions, putting more money to work in the stock market to help grow your retirement portfolio.
Stephen Lowe, group communications director at retirement specialist Just Group, said: “Small pension funds tend to be seen as a problem that many people solve by withdrawing the money the first chance they can.
“For many people those small pension funds will make the difference between not quite having the spending power to reach the minimum retirement living standard or being able to surpass it and enjoy more treats.”
Another option is to work for longer. This means more years of contributing and also gives you the possibility of deferring your state pension.
Daniel Wiltshire, independent financial adviser at Wiltshire Wealth, said: “Retirees can choose to defer their state pension, which can increase the amount they receive when they eventually claim it.
“For every nine weeks they delay taking their pension, it increases by 1%, equating to around 5.8% per year. This uplift can help plug an income shortfall in later life, which may be beneficial for those who have no other retirement provision.”
It is also worth checking if you can increase your state pension entitlement by filling any gaps in your national insurance (NI) record.
Usually you can only fill gaps in NI contributions for the past six years, but under a special concession, the government has let people also claim back to between April 2006 and April 2018.
This ended in April 2025.
Gabriel McKeown, head of macroeconomics at Sad Rabbit Investments, said: "In the great pension race, every missing year is a hurdle, and with the cost of living crisis still present, many are rushing to plug NI gaps to secure a finish line of financial stability.
“Furthermore, from a purely financial standpoint, topping up contributions offers a compelling proposition, as with inflation and longevity risks on the rise, maximising a reliable, inflation-protected state pension can be a prudent hedge against future financial uncertainty.
“However, for those willing to explore beyond the state pension, private investments in a diversified portfolio can enable individuals to build a strategy that adapts to market conditions and may outperform the fixed returns provided by government pensions, offering a more flexible approach tailored to risk tolerance, time horizons and financial goals."
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