A retirement specialist has warned State Pension is set to run out for millions of people this week.
Figures from Just Group show State Pension Shortfall day arrived on Monday - as Wales Online reports.
This marks the point in the year when the average retired pensioner will have spent the equivalent of their annual State Pension.
READ MORE: DWP update on benefits error that may have affected 85,000 claimants
Official figures show the average annual spending for a single pensioner is £13,842 - and the full State Pension amounts to an income of around £9,340, which represents a shortfall of £4,502.
The retirement group warn that without additional sources of income, such as private pension provision, this group would have run out of income by Friday September 3.
Speculation has been rife that the government may abandon the State Pension triple lock, the promise to raise the State Pension by the highest of three measures – the rise in Consumer Price Index (CPI), the rise in average earnings or 2.5%.
However, analysis by Just Group reveals that even if the triple lock was implemented at 8%, pensioners would still face a shortfall of more than £3,500 every year in order for them to reach the average yearly spending in retirement.
Stephen Lowe, Just Group communications director, said: "If the average pensioner couple was given two State Pensions in full on 1 January, by August 31 they would have spent the entire amount and be reliant on other sources of income.
"Single pensioners would use up their income slightly slower and exhaust a full State Pension by the end of this week. The data reveals the shortcomings of the State Pension for those who rely on it as their main source of income."
“It’s a reminder that putting off saving or opting out of a workplace pension scheme can leave people struggling for income in later life. Those thinking of accessing pensions cash before they retire will also want to consider what that might mean for their income in a few years’ or decades’ time."
Mr Lowe urged pensioners struggling with their finances to contact the government's free, independent service, Pension Wise, before tapping into their savings.
He said: "The government’s free, independent and impartial guidance service – Pension Wise – helps people approaching retirement to understand their options better.
"Before tapping into pension savings, we urge everyone who’s entitled to a free Pension Wise session to make use of it – it’s proven to improve people’s knowledge of their retirement options and equip them with greater confidence to make good decisions about their retirement finances."
“Retirees struggling for income should make sure they are claiming their full State Benefits entitlement as large amounts go unclaimed every year.
"Our research shows that homeowners are particularly susceptible to missing out on potential income: four in 10 eligible pensioner homeowners fail to claim any State Benefits and a further 20% miss out on their full entitlement, losing hundreds of pounds a year, on average (3).
“A good online source for further information is direct.gov.uk but Citizens Advice and other charities might also be worth contacting.”
Want to find out the latest news in your area? Enter your postcode on our In Your Area page here
