It would cost £336,500 for someone at state pension age to buy the full state pension of £175.20 per week for the rest of their life through an annuity, according to analysis by Aegon.

The pension provider said this highlighted “just how valuable the state pension is” even with the upcoming increase in qualifying age to 66 from 6 October 2020.

The state pension is expected to increase further to 67 in 2028 and to 68 from 2037, according to a government timetable.

Aegon also stated that figures from the Department for Work and Pensions' Income Series show that benefit income, which includes the state pension, makes up 43 per cent of the average weekly pensioner income, further demonstrating its importance.

Aegon pensions director, Steven Cameron, commented: “Recent increases in the qualifying age have aimed to make the state pension more affordable as we live longer, but those about to claim their state pension may be surprised at just how much it’s worth.”

He added that the cost of the value of the full state pension “may seem huge” based on Aegon’s analysis, but added that relying on the state pension alone would not provide the lifestyle that most people “aspire to in retirement”.

Cameron concluded: “This is why it’s vital to plan ahead for the retirement you want by making additional personal provision, for example by saving through a workplace or personal pension. And the sooner people start on that journey the longer their contributions have to grow with investment returns.

“Private provision also offers more flexibility and could allow for a more gradual transition to retirement rather than having to keep working till a state pension age which could rise to 68 in the future. To plan ahead for the retirement you aspire to, it can pay to seek professional advice.”

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