Those relying on the UK state pension could be at risk of being “left behind” in the cost-of-living crisis, according to research from Almond Financial, which found that, despite recent increases, many pensioners are “barely breaking even”.

The research looked at the current state pension in comparison to the average cost of living in the UK, analysing the average cost of expenses such as food shopping, the price of a meal at a restaurant and energy bills to discover an estimated cost of living, excluding rent.

According to this analysis, the UK state pension pays just £74.40 more than the average cost of living for a pensioner, even with recent increases in the state pension under the triple lock.

Almond Financial also warned that as the cost-of-living crisis rages on, monthly costs are expected to rise significantly over the coming months, leaving pensioners with "very little wiggle room".

The UK ranked 17th when compared with similar data from Europe’s 50 countries, down one place from last year’s report and just 9.18 per cent above the pension income breakeven point.

Topping the pension breakeven rankings was Luxembourg, paying out an average of EUR 6,095.87 per month, which is a "whopping" £4,327.47 more than the UK state pension.

Rounding out the rest of the top five was Spain, Belgium, Bulgaria and Liechtenstein.

Commenting on the findings, Almond Financial principal financial adviser, Sam Robinson, said: “The UK has a system that is just above the breakeven point which means at present, there isn’t much room to manoeuvre for those battling the cost of living crisis. And while it is positive that the UK finds itself among the top half of countries, for how much longer is the question.

“Although the increase in the state pension was well intended, it actually works out to be a real-terms pay cut for most pensioners in comparison to last year’s report which saw pensioners have approximately £115 surplus after essentials. It's clear that those over 66 need to look at other options rather than just relying on the state pension.

“Planning for life after work is crucial and it’s important to seek advice from a pension advisor if you aren’t sure where to start.”

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