Some recent research published by Prudential has revealed just how important the State Pension remains for many of us – making the current debate around future provision even more relevant. By Tony Watts OBE

How much does the State Pension matter to you? Perhaps you’re one of those who represent the “average retiree” in the UK, for whom the State Pension comprises just 35% of their income. Or you may be one of those for whom the State Pension is their only lifeline: some one in seven people retiring in 2016 have no personal pension savings at all and will be either completely or heavily reliant on the State Pension.

The picture is even bleaker for women: those retiring during the course of this year will be three times as likely as men to have made no personal pension provision, with 22% women relying on the State compared with 7% of men. In other terms they are also struggling to make ends meet: women will receive 41% of their retirement income from the State, compared with 31% for men.

And when you take into account the fact that the new Flat Rate pension is just £155.65 a week, it’s plain to see that a large cohort of people are going into their retirement years on a very low income indeed. The Joseph Rowntree Foundation calculates that just to rub along, a pensioner will need £182.98 a week. Worse still, only one in seven of this year’s retirees will actually qualify for the £155.65 because they will not have the required number of years’ contributions.

So what to take away from all this gloomy news? And how can you improve what you will get out of the State in years to come – especially if you expect that some of you sources of income may reduce in the future?

Firstly, it’s plain that a great many people entering into their official retirement years will not be giving up work because they won’t be able to afford to. We know that ever growing numbers of people in their 60s and beyond are staying in the workforce, albeit many in part time roles or going down the self-employed route. That trend is set to continue. The positive news is that delaying taking the State Pension by even a year or two can actually add significantly to what you will receive throughout your retirement.

Secondly, for those heading towards retirement and who won’t notch up a full 35 years of contributions, you might consider checking out the cost of doing so – each year’s extra contribution will add a few extra pounds to your weekly income, and this too will last your lifetime.

And, finally, for those with time to remedy the situation, remember that the State Pension was only ever intended as a safety net, even when the first one was paid in January 1909. Then it was paid to around 500,000 people aged 70 or more whose annual income was £21 a year or less. The most you could get was five shillings a week for an individual, seven shillings and sixpence for a married man…

Not much then, but not big money today either. For all the years in the 80s and beyond when the “link” with average earnings was severed, the State Pension fell further and further behind the rest of the nation in spending power.

So for anyone coming up towards retirement, do check what to expect from your State Pension (there is a very helpful area and helpline on gov.uk) and – if you are in any position to make yourself less dependent upon the State Pension – take that opportunity. There has been much talk in the press recently about what a good deal today’s pensioners get in comparison with the younger generation. But tell that to someone trying to get by on less than £8,000 a year…

To check what difference changes to your State Pension might make to YOUR future annual income, make use of the free RetireEasy LifePlan on www.retireeasy.co.uk.