According to analysis by Key Retirement Solutions an over-65 household will spend an average of £10,387 on necessities like food and fuel. A flat rate state pension of £7,700 per year would leave an average annual shortfall of £2,700.

The cost of living varies widely by region, with pensioners in Wales more than £3,100 better off than their counterparts in the South East of England. Even in the cheapest regions, however, a shortfall exists: Although average costs fall to £8,829 per year, the state pension alone is still not sufficient.

Dean Mirfin, group director at Key, said: “The basic cost of being a pensioner at more than £10,000 will come as a considerable shock to many, and those approaching retirement must be made aware of the real need to plan carefully, as the annual income does not cover much in the way of luxuries or leave scope for any emergencies.”

Pensioners in the South East spend the most per year, shelling out £11,945 on necessities alone, followed by London and the East of England. Yorkshire & Humberside and the West Midlands join Wales to round out the cheapest three regions.

Mirfin continued: “It is crucial that pensioners and those in the run-up to retirement focus on their retirement planning, as current basic state pension and even the new planned flat rate state pension will not cover the basic costs of being a pensioner in any region of the UK.”