How Does The UK State Pension Compare To The Rest Of Europe?

10th September 2024

A few politicians are now claiming on the Winter Heating allowance that UK pensioners have had big pension rises and that is why the Labour government can takeback the allowance. However UK pensions still trail far behind many European countries.

Luxembourg tops the European Pension Breakeven Index. The Luxembourg pension system pays out an average of €6,095.87 (£5,211.20) and thanks to the relatively low cost of living in comparison, pensioners can expect a comfortable retirement with a pension income at 538.47% over the breakeven point.

Spain came in second place, with the country's pension system paying out a maximum of €3,175.00 ( £2,714.23) per month and coupled with the country's low cost of living, pensioners can enjoy a comfortable retirement in the sun.

The UK moved up one place from last year's report in the top 30, now coming in at number 15, continuing to linger just above the breakeven point for pension income. At just 18.28% above the breakeven point, the UK pays just £148.13 more in state pension than the average cost of living for a pensioner.

The maximum UK state pension will pay a total of £958.53 per month to retirees from 2024 and at the time of writing, recent data stated that the monthly cost of living for a single person (excluding rent) is £810.40.

Read more at Almond Financial