Published On: Mon, Jun 10th, 2024

State pension in the UK compared with European rivals – see where you get most | Personal Finance | Finance

State pension in the UK compared with European rivals – see where you get most | Personal Finance | Finance
State pension in the UK compared with European rivals – see where you get most | Personal Finance | Finance


The UK state pension lags behind many European countries in how generous payments are relative to living costs.

Figures from Almond Financial compared state pensions across the continent, looking at how much pensioners get compared to their living costs, to calculate which nations are the most generous.

UK state pensioners on the full new state pension get £958.53 a month, which is almost £150 above average living costs, at £810.40.

But the UK ranked 16th, falling well behind Spain and France. Spain pays its pensioners £2,709.37 a month with living costs at £599.40, meaning the state pension is four times the cost of living.

The news comes after an analyst recently suggested the triple lock metric could be changed by switching to a model similar to Denmark.

French pensioners get £1,564.18 a monthm almost £600 more than Britons, with their living costs at £812.50 a month.

The most generous country is Luxembourg, where pensioners are paid £5,201.88 a month, more than six times monthly living costs, at £816.20.

The least generous European country is Armenia, where pensioners get just £74.20, while the cost of living is £505.80.

Sam Robinson, principal financial adviser at Almond Financial, said: “For those approaching state pension age in Spain, retirement is a particularly enticing prospect with a healthy pension, low cost of living and not to mention the fantastic weather.

“Closer to home, 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 works out at just £33 more per month compared to last year’s pension. 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.”

State pension payments increased 8.5 percent in April in line with the triple lock, with the full new state pension now paying £221.20 a week.

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