The UK’s State Pension provision is often considered much less generous than other developed countries, but in fact British retirees don’t fare as badly as many pensioners living elsewhere.
This is due mainly to the triple lock being restored in April 2023, which means that the State Pension is guaranteed to rise by the highest of September’s inflation figure, earnings growth, or 2.5%. Last September’s inflation figure was 10.1%, so pensioners received a record-breaking 10.1% rise to their State Pension payments in April. You can find out more about this in our guide What is the pension triple lock?
That said, the age at which you can start claiming your State Pension is rising, and will increase to 67 between 2034 and 2036 and age 68 between 2044 and 2046.
Here, we look at how the UK’s State Pension system compares to state pensions in other countries, and whether it provides enough for retirees to live on during the current cost of living crisis.
If you’re thinking about getting professional financial advice, you can find a local financial adviser on VouchedFor or Unbiased.
Alternatively, if you’d like advice on your private pension, we’ve partnered with independent advice firm Fidelius to offer Rest Less members a free initial consultation with a qualified financial advisor. There’s no obligation, however if the adviser feels you’d benefit from paid financial advice, they’ll talk you through how that works and the charges involved.
Please note that Fidelius can discuss private pensions, but is not able to advise on the State Pension and defined benefit / final salary (e.g. NHS) pensions.
How much is the UK State Pension?
In the UK, the amount of State Pension you’ll get depends on how many years you’ve paid National Insurance (NI) for and when you reached State Pension age. There are currently two State Pension systems: one for people who reached State Pension age before April 6th 2016 and one for those who reached State Pension age on or after this date.
The weekly State Pension amount for the current 2023/24 tax year is:
- New State Pension: £203.85 in the current 2023/24 tax year. This is the maximum you’ll get if you have 35 years’ National Insurance and you haven’t been contracted out of NI during part or all of your working life. If you’re a man born on or after 6 April 1951, or if you’re a woman born on or after 6 April 1953 new State Pension rules will apply to you.
- Basic State Pension: £156.20. This is the most you’ll get if you have 30 years’ National Insurance Contributions and aren’t entitled to a State second Pension, such as a SERPS pension (learn more about these in our guide State Second Pension and SERPS explained). If you’re a man and were born before 6 April 1951, or if you’re a woman born before 6 April 1953, you’ll likely be claiming the basic State Pension already.
You can find out everything you need to know about the State Pension in our guide How the State Pension works.
When can you get your State Pension in the UK?
In the UK, the State Pension age is 66 for both men and women. For those born after 5 April 1960, there will be a phased rise in State Pension age to 67, and eventually 68. The current legislated pathway is for the State Pension age to rise to 67 between 2026 and 2028 and 68 between 2044 and 2046. There have been reports that the government is considering ministers bringing this increase forward to between 2037 and 2039, although no decision on this is expected until after the election.
Millions of women born in the 1950s experienced a sharp rise in their State Pension age between 2010 and 2020, from 60 to 66, causing many serious financial hardship. You can find out more about this in our article WASPI pension campaigners seek judicial review against Ombudsman.
If you’re not sure when you’ll receive your State Pension, you can use the government’s State Pension age calculator here.
What is happening to State Pension ages across the world?
The age at which you can claim your State Pension is creeping up gradually across the world due to rising life expectancy. Earlier this year the French president, Emmanuel Macron, pushed through his unpopular plan to raise the State Pension age in France from 62 to 64, prompting riots in protest at the changes.
A study by the OECD (Organisation for Economic Co-operation and Development) found the normal retirement age of men who entered the labour market in 2020 is set to increase in 20 out of 38 OECD countries. The highest increase is projected for Turkey, from 52 currently to 65 years.
The OECD research also found in 2020, the average normal retirement age across OECD countries for an individual with a full career and who entered the labour market at age 22 was equal to 63.4 years for women and 64.2 years for men. Turkey however, has much younger normal retirement ages of 49 and 52 for women and men, respectively. Other than Turkey, the lowest retirement ages elsewhere are 57 for women in Colombia and 62 for men in Colombia, Luxembourg and Slovenia. Iceland, Norway and Israel have the highest normal age of 67.
How the UK’s State Pension compares to other countries
The maximum UK State Pension pays a total of £802.32 per month to retirees. According to research carried out by pension advisors Almond Financial, the monthly cost of living for a single person (excluding rent) in the UK is calculated at £688.04 a month, leaving retirees with just £114.28 more in State Pension than the average cost of living each month.
Almond Financial looked at the pension systems in all of Europe’s 50 countries to find out which country offers the most to retirees in comparison to the country’s cost of living data. It used Numbeo data which analyses the average cost of general living expenses such as food shopping, restaurant meals, energy bills and so on, and gives an estimated cost of living each month, excluding rent. The data doesn’t factor in mortgages either as it assumes that the majority of pensioners have already paid off their mortgages.
The UK ranked around the halfway mark in the top 30 at number 16, just above the breakeven point for pension income.
However, the most generous pension system is in Spain, where pensioners receiving the maximum State Pension have an income of €2,617.53 per month (£2,287.24). Spain also has low living costs, so pensioners can expect a comfortable retirement with pension income at a whopping 407.40% over the breakeven point, according to Almond Financial.
Belgium came in second place, with the country’s pension system paying out a maximum of €3,100 per month for those who have worked for 45 years. Living costs are higher in Belgium, however, at around €822.17 (£720.45) a month, but generous pension provision means that retirees are still likely to feel reasonably well off.
Which countries in Europe offer the most to retirees in comparison to the country’s cost of living?
| Rank | Country | Pension paid out per month in £ | Cost of Living Monthly Costs in £ | % above/below the pension income breakeven point |
| 1 | Spain | £2,287.24 | £561.43 | 407.40% |
| 2 | Belgium | £2,709.93 | £720.45 | 376.14% |
| 3 | Luxembourg | £3,050.57 | £847.32 | 360.03% |
| 4 | Bosnia and Herzegovina | £979.72 | £411.20 | 238.26% |
| 5 | Cyprus | £1,485.81 | £646.93 | 229.67% |
| 6 | Liechtenstein | £2,061.02 | £1,027.36 | 200.61% |
| 7 | France | £1,497.73 | £751.31 | 199.35% |
| 8 | Denmark | £1,647.56 | £846.09 | 194.73% |
| 9 | Switzerland | £2,123.54 | £1,276.40 | 166.37% |
| 10 | Norway | £1,579.78 | £961.62 | 164.28% |
| 11 | Iceland | £1,524.20 | £929.55 | 163.97% |
| 12 | Ukraine | £482.65 | £314.26 | 153.58% |
| 13 | Bulgaria | £670.66 | £457.57 | 146.57% |
| 14 | Netherlands | £1,102.34 | £798.21 | 138.10% |
| 15 | Ireland | £962.08 | £765.87 | 125.62% |
| 16 | United Kingdom | £802.32 | £688.04 | 116.61% |
| BREAKEVEN | BREAKEVEN | BREAKEVEN | BREAKEVEN | |
| 17 | Sweden | £705.63 | £709.01 | 99.52% |
| 18 | Moldova | £357.54 | £392.25 | 91.15% |
| 19 | Finland | €703.45 | £732.70 | 83.78% |
| 20 | Belarus | £337.69 | £434.20 | 77.77% |
| 21 | Albania | £263.13 | £386.45 | 68.09% |
| 22 | Romania | £283.52 | £431.30 | 65.74% |
| 23 | Montenegro | £256.32 | £437.13 | 58.64% |
| 24 | Croatia | £312.68 | £541.01 | 57.80% |
| 25 | Greece | £335.65 | £600.14 | 55.93% |
| 26 | Russia | £216.07 | £581.13 | 37.18% |
| 27 | Lithuania | £173.90 | £552.59 | 31.47% |
| 28 | Czech Republic | £167.54 | £564.34 | 29.69% |
| 29 | Georgia | £82.34 | £477.03 | 17.26% |
| 30 | Armenia | £67.79 | £506.81 | 13.38% |
Source: Almond Financial
Sam Robinson, principal financial advisor 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.
“While the increase in State Pension in line with inflation is needed and welcomed, it’s clear that those over 66 need to look at other options rather than just relying on the State Pension.”
If you’re considering a move overseas, you can find out what this might mean for your retirement savings in our guide What happens to my pension if I move abroad?
If you’re thinking about getting professional financial advice, you can find a local financial adviser on VouchedFor or Unbiased, or for more information check out our guide on How to find the right financial adviser for you.
Alternatively, if you’d like advice on your private pension, we’ve partnered with independent advice firm Fidelius to offer Rest Less members a free initial consultation with a qualified financial advisor.
Fidelius are rated 4.7 out of 5 from over 1,250 reviews on VouchedFor, the review site for financial advisors. With your free consultation, there’s no obligation, however if the adviser feels you’d benefit from paid financial advice, they’ll talk you through how that works and the charges involved.
Please note that Fidelius can discuss private pensions, but is not able to advise on the State Pension and defined benefit / final salary (e.g. NHS) pensions.
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