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The UK’s State Pension provision is generally considered much less generous than other developed countries, with a recent report estimating that around 14.5% of people aged 66 and over in the UK are living in relative income poverty.
According to the Organisation for Economic Co-operation and Development (OECD), which carried out the research, this was the 14th highest rate of income poverty among 34 OECD countries for which data was available for between 2019-2022. The highest rate was in Estonia (43.4%), followed by Korea (39.7%). Rates were lowest in Denmark (4.1%) and Norway (4.3%).
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 relative to the cost of living.
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If you’re considering seeking professional financial advice on the options available to you, we’ve partnered with nationwide Chartered independent advice firm Fidelius to offer Rest Less members a free initial consultation with a qualified financial adviser. 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.
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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 reach 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 2025/26 tax year is:
- New State Pension: £230.25 in the current 2025/26 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 retire after April 6 2026, new State Pension rules will apply to you.
- Basic State Pension: £176.45. 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 retired before April 6 2026, you’ll likely be claiming the basic State Pension already.
The State Pension is guaranteed to rise by the highest of September’s inflation figures, earnings growth, or 2.5%. You can find out more about this in our guide What is the pension triple lock?
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.
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 hardships. You can find out more about their campaign for compensation in our article Women hit by State Pension age changes denied compensation.
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 research also found that 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 UK spends a smaller percentage of its gross domestic product on State Pensions and pensioner benefits than most other advanced economies.
According to the OECD, average-earning workers will typically receive a State Pension equivalent to 54.4% of their wages. This is well below the OECD average for other countries, which is 61.4%.
Around 50% of pensioner income (excluding earnings) in the UK is from state pensions and benefits, while over a third comes from occupational pensions and 11% is from personal savings.
The maximum UK State Pension pays a total of £997.75 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 £820.90 a month, leaving retirees with just £176.85 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 23 at number 11, just above the breakeven point for pension income.
However, the most generous pension system is in Luxembourg, paying out an average of €6,488.83 (£5,403.22) a month. Thanks to the relatively low cost of living there, pensioners can expect a comfortable retirement with pension income at 594.8% over the breakeven point.
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 | Luxembourg | £5,426.93 | £912.40 | 594.80% |
| 2 | Spain | £1,238.93 | £602.40 | 205.67% |
| 3 | Norway | £1,839.23 | £970.50 | 189.51% |
| 4 | Sweden | £1,373.89 | £790.60 | 173.78% |
| 5 | Belgium | £1,338.16 | £799.70 | 167.33% |
| 6 | Denmark | £1,486.66 | £914.90 | 162.49% |
| 7 | France | £1,254.53 | £798.80 | 157.05% |
| 8 | Netherlands | £1,322.20 | £850.90 | 155.39% |
| 9 | Switzerland | £1,657.48 | £1,278.80 | 129.61% |
| 10 | Ireland | £1,047.95 | £847 | 123.72% |
| 11 | UK | £997.75 | £820.90 | 121.54% |
| 12 | Czech Republic | £689.67 | £641.50 | 107.51% |
| 13 | BREAKEVEN | |||
| 14 | Romania | £463.91 | £513.10 | 90.14% |
| 15 | Finland | £655.20 | £789.60 | 82.98% |
| 16 | Lithuania | £505.99 | £638 | 79.31% |
| 17 | Bulgaria | £398.20 | £512.40 | 77.71% |
| 18 | Croatia | £410.65 | £633 | 64.87% |
| 19 | Cyprus | £428.63 | £738.50 | 58.04% |
| 20 | Greece | £321.16 | £667 | 48.15% |
| 21 | Moldova | £188.74 | £461 | 40.94% |
| 22 | Georgia | £111.62 | £435 | 25.66% |
| 23 | Armenia | £99.26 | £584.20 | 16.99% |
Source: Almond Financial
Sam Robinson, principal financial advisor at Almond Financial, said: “The data is an interesting insight into just how well people can live when they retire right across Europe.
“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.
“This year’s increase to the UK state pension has had a meaningful impact on pension income versus the cost of living, meaning pensions could feel slightly better off. Despite this, the UK state pension still rests just above the breakeven point, and remains weak compared to other pension systems across Europe.”
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?
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If you’re considering seeking professional financial advice on the options available to you, we’ve partnered with nationwide Chartered independent advice firm Fidelius to offer Rest Less members a free initial consultation with a qualified financial adviser. 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.
Fidelius are rated 4.7 out of 5 from over 2,600 reviews on VouchedFor, the review site for financial advisers.
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