The UK state pension ranks 13th out of 28 European countries, with retirees receiving around £220 more than the average cost of living, according to research by Almond Financial.
UK state pension position
The ranking weighs the average cost of living in each country against its full state pension amount. When these are equal, it is considered the 'breakeven' point. The UK and Czechia are barely above this, at 13th and 14th respectively.
The calculations assume pensioners are not paying for mortgage or rent. The triple lock mechanism has given the UK state pension annual increases that other countries have not kept up with, allowing the UK to leap ahead in recent years.
Top performers
Luxembourg topped the list, with pensioners receiving around £5,700 compared to a £931 cost of living. However, the exact amount each retiree gets depends on how many years they worked and paid contributions.
Norway was second, with a monthly state pension of £2,100 and living costs around £1,050. Spain came third, with nearly £720 spare from state pension payments after covering the cost of living, followed closely by Malta.
Bottom of the list
Sweden, Denmark, Belgium, France and the Netherlands make up the rest of the top 10. Poland and Ireland also appear before the UK, all with around £200-£300 spare for retirees each month.
Armenia came in last with a monthly state pension of £118.98 but monthly living costs of £518.10, putting retirees in the red. This is the fourth consecutive year Armenia has ranked last. Moldova was in 27th place with a state pension of £204.42 and living costs at £462.70. These are the only two countries where state pension payments are less than half of the monthly cost of living.
Expert comment
Principal Financial Adviser at Almond Financial, Sam Robinson, said: "The data is an interesting insight into just how well people can live when they retire right across Europe."
He added: "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."
Robinson noted: "This year's increase to the UK state pension has offered a boost to the 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."
