State Pension payments worth over £1,400 each month for older people living in these European countries

New research suggests that older people in Great Britain receiving the State Pension are being left behind when compared to the amount of financial support pensioners receive in other European countries. The study conducted by pension advisors Almond Financial found that British pensioners barely break even after paying for regular monthly outgoings, despite the cost of living crisis continuing to ease and a further drop in fuel bills.

Almond Financial looked at similar data in all of Europe’s 50 countries to establish which country offers the most to retirees in comparison to the country’s current cost of living data. It then analysed the average cost of general living expenses such as food shopping, the price of a meal at a restaurant and energy bills to discover an estimated cost of living per month, excluding rent.

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The UK moved up one place from the 2023 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 per cent above the breakeven point - the UK Government 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 during the current financial year and recent data stated the monthly cost of living for a single person (excluding rent) is £810.40.

It's important to be aware that the State Pension can be paid weekly, fortnightly or every four weeks in the UK.

The full New State Pension is worth £221.20 each week, or £884.80 every four-week pay period, while someone on the full Basic State Pension receives £169.50 per week, some £678 each pay period.

Topping the European Pension Breakeven Index is Luxembourg.

The Luxembourg pension system pays out an average of £5,201, the equivalent to a whopping £4,243.35 more than the UK State Pension. With a similar cost of living, at least for the meantime, pensioners in Luxembourg can enjoy a comfortable retirement.

Rounding out the rest of the top five countries paying pensioners more than £2,000 each month are Spain, Belgium, Bulgaria and Liechtenstein.

Top 10 European countries paying highest State Pension per month

A full breakdown of the monthly cost of living outgoings can be found on the Almond Financial website here.

Commenting on the latest figures, principal financial adviser at Almond Financial, Sam Robinson, said: “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 actually works out to be a real-terms pay cut for most pensioners in comparison to last year’s report which saw pensioners have approximately £115 surplus after essentials. 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.”

Five ways to maximise your retirement income

• Consider using pay rises to increase pension contributions and pay more into pension when loans and other commitments end

• Maximise employer contributions

• Ensure your investment approach is efficient and suitable to your financial situation

• Maximise tax relief available

• Avoid taking large lump sums of money from the pension when there isn’t a need - taking the first 25% of your pension will be tax-free cash although any future withdrawals will be taxable.

You can view the full report online here.