The share of state pensions in the minimum living cost in Europe varies significantly. In Northern and Western Europe, pensions often meet or exceed basic expenses, while in Eastern Europe and the Balkans, retirees often struggle to make ends meet.
Are state pensions sufficient to ensure a minimum standard of living in Europe?
In 20 out of 39 European countries, the answer is no, according to a study by Moorepay, a company specializing in payroll and human resource management. The cost of living does not include rent. If rent were included, this figure would likely increase significantly.
So, what portion of living expenses do state pensions cover, excluding rent, as of the end of 2025?
In 39 European countries, including EU members, candidate countries, EFTA countries (Iceland, Norway, Switzerland, and Liechtenstein), and the United Kingdom, the share of pensions relative to the cost of living ranges from 22% in Georgia to 225% in Luxembourg.
This reflects the ratio of the cost of living for one person to one pension at the end of October 2025.
Moorepay collected data on average pensions, while the cost of living data was obtained from Numbeo and represents a national average. The situation may vary by city.
For example, in Luxembourg, the average state pension is €28,790, while the minimum living cost is €12,791. This means that the state pension is more than double the minimum living cost.
Pensions also exceed the minimum living cost by more than double in Italy (210%) and Finland (208%). Spain (199%) and Denmark (189%) are close to this level as well.
In several other countries, the share of pensions in the cost of living ranges between 150% and 180%, which is still a relatively high figure.
These include Iceland (179%), Norway (178%), Germany (176%), Belgium (170%), Austria (165%), France (160%), the Netherlands (159%), and Sweden (158%).
Six countries fall within the range of 100% to 150%. There, state pensions are still sufficient to cover the living expenses of a single person, excluding rent, but the surplus is limited.
These are Switzerland (131%), Ireland (126%), the United Kingdom (120%), Poland (112%), the Czech Republic (108%), and Greece (103%).
In 20 countries, pensions are insufficient.
In some cases, they cover more than 80% of living expenses. Such countries include Slovenia (95%), Slovakia (94%), Estonia (91%), Portugal (90%), Montenegro (89%), Lithuania (85%), Croatia (82%), and Hungary (81%).
However, in many countries, the situation is not very good, with some cases dropping below 65%.
Albania (29%), Ukraine (29%), and Moldova (42%) follow Georgia (22%), which is at the bottom of the ranking. In all these countries, pensions are insufficient to cover even half of living expenses.
The share of pensions in the cost of living is 53% in Bosnia and Herzegovina, 58% in Cyprus, 61% in North Macedonia, 64% in Turkey, and 65% in Latvia.
Noel Whiteside, a visiting professor at the University of Oxford, stated that some EU countries are simply poorer than others, forcing families to subsidize the pension incomes of elderly relatives and assist them.
Regional Divide: Northern/Western and Eastern Europe
There are clear geographical trends.
In Northern and Western Europe, including the Scandinavian countries, pensions often cover or exceed basic living expenses.
In Central Europe, pensions provide moderate coverage. In Eastern Europe and the Balkans, pensions usually cover only part of these expenses.
Leave a comment