The wealth gap among elderly Europeans is enormous: the median net wealth of households aged 65–74 in Luxembourg is €1.22 million compared to just €36,300 in Latvia. This data shows how housing, pensions, and family assistance shape financial security in old age.
The financial situation of retirees in Europe varies significantly and affects the standard of living much more than just the size of pension payments.
In some countries, households of elderly people possess wealth that is more than 30 times greater than that of their peers in others, clearly demonstrating the importance of housing, pension systems, and family support for financial security in old age.
So, in which countries do the wealthiest retirees live?
The European Central Bank's Household Finance and Consumption Survey (HFCS), published in mid-2023, provides comparable data on the wealth of elderly Europeans.
In the euro area, households aged 65-74 have a median net wealth of €185,300. Across 22 European countries, this figure ranges from €36,300 in Latvia to €1,219,500 in Luxembourg.
Luxembourg stands out significantly: the next highest country, Malta, shows €310,000.
Belgium and Ireland Lead, France and Germany Follow
Excluding these two least populated EU countries, the wealthiest elderly households are in Belgium and Ireland. The median net wealth of households aged 65-74 in Belgium is €307,700. Ireland is also close to the €300,000 mark at €296,700.
France ranks fifth with a figure of €232,800, just slightly ahead of Germany at €232,100. In Spain, the median net wealth in this age group is €200,800.
Among the four largest economies in the EU, Italy has the lowest figure at €168,000. This means that retirees in France and Germany own, on average, more than €60,000 greater wealth than their peers in Italy.
Austria (€188,500) is slightly above the euro area average, while Finland (€176,100) is slightly below.
The Netherlands - Among Countries Below Average
The Netherlands (€134,400) stands out as a country where elderly households have relatively modest wealth, despite its highly regarded pension system, highlighting that even generous pension payments do not always translate into a high level of private capital.
Meanwhile, Slovenia (€138,200), Greece (€104,300), the Czech Republic (€102,900), and Slovakia (€100,800) also significantly lag behind the average level.
Completing the ranking, in addition to Latvia, are five other countries where the median net wealth of households aged 65-74 is less than €100,000: Lithuania (€51,400), Hungary (€54,400), Estonia (€73,500), Croatia (€75,900), and Portugal (€99,200).
In the euro area, the median net wealth of households aged 75 and older is €144,400, which is €40,900, or 22%, less than that of the 65-74 age group.
In almost all surveyed countries, the median wealth of households aged 75+ is lower than that of those aged 65-74. The only exceptions are Luxembourg and Belgium.
In Austria, the figure for the older group is 51% lower, in Germany it is 44%. In France, the gap is only 14%.
Factors Behind Cross-Country Differences
The HFCS department in a previous report reminded that differences in income, household composition, homeownership levels, the share of borrowed funds when purchasing real estate, and housing prices are among the key factors explaining the variation in net wealth between countries.
Personal Saving Habits and Long-Term Interaction of Factors
"These cross-country differences remind us that wealth is never just the result of individual saving tendencies," noted Professor Fabian Pfeffer from Ludwig Maximilian University of Munich and founder and director of the Munich Center for the Study of Inequality, Stone.
"They reflect the long-term interaction of housing markets, social security systems, pension schemes, credit institutions, family transfers, and historical pathways to asset ownership," he added.
The Role of Homeownership
According to him, these figures show how differently European societies have structured mechanisms for accumulating private capital. For many households, housing is the main asset.
"Where elderly households had broad access to homeownership and benefited from rising property values, the median net wealth tends to look significantly higher. Conversely, where renting is more common, the amount of private capital may be lower, even if elderly people are protected by other measures," he explained.
Fabian Pfeffer clarified that Germany and Austria, for instance, often appear less wealthy in household net wealth statistics precisely because of the higher share of renters.
"This does not automatically mean that elderly renters live in poverty. But it does mean that a smaller portion of their economic security is reflected in private capital on household balance sheets," he said.
State Pensions Not Included
Data on net wealth does not include the present value of rights to state or corporate pensions. Pfeffer emphasized that pension rights are one of the most important economic resources for many elderly people.
"A generous system of state pensions can reduce the need to accumulate large private assets by retirement. In this sense, lower private capital among elderly households may sometimes reflect not weaker, but stronger social protection," he noted.
Family Wealth Also Matters
Senior Research Fellow at the Intergenerational Foundation, Toby Welton, also emphasized that the role of family capital is becoming increasingly significant.
As access to housing and asset ownership is less and less secured by earnings, the importance of financial assistance from parents and grandparents is growing: it increasingly determines who can accumulate wealth at a younger age.
"This raises concerns regarding equality of opportunity, as economic outcomes increasingly depend on family background rather than personal effort," he said in a comment to Euronews Business.
What is Net Wealth?
Net wealth is the difference between a household's total assets and its total liabilities. Total assets include:
Real assets: the value of the primary residence for homeowners, other real estate, vehicles, valuables such as jewelry, artwork, and antiques, as well as the value of businesses owned by the self-employed.
Financial assets: bank deposits (current and savings accounts), mutual funds, bonds, stocks, debts owed to the household, the value of voluntary pension savings and life insurance policies of household members, as well as other financial assets.
Total liabilities include mortgage loans secured by the home in which the household resides and other real estate owned, as well as non-mortgage loans (including consumer, private, and other loans, overdrafts, and credit card debts).
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