Pensions in Europe: Best and Worst Countries for Retirement
Pensions in Europe vary significantly, with Luxembourg offering the highest average monthly pension at two thousand five hundred seventy-five euros, while Bulgaria provides the lowest at two hundred twenty-six euros. Financial confidence in retirement correlates with pension levels, with Luxembourg, the Netherlands, and Denmark reporting the highest confidence. The European Parliament highlights the risk of increasing old-age poverty due to current pension system designs.
There are substantial pension disparities across Europe.
A strong correlation exists between financial confidence in retirement and the level of monthly pensions.
Earnings-related pensions are the primary income source for Europeans aged 65 and older, but less than half of EU consumers are confident about their financial comfort in retirement.
Old-age pensions, aimed at maintaining or supporting income after retirement, vary widely.
In 2021, average gross monthly pensions ranged from €2,575 in Luxembourg to €226 in Bulgaria, with the EU average at €1,224.
Including EFTA and EU candidate countries, Iceland had the highest average at €2,762, while Albania had the lowest at €131.
The 'Big Four' EU countries and Nordic nations reported pensions above the EU average.
Conversely, Balkan countries recorded the lowest pensions, with Luxembourg's pensions nearly 11 times higher than Bulgaria's.
When adjusted for purchasing power standards (PPS), disparities decrease, yet Luxembourg still leads with a PPS of 1,681 compared to Bulgaria's 437.
Confidence in retirement comfort is highest in Luxembourg, the Netherlands, and Denmark, while lowest in Latvia, Slovenia, and Poland.
The European Parliament warns that current pension systems risk increasing old-age poverty, emphasizing the need for sustainable and adequate reforms.
A strong correlation exists between financial confidence in retirement and the level of monthly pensions.
Earnings-related pensions are the primary income source for Europeans aged 65 and older, but less than half of EU consumers are confident about their financial comfort in retirement.
Old-age pensions, aimed at maintaining or supporting income after retirement, vary widely.
In 2021, average gross monthly pensions ranged from €2,575 in Luxembourg to €226 in Bulgaria, with the EU average at €1,224.
Including EFTA and EU candidate countries, Iceland had the highest average at €2,762, while Albania had the lowest at €131.
The 'Big Four' EU countries and Nordic nations reported pensions above the EU average.
Conversely, Balkan countries recorded the lowest pensions, with Luxembourg's pensions nearly 11 times higher than Bulgaria's.
When adjusted for purchasing power standards (PPS), disparities decrease, yet Luxembourg still leads with a PPS of 1,681 compared to Bulgaria's 437.
Confidence in retirement comfort is highest in Luxembourg, the Netherlands, and Denmark, while lowest in Latvia, Slovenia, and Poland.
The European Parliament warns that current pension systems risk increasing old-age poverty, emphasizing the need for sustainable and adequate reforms.
