State Pension payments worth over £1,400 each month for older people living in these European countries
20.02.2024 - 07:19
/ dailyrecord.co.uk
Newly updated figures show that during the ongoing cost of living crisis, people in the UK claiming their State Pension entitlement only just break even despite a record-breaking increase to weekly payment rates in April. The research, conducted by pension advisors Almond Financial, looked at the State Pension in comparison to the average cost of living in the UK.
Almond Financial looked at similar data in European countries to establish which one 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.
The UK ranked just below the halfway point in the top 30 at number 16, squeezing over the breakeven point for pension income. At just 16.61 per cent above the breakeven point, the UK Government pays just £114.28 more in State Pension than the average cost of living for a pensioner.
Spain is the most cost-effective country to live in, providing pensioners with a monthly state-funded income of just over £2,287, which helps to pay for cost of living expenses averaging £561.
The Spanish pension system pays out a maximum of €2,617.53 (£2,287.24) per month, the equivalent to a whopping £1,484.92 more than the UK State Pension (£802.32 per month). Coupled with the country’s low cost of living, pensioners can expect a comfortable retirement in the sun.
Rounding out the rest of the top five is Belgium, Luxembourg, Bosnia and Herzegovina and Cyprus. However, the Pension Breakeven Index also provides insight into how much each country is paying pensioners who reach state retirement age.
Based on the