State pensions as a share of living costs vary widely across Europe, with Northern and Western European countries often providing enough to meet or exceed basic expenses, while many Eastern European and Balkan nations fall short, according to research by payroll and HR firm Moorepay. The study analyzed pensions across 39 European countries, including EU members, candidate nations, EFTA countries, and the UK, using data collected in late 2025.
The research shows that in 20 out of 39 countries, pensions do not fully cover living costs for a single person, excluding rent. Moorepay noted that including rent would likely increase the number of countries where pensions fall short. Across the region, pension coverage ranges from 22 percent of living costs in Georgia to 225 percent in Luxembourg.
Luxembourg offers the highest coverage, with an average state pension of €28,790 and a living cost of €12,791, leaving a surplus of nearly €16,000. Italy and Finland also report pensions more than double the basic cost of living at 210 percent and 208 percent, respectively. Spain (199%) and Denmark (189%) are close behind.
Several countries provide high but slightly lower coverage, with pensions ranging between 150 and 180 percent of living costs. These include Iceland (179%), Norway (178%), Germany (176%), Belgium (170%), Austria (165%), France (160%), the Netherlands (159%) and Sweden (158%).
Six countries fall between 100 and 150 percent, indicating pensions are sufficient to cover basic living costs but with limited surplus. Switzerland (131%), Ireland (126%), the UK (120%), Poland (112%), Czechia (108%) and Greece (103%) fall into this category. A further group covers over 80 percent of living costs, including Slovenia (95%), Slovakia (94%), Estonia (91%), Portugal (90%), Montenegro (89%), Lithuania (85%), Croatia (82%) and Hungary (81%).
The situation is most precarious in parts of Eastern Europe and the Balkans. Georgia tops the low end at 22 percent, followed by Albania and Ukraine at 29 percent, and Moldova at 42 percent. Other countries where pensions cover less than two-thirds of living costs include Bosnia and Herzegovina (53%), Cyprus (58%), North Macedonia (61%), Turkey (64%) and Latvia (65%).
Noel Whiteside, visiting professor at the University of Oxford, noted that some EU countries are poorer than others, requiring families to supplement pension income for elderly relatives. Data from the OECD shows that public transfers account for about two-thirds of income for people aged 65 and over in Europe. Private occupational pensions also play a role in some nations.
David Sinclair, chief executive of the International Longevity Centre UK, emphasized that the design of each country’s pension system is a key factor in determining pension levels. The study highlights a stark regional divide: Northern and Western European countries often provide sufficient pension income, Central Europe offers moderate coverage, and Eastern Europe and the Balkans frequently see pensions covering only part of basic living costs.
