Public pensions remain the primary source of income for Europeans aged 65 and over, but the extent of this reliance and the role of other income streams vary significantly across the continent, according to new data from the Organisation for Economic Co-operation and Development (OECD).
In 2022, older people in 28 European countries had lower average disposable incomes than the general population. Only Luxembourg bucked the trend. The data also revealed that public payouts—mainly state pensions and social benefits—made up an average of 66% of elderly income across 27 countries in 2020 or the most recent year available.
The share of income from public transfers ranged widely, from just 41% in Switzerland to 86% in Belgium. Other countries where state support accounted for at least three-quarters of senior citizens’ income included Luxembourg (83%), Austria (82%), Finland (80%), and Italy and Czechia (both 76%).
In contrast, public support made up less than half of elderly income in the UK (42%), the Netherlands (43%), and Denmark (45%)—countries where alternative income sources such as occupational pensions or savings play a more significant role.
Among Europe’s five largest economies, France stood out with 78% of seniors’ income coming from public sources, while the UK had the lowest at 42%. Italy (76%), Spain (72%), and Germany (68%) followed closely behind France.
Work continues to be a key income source for many older Europeans, particularly in Eastern and Southern Europe. Employment income accounted for more than one-third of income for seniors in Latvia (40%), Slovakia (36%), and Lithuania (35%). In contrast, the figure was just 7% in France and remained below 11% in Belgium, Finland, and Luxembourg.
Capital income—including personal pensions and savings—also showed regional differences. While it contributed just 1% or less in countries like Slovakia, it accounted for 23% of elderly income in Denmark and 16% in Turkey and Switzerland. France (15%), Sweden (12%), and the UK (11%) also saw double-digit shares from capital sources.
Private occupational pensions remain a niche source, reported in only seven countries. The Netherlands leads the way, with such pensions making up 40% of elderly income, followed by the UK (33%) and Switzerland (29%). Sweden (19%), Denmark (15%), Norway (14%), and Germany (5%) also report notable contributions.
The data highlights deep differences in how European countries structure retirement income, revealing a patchwork of pension systems. Western European nations rely heavily on public pensions, while Nordic countries tend to diversify with stronger private systems. Meanwhile, older people in parts of Eastern and Southern Europe continue working to supplement limited state support.
As populations age and life expectancies rise, the disparities in income sources underscore a pressing challenge for European governments: ensuring financial security for pensioners while maintaining the long-term sustainability of public finances.
