ILC: UK has one of the least generous state pensions in Europe
UK pensioners at a greater risk of poverty in retirement than those in Germany, France, Spain and Romania.
The UK has one of the least generous state pensions in Europe, according to a new report from the International Longevity Centre (ILC).
The think tank looked at how much of the typical pre-retirement income the state pension replaces, and found the UK is falling well behind its EU counterparts.
How the UK compares
Figures obtained from the Organisation for Economic Co-operation and Development (OECD) in 2012 show pensioners in Greece were the best off, receiving almost 100% of their previous income from the state upon retirement.
But in the UK the average earner only received a third of the value of their pre-retirement income from the government when they came to retire.
UK pensioners were found to be at a greater risk of poverty in retirement than 19 other EU countries including Germany, France, Spain and Romania.
Only Latvia, the Netherlands, Ireland, Denmark, Poland and Estonia offered its citizens a worse deal than the UK.
Pensioners in Estonia were in the worst position, with the average earner receiving just a quarter of their pre-retirement income from the state.
On average, across all 26 EU countries, pensioners receive around 50% of their pre-retirement income, though the report points out that many retirees are also supported by private pensions and social security benefits.
Europe’s Ageing Demography
The findings released today form part of a wider look at how the UK compares to other EU countries when it comes to coping with a growing ageing population.
The number of over 65s in Europe is projected to almost double by 2060. The ILC says this has profound implications for individuals, governments and businesses.
The think tank, in conjunction with specialist insurer Partnership, has put the UK in context through a series of statistical comparison presented in a fact pack called Europe’s Ageing Demography.
In more positive news the UK has the lowest proportion of over-65s living in cold housing during winter out of the the whole of the EU.
But the UK has one of the highest levels of expenditure on social protection for old age in Europe. It spends the equivalent of £2,860 per person on social protection in old age compared to an EU average of £2,263.
The ILC says the fact pack contains useful evidence which could be crucial for guiding both Westminster and Brussels in their responses to the changes.
The full report and findings will be officially launched in Brussels at the European Economic and Social Committee on Wednesday 5th November.
More on pensions:
Why the State Pension is unsustainable
UK pension pots will run out in just five years
Comments
Be the first to comment
Do you want to comment on this article? You need to be signed in for this feature