- October 1, 2025
- 3:19 pm
- World News
Difference in Pension Sizes in Europe
The size of pensions in European countries varies significantly, creating a noticeable gap between the western and eastern regions of the continent.
Pensioners in Iceland, Luxembourg, and Scandinavian countries have the opportunity to enjoy a high level of income, while their counterparts in Eastern and Central Europe often face the need to economize on essential expenses. Specialized studies have identified which countries have the highest and lowest pensions.
Where the Highest Pensions Are Paid
According to the latest research, Iceland confidently ranks first among countries in terms of average pension size, reaching 35,959 euros per year. In the European Union, Luxembourg leads, where the average payment is 31,385 euros, reports the Euronews portal.
Other northern countries have not lost out. Norway and Denmark also please their pensioners with payments exceeding 30,000 euros per year. In Scandinavian countries such as Sweden, the average pension is 22,436 euros, in Finland – 21,085 euros.
Representing Central and Southern Europe, Austria stands out here as well. The average pension payment exceeds 20,000 euros. Italy is close with a figure of 19,589 euros, in France – 18,855 euros, and Germany offers its pensioners 17,926 euros.
Where Pensions Are the Lowest
A completely different picture is observed in Eastern Europe, where pensioners face serious financial difficulties. In Bulgaria, the average pension is about 300 euros, and the minimum tends towards 240 euros. These amounts are often insufficient to cover basic needs, forcing the elderly to economize or seek additional sources of income.
In Latvia, the situation is not much better: the average pension here reaches 390 euros, but the high level of inflation and economic problems make these payments completely incompatible with basic needs. In Lithuania and Estonia, pensioners receive even less — only 220-230 euros per month.
Conditions for a Comfortable Old Age
In terms of pension inequality, Europe demonstrates a sharp contrast between affluent western countries and the eastern part of the continent, where economizing becomes a decisive factor.
According to the Mercer CFA Global Pension Index for 2024, the best pension index is represented by the Netherlands — 84.8 points, and the average payment exceeds 1,200 euros per month. Iceland with 83.4 points and Denmark (81.6 points) maintain high standards when it comes to pensions and final payments exceeding 1,100 euros.
Israel scores 80.2 points and a payment of more than 1,000 euros, completing the “top five” countries with the best conditions for the elderly. For residents of Ukraine, life on a pension looks less attractive, with an average monthly payment of about 130-135 euros. Working pensioners in Moldova can expect 200 euros.
Financial Trends in Pensions
Despite the fact that some northern oil-rich countries have a budget for decent payments, in southern countries such as Italy, France, and Spain, the situation is different. The state share of pension expenditures varies from 9% to 12% of GDP, but actual payments per capita do not exceed 20,000 euros. It is believed that, considering purchasing power, modern pensioners have a better chance for a comfortable life.
Experts explain this process with modern realities. An aging population, “pay-as-you-go” financial habits, and moderate economic growth form a system that lacks sustainability. Older people are noticeably less protected in these countries.
The problem is most pronounced in Central Europe, where, despite a GDP share comparable to northern countries, the average pension is fixed at around 7,000 euros per year.
There are methods for improving pension conditions. These methods include increasing salaries, attracting older workers to the economy, and developing voluntary savings pension programs.
In some cases, pensioners can receive additional allowances for extra service. But this cannot exceed 1% of the subsistence minimum in the country.