State pensions in Europe - Where do they best cover the cost of living?
State pensions as a share of the cost of living vary widely across Europe. In Northern and Western Europe, pensions often meet or exceed basic expenses, while in Eastern Europe and the Balkans they often fail to cover them.
Across 39 European countries, including EU members, candidate countries, EFTA countries and the United Kingdom, pensions as a share of the cost of living range from 22% in Georgia to 225% in Luxembourg. This reflects the cost of living for a single person and a pension at the end of October 2025.
While Moorepay collected data on average pensions, the cost of living data comes from Numbeo and represents the national average. The situation may vary depending on the city.
For example, in Luxembourg, the average state pension is 28,790 euros, while the cost of living is 12,791 euros. This leaves a surplus of 15,989 euros. This means that the state pension is more than double the cost of living.
Pensions are also more than double the cost of living in Italy (210%) and Finland (208%). Spain (199%) and Denmark (189%) are also close to this level. Pensions as a share of the cost of living range between 150% and 180% in some other countries, which is still relatively high.
Six countries fall between 100% and 150%. State pensions are still enough to cover the cost of living for a single person, excluding rent, but the surplus is limited.
However, the situation is not good in many countries, falling below 65% in some cases.
Albania (29%), Ukraine (29%) and Moldova (42%) follow Georgia (22%) at the lowest end. In all of these countries, pensions are not enough to cover even half of living costs.
Global oil prices drop 6% - Trump postpones attacks on Iran power plants
US President Donald Trump said he had ordered a halt to attacks on Iranian energy infrastructure after "very good and productive talks" with Tehran and that......
The Albanian Investment Development Agency (AIDA) organizes Matchmaker Albania 2 - The largest business event in the country
On the 26th, at the Palace of Congresses, the Albanian Investment Development Agency (AIDA) will hold Matchmaker Albania 2, the largest business event in the......
How fruitful is the Dual system in Albania? - Ribaj: It makes young people understand the labor market
The dual system, which combines theoretical teaching with direct field practice, is increasingly being considered the "key" to rapid employment of young......
Social protection, towards reformatting - Increasing support for the disabled and reducing beneficiaries of economic assistance
The number of beneficiaries of economic assistance is expected to decrease by about 1,000 families during the years 2026-2027. By 2028, the number of......
How are countries coping with the increase in fuel prices? - Reduction of excise duty and VAT to somewhat mitigate the increase in prices
The unstoppable increase in fuel prices as a result of the conflict in the Middle East is having its effects in all countries of the world. Governments have......
Bank cards, the "new wallet" of Albanians - BoA: The market is dominated by debit cards, while lending remains limited
Albanians are carrying less and less cash in their pockets - and more and more on their cards. The latest data from the Bank of Albania shows a clear shift......
Implementation of reforms and EU objectives - Report in the Official Journal/ 41 measures reported, 21 implemented
The European Commission has published the assessment of the First Implementation Report of the Reform and Growth Facility, a document included in the......
Special situation in the hydrocarbon market announced - Government establishes Transparency Board, mandatory prices for companies
The Albanian government has declared a special situation in the hydrocarbon market, following the escalation of the crisis in the Middle East and its impact......
