The pension systems of European countries differ significantly in terms of the amount of payments and the mechanism of accrual. Find out where in Europe the highest and lowest pensions are and compare them with Ukrainian realities

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Pension provision is one of the key indicators of social protection and economic development. The amount of pension payments in different European countries varies significantly, which directly affects the quality of life of the elderly. The article below describes how the pension system is organized in different European countries and the situation in Ukraine.

You can learn how to calculate your future pension payments in Ukraine via Diia here.

In which European countries do pensioners receive the highest pensions?

Luxembourg

Luxembourg ranks first in terms of pension payments in Europe. Pensioners can receive about 3000 euros per month. Such generosity of the pension system is due to the country's high level of economic development and effective social policy.

Switzerland

The Swiss pension system is considered one of the most reliable in the world. The average pension is 2400 euros per month. The system consists of three levels:

– State pension

– Occupational pension insurance

– Voluntary private savings

Norway

Norwegian pensioners receive an average of 2000 euros per month. Oil revenues play a significant role in the formation of the pension fund, which the state effectively invests in the welfare of citizens. However, in addition to the basic pension, citizens can count on additional payments subject to the appropriate length of service or a certain threshold of insurance contributions.

Denmark

The Danish pension system provides pensioners with an average of 1800 euros per month. The peculiarity is that the amount of the basic state pension depends on the previous salary and available savings. If a person had a high income and has savings, the pension will be lower. Conversely, if a person earned little or did not work at all, the state will pay the required subsistence level. This makes the system more socially just and one of the best in the world. According to an average estimate, the pension in Denmark is about 60-70% of labor income.

It is worth noting that Iceland, the Netherlands, Finland, Sweden, and the United Kingdom also have good pension systems.

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Countries with average payments or where a pension will be enough to live on?

Germany

The average pension in Germany is about 1400 euros per month. At the same time, the minimum pension here is about 520 euros. The system is based on the principle of intergenerational solidarity and takes into account the length of service and the amount of contributions during the working period. It is worth noting that Germany was the first country to introduce a social insurance system where those who work support those who retire. A similar system is currently in place in Ukraine, but due to the “aging of the population, the government is already raising the issue of a partial transition to a funded pension system.

France

French pensioners receive an average of 1,300 euros per month. However, the state pension in the country is only 50% of the salary on average. At the same time, citizens who have additional pension payments from other sources can receive a pension that will be up to 80% of their salary. It is also worth noting that in some cases, French pensioners have an income even higher than those who are working.

Spain

The Spanish pension system is considered one of the most socially oriented in Southern Europe. The average pension in the country is about 1,100 euros per month, which allows pensioners to maintain a fairly comfortable standard of living. Interestingly, Spain has a system of “14 pensions” per year - pensioners receive additional payments in July and December, which helps them better plan their expenses and have a financial cushion for holidays or celebrations.

It is also worth noting that the amount of pensions in Spain can vary significantly depending on the region of residence and length of service. For example, in the Basque Country and Madrid, pensions are usually higher than in less developed regions of the country.

Countries with the lowest pensions in Europe

Hungary

The average pension in Hungary is approximately 400 euros per month, which is one of the lowest in Central Europe. The pension system here is based on the principle of intergenerational solidarity, but due to the low level of pension payments, many retirees need additional assistance from the state or relatives.

Latvia

In Latvia, the average pension is about 390 euros per month. The pension system in the country is based on mandatory contributions during the working period, but due to economic difficulties, the average amount of payments is one of the lowest in the EU.

Romania

In Romania, the average pension is about 350 euros per month, and the minimum pension is about 280 euros. Although the country's economy is growing, the pension system has not kept pace with these changes, and pension benefits remain low compared to other European countries. The government is gradually introducing reforms to improve the living conditions of pensioners, but financial difficulties for the elderly remain significant, especially in rural areas.

Bulgaria

Bulgaria has one of the lowest levels of pension benefits in the EU, with an average pension of about €300 per month. However, the minimum pension is even lower at around 240 euros. Bulgarian pensioners often have difficulty covering basic expenses such as food, utilities, and medicine.

Pension system in Ukraine: how much do pensioners receive?

In Ukraine, the average pension as of 2024 is approximately 5500 hryvnias (about 140 euros), which is one of the lowest in Europe. This situation is due to several factors:

– The difficult economic situation

– Demographic problems

– High level of shadow economy

– Martial law in the country

The minimum pension in Ukraine is set at the level of the subsistence minimum for a disabled person and amounts to UAH 2,361. However, the actual subsistence level for a disabled person, according to the Ministry of Social Policy, is UAH 7200. This means that the current level of provision does not even cover the basic needs of a person of retirement age.

By the way, under certain conditions, Ukrainian citizens can receive a pension in several countries at the same time. To whom this option is available and what is required for this, please follow the link.

We remind you! Choosing the best place to retire depends primarily on your personal preferences. However, there are many opportunities to explore different cultures and countries that are suitable for this period of our lives. Read about the best countries for seniors in our previous article.

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