State pensions as a share of living costs vary significantly across Europe. In Northern and Western Europe, pensions often meet or exceed basic expenses, while in Eastern Europe and the Balkans they frequently fall short.

Are state pensions sufficient to cover the cost of living in Europe?

In 20 out of 39 European countries, they are not, according to a study by payroll and HR firm Moorepay. Living costs do not include rent. If rent were included, this number would likely increase significantly.

So, how much of living costs are covered by state pensions, excluding rent, as of the end of 2025?

Across 39 European countries—including EU member states, candidate countries, EFTA countries, and the United Kingdom—pensions as a share of living costs range from 22% in Georgia to 225% in Luxembourg.

This reflects the cost of living for a single person and the average pension as of the end of October 2025.

While Moorepay collected data on average pensions, living cost data comes from Numbeo and represents national averages. The situation may vary depending on the city.

For example, in Luxembourg, the average state pension is €28,790, while the cost of living is €12,791. This leaves a surplus of €15,989, meaning the pension is more than double the cost of living.

Pensions are also more than double living costs in Italy (210%) and Finland (208%). Spain (199%) and Denmark (189%) are also close to this level.

Pensions as a share of living costs range between 150% and 180% in several other countries, which is still relatively high. These include Iceland (179%), Norway (178%), Germany (176%), Belgium (170%), Austria (165%), France (160%), the Netherlands (159%), and Sweden (158%).

Six countries fall between 100% and 150%. State pensions are still sufficient to cover the cost of living for a single person, excluding rent, but the surplus is limited.

These are Switzerland (131%), Ireland (126%), the United Kingdom (120%), Poland (112%), the Czech Republic (108%), and Greece (103%).