Britain places 16th on the Pension Breakeven Index, with a state pension income worth only 16.61 percent above the amount needed to cover the average costs of bills.
According to research by Almond Financial, the state pension currently pays just £114.24 more than the average cost of living for a retiree. Meanwhile, Spanish retirees can expect a maximum payout of €2,617.53 per month, the equivalent to £1,403.89 more than the UK state pension.
Coupled with the country’s low cost of living, pensioners can expect a comfortable retirement in the sun with pension income at 407.4 percent over the breakeven point, which tops the list.
Commenting on the the research, Sam Robinson, principal financial adviser at Almond Financial, said: “The data is an interesting insight into just how well people can live when they retire right across Europe.
“For those approaching state pension age in Spain, retirement is a particularly enticing prospect with a healthy pension, low cost of living and not to mention the fantastic weather. Closer to home, the UK has a system that is just above the breakeven point which means at present, there isn’t much room to manoeuvre for those battling the cost of living crisis.
“And while it is positive that the UK finds itself among the top half of countries, for how much longer is the question.”
Belgium ranked second on the breakeven list, with the country’s pension system paying a maximum of €3,100 per month for those who have worked for 45 years.
Although not particularly low, the monthly cost of living for a single person in Belgium, excluding rent, is €822.17 (£720.45) but thanks to the generous pension, retirees are still likely to feel comfortable with a payout worth 376.14 percent over the breakeven point.
In GDP, Luxembourg placed third paying up to £3,050.57 to pensioners every month against average living costs of £847.32, 306.03 percent above the breakeven point.
“And while it is positive that the UK finds itself among the top half of countries, for how much longer is the question.”
Belgium ranked second on the breakeven list, with the country’s pension system paying a maximum of €3,100 per month for those who have worked for 45 years.
Although not particularly low, the monthly cost of living for a single person in Belgium, excluding rent, is €822.17 (£720.45) but thanks to the generous pension, retirees are still likely to feel comfortable with a payout worth 376.14 percent over the breakeven point.
Luxembourg placed third, paying up to £3,050.57 to pensioners every month against average living costs of £847.32, 306.03 percent above the breakeven point.
Bosnia and Herzegovina ranks fourth, paying £979.72 a month against average living costs of £411.20, 238.26 percent more than the breakeven point.
Cyprus places fifth with a pension rate worth £1,485.81 a month against average living costs of £646.93, 229.67 percent more than the breakeven point.
Liechtenstein and France rank sixth and seventh respectively, paying £2,061.02 and £1497.73 to state pensioners every month.
Denmark, Switzerland, and Norway rank eighth, ninth and 10th paying up to £1,647.56, £2,123.54, and £1,579.58 a month respectively.
Iceland, Ukraine, and Bulgaria rank 11th, 12th and 13th, paying up to £1,524.20, £482.65, and £670.66 a month respectively.
Closing the gap with the UK are the Netherlands and Ireland placing 14th and 15th, with average state pension payments worth £1,102.34 and £962.08 a month respectively.
On the opposite end of the table, Armenia ranked bottom (30th) of the Pension Breakeven Index.
According to Almond Financial, the Armenian state pension system provides eligible individuals with approximately £67.79, even though the average monthly living costs are £506.81.
Second last in the index is Georgia, offering retirees a monthly pension payment of just £82.34, despite average living costs exceeding £477.
