A recent report by Moorepay, a company specializing in payroll and human resources services, highlights that pensions in 20 out of 39 European countries are insufficient to cover basic living costs. This report encompasses countries from various parts of Europe, including EU member states, candidate countries, EFTA member states, and the United Kingdom.
The data shows a significant disparity in the coverage of pensions for living costs, with Luxembourg reaching 225%, while Georgia drops to 22%. These percentages reflect the living costs for a single person and a single pension as of late October 2025.
Event Details
According to the report, the average pension in Luxembourg is 28,790 euros, while living costs amount to 12,791 euros, leaving a surplus of 15,989 euros. This indicates that the pension covers more than double the living costs. A similar situation exists in Italy and Finland, where pensions exceed living costs by 210% and 208%, respectively.
Conversely, there are 20 European countries struggling with inadequate pensions to cover living expenses, including Albania, Ukraine, and Moldova, where pensions cover less than 42% of living costs. In these nations, many elderly individuals rely on family support to meet their basic needs.
Background & Context
Historically, pension systems in European countries vary significantly. In Northern and Western Europe, pension systems are more developed and effective, contributing to a good standard of living for the elderly. In contrast, Eastern European and Balkan countries face challenges with underfunded and resource-poor pension systems, adversely affecting living standards.
According to the Organisation for Economic Co-operation and Development (OECD), approximately 66% of the income of individuals over 65 years old in Europe relies on public transfers. This underscores the importance of pensions as a fundamental part of income for the elderly on the continent.
Impact & Consequences
The significant gap in pensions increases reliance on family support in many countries, placing additional pressure on households. This gap also affects social welfare levels and exacerbates the economic divide between wealthy and poorer nations in Europe.
Noel Whiteside, a visiting professor at Oxford University, emphasizes that some European countries experience higher poverty levels than others, necessitating financial support from families for the elderly. This dynamic impacts social and economic stability in those countries.
Regional Significance
This data is crucial for the Arab region, where many countries face similar challenges in pension systems. In some Arab nations, the elderly heavily rely on government pensions, making it essential to improve retirement systems to ensure a decent standard of living.
Moreover, the gap between rich and poor countries in Europe may reflect similar challenges in Arab nations, where governments need to enhance pension systems and provide necessary support for the elderly to ensure social and economic stability.