European pensioners live in completely different realities: while in Luxembourg the average annual pension exceeds 31 thousand euros per year, in Bulgaria it does not even reach 4 thousand. This gap is shown in a new Eurostat report on pension expenses in EU countries. Euronews writes about this.
Ranking of EU countries with the highest pensions
According to Eurostat, in 2022, the average annual spending per pensioner in the EU amounted to 16,138 euros, or approximately 1,345 euros per month. However, the variation between countries is striking:
- the highest pensions are received in Luxembourg (31,385 €), Iceland (35,959 €), Norway, and Denmark (over 30,000 €);
- above the EU average are Sweden (22,436 €), Finland (21,085 €), and Italy (19,589 €);
- the lowest pensions are in Bulgaria (3,611 €), Albania (1,648 €), Turkey (2,942 €), Bosnia (3,041 €), and Serbia (3,486 €).
Experts point to a clear division of the continent: the West and North have significantly better indicators, while the Balkans and Eastern Europe lag significantly behind. At the same time, the difference in purchasing power smooths out the contrasts: while in euros the difference between the highest and lowest payments is 8.8 times, taking into account the cost of living it is only 3.5.
When recalculated according to purchasing power standards (PPS), pension expenditures range from 5,978 PPS in Slovakia to 21,162 PPS in Austria. Turkey, despite its low real payments, in PPS equivalent outruns some EU countries - 8,128 PPS.
What is the dynamics of pension sizes in Europe
Significant changes have also occurred in the dynamics of payments. In 2022, pensions decreased in only three countries - Turkey, Ireland, and Greece (by less than 5%), whereas in Bulgaria they increased by 33%, in the Czech Republic - by 16%, and in Latvia, Lithuania, Montenegro, and Romania - by over 10%.
Despite the European Union's efforts, the future adequacy of pensions remains under pressure. According to a joint report from the European Commission and the Social Protection Committee, the income replacement rate after retirement is gradually decreasing, and the risk of poverty among people aged 65+ has risen to over 20% of the population. This amounts to about 18.5 million Europeans for whom a pension does not guarantee a decent life after the end of their working careers.
Earlier, we reported which country has the largest pension fund in the world.