Pension Gap in the EU: Which Country Pays 10 Times More.

According to inkorr.com: European pensioners live in absolutely different conditions: in Luxembourg, the average annual pension exceeds 31 thousand euros, while in Bulgaria this figure does not even reach 4 thousand. These data are provided by the Eurostat statistical office in its new report on pension expenditures of EU countries.

EU Countries with the Highest Pensions

According to the Eurostat report, in 2022, the average annual expenditure per pensioner in the EU was 16,138 euros, which is approximately equal to 1,345 euros per month. However, it is worth noting that the gap between countries is striking:

• The highest pensions are received in Luxembourg (€31,385), Iceland (€35,959), Norway, and Denmark (over €30,000);

• Higher than the average level in the EU 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 out a clear division of the continent: the West and North have significantly better indicators, while the Balkans and Eastern Europe lag behind significantly. However, the difference in purchasing power softens these contrasts: while the gap in euros between the highest and lowest pensions is 8.8 times, when considering the cost of living, it is only 3.5 times.

In purchasing power standard (PPS) terms, pension expenditures range from 5,978 PPS in Slovakia to 21,162 PPS in Austria. Despite low real payouts, Turkey outpaces some EU countries in PPS terms, with 8,128 PPS.

What is the Dynamics of Pension Amount Changes in Europe

Changes in pension dynamics are also noticeable. In 2022, payouts decreased in only three countries — Turkey, Ireland, and Greece (by less than 5%), while in Bulgaria by 33%, in the Czech Republic by 16%, and in Latvia, Lithuania, Montenegro, and Romania by more than 10%.

Despite the efforts of the European Union, the prospect of adequate pensions remains a concern. According to a joint report by the European Commission and the Committee on Social Protection, the income replacement rate after retirement is gradually decreasing, and the risk of poverty among people over 65 has risen to over 20% of the population. This is about 18.5 million Europeans for whom pensions do not provide for a decent life after the end of their working careers.