The Spanish state pension leaves pensioners over two times better off than the UK’s.
Spanish retirees can expect a maximum pay-out of €2,617.53 (around £2,284) per month, compared to the UK’s £802.32.
New research on the state of European pensions has found that Britain only places 16th on the Pension Breakeven Index.
The UK state pension income is worth only 16.61 percent above the amount needed to cover the average costs of bills.
The UK’s state pension currently only pays £114.24 more than the average cost of living for a retiree.
Meanwhile, Spanish retirees can expect a maximum pay-out of €2,617.53 (around £2,284) per month, 407.4 percent over the breakeven point and the equivalent of £1,403.89 more than the UK pensioners.
The Pension Breakeven Index finds that countries such as Belgium, which have a similar level of high costs of living to the UK, pay its retirees a maximum of €3,100 (around £2,705.66) per month for those who have worked for 45 years.
This is a pay-out worth 376 percent over the breakeven point, compared to the UK’s “sluggish” 16.61 percent.
The trend continues towards the UK’s closest economic rivals in France, whose state pension pays out nearly double the amount of the UK’s. Experts have suggested that retirement in the UK is no longer the secure position it used to be.
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In the UK, over 3.5million people aged 50-64 across the nation are currently classified as ‘economically inactive’, while stubbornly high living costs have continued to place retirement plans on hold for a majority of Britons.
The Autumn Statement is expected to exclude bonuses from earnings calculations after experts have also voiced concerns over the fiscal implications of a triple lock reinstation, with reports from the IFS revealing it could cost the government an additional £45billion by 2050.
However, this also means the state pension could be worth between £10,900 to £13,000 a year by 2050, providing a significant boost to Britain’s current retirement income.
Commenting on the results of 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.
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“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.
‘While the increase in state pension in line with inflation is needed and welcomed, it’s clear that those over 66 need to look at other options rather than just relying on the state pension.
“Planning for life after work is crucial and it’s important to seek advice from a pension advisor if you aren’t sure where to start.”
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