UK state pension 'least generous in the developed world'

State pension 29% of average earnings

Hannah Godfrey
clock • 2 min read

The UK state pension is the "lowest in the developed world", according to the latest OECD figures that display a comparison between the more generous state-funded pensions and the least.

According to the data, the UK is at the bottom of the global pensions league table, with the least generous state provision. As a percentage of average earnings, the UK government pays out 29%. Comparatively, the Netherlands pays out 100.6%, Spain pays out 81.8%, Germany pays out 50.5%, the USA 49.1%, and Poland 38.6%. Former pensions minister Ros Altmann (pictured) said the combination of an ageing population and a decline in the traditional final salary-type pension schemes, the UK faces rising risks of old-age poverty. "In April 2016, major reforms to the UK state pension were s...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

HMRC updates on information sharing for IHT on pensions

HMRC updates on information sharing for IHT on pensions

Second technical note

Alex Levy
clock 01 September 2026 • 2 min read
Pension first or last? What the numbers really tell us

Pension first or last? What the numbers really tell us

'Focusing solely on reducing the pension before death can increase lifetime tax'

Joshua Croft
clock 28 August 2026 • 4 min read
IHT on pensions: New thinking on taking income in retirement?

IHT on pensions: New thinking on taking income in retirement?

‘This has undoubtedly had a huge impact on planning for many clients’

Lisa Webster
clock 26 August 2026 • 3 min read