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

Editor's view: How disjointed is the government's salary sacrifice change?

Editor's view: How disjointed is the government's salary sacrifice change?

The editor's Friday Night Takeaway from 19 December

Jen Frost
clock 19 December 2025 • 3 min read
Pension reflections: Retirement's biggest moments of 2025

Pension reflections: Retirement's biggest moments of 2025

What can we expect to see for pensions next year?

Jenna Brown
clock 18 December 2025 • 15 min read
Women, wealth, and worry: How to close the retirement gender gap

Women, wealth, and worry: How to close the retirement gender gap

Julia Peake explores the retirement gender gap and suggests how it can be closed...

Julia Peake
clock 16 December 2025 • 4 min read