In many European countries, pension incomes are significantly lower than earnings from employment before retirement. As a result, many older individuals struggle to maintain their standard of living after retiring, reports N1. 

Almost one in six retirees in the European Union (EU) is at risk of poverty, with the rate increasing from 12% in 2013 to 15.5% in 2023, according to Euronews.

How Do Pensions Compare to Pre-Retirement Earnings Across Europe?

Which countries provide the highest share of earnings after retirement, and which offer the lowest?

New Eurostat data compares the median pension income of individuals aged 65–74 with the median earnings of those aged 50–59, excluding other social benefits. This provides insight into pension adequacy across Europe.

In 2023, the overall replacement ratio in the EU stood at 58%, meaning that someone who earned €100 between the ages of 50 and 59 would receive €58 in pension income between 65 and 74. However, this ratio varied significantly across the EU, from 35% in Croatia to 78% in Greece.

Spain (77%) and Italy (75%) followed Greece at the top of the list, while Portugal also exceeded the EU average with 61%.

At the bottom of the ranking, Croatia had the lowest replacement ratio at just 35%, followed by Lithuania (36%) and Ireland (39%). For comparison, Montenegro had a ratio of 38%, Slovenia 44%, and Serbia 46%.

Southern European countries tend to have the highest pension incomes relative to pre-retirement earnings, while Eastern and Baltic nations generally have the lowest ratios.

Gender Pension Gap

The replacement ratio also varies by gender. In the EU, men (60%) received three percentage points more than women (57%).

"Inequalities in pension income, poverty in old age, and pension coverage persist, despite the narrowing gender gap in average pensions," states the European Commission and Social Protection Committee’s Pension Adequacy Report.

Which Countries Offer the Highest Pensions?

Pension amounts vary significantly across Europe. Euronews analyzed figures from 2021, showing that the average monthly gross old-age pension per recipient ranged from €226 in Bulgaria to €2,575 in Luxembourg, with an EU average of €1,294.

Croatia was far below the EU average, with a pension of €388 at the time. While pensions have since increased, the current average pension in Croatia is around €630.