UK pensioners are left with just £220 a month on average, after covering basic living costs, far behind much of Europe, new analysis suggests.

The 2026 Pension Breakeven Index from Almond Financial found the UK state pension sits just 26% above the cost of essentials, highlighting how little financial breathing room many people have.

On average, pensioners in the UK receive around £1,045 per month, while basic living costs reach roughly £825, leaving only a modest surplus.

That places Britain behind several European countries, including Ireland, France and Spain, where pensions stretch significantly further.

At the top of the rankings is Luxembourg, where pension income is more than six times higher than essential living costs.

Meanwhile, Armenia ranked lowest, with pensions falling 86% short of what is needed to meet basic expenses.

Experts say the figures raise fresh concerns about financial security in later life, despite recent state pension increases.

Sam Robinson, principal financial adviser at Almond Financial, said the latest uplift has improved the picture slightly, but not enough to close the gap with Europe, adding: “This year’s increase to the UK state pension has offered a welcomed boost to pension income versus the cost of living, meaning pensions could feel slightly better off.

“Despite this, the UK state pension still rests just above the breakeven point, and remains weak compared to other pension systems across Europe.

“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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He said pensions now sit just above the breakeven point but remain weak compared with many other systems across the continent.

The findings highlight the importance of planning ahead, with experts urging those approaching state pension age to seek advice and consider additional income sources.

For many in the UK, the data shows that even after a lifetime of work, financial comfort is far from guaranteed.

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