UK State Pension: Comparison with Other Countries
BBC News explores how the UK state pension compares with those in other nations.
Image source: 10000 hours, Getty Images
By Dharshini David, Deputy economics editor
Published 24 October 2026, 01:09 BST
Growing older is a topic that rarely crosses our minds. Yet, how we fund our retirement and the amount we receive has been a subject of much debate.
The triple lock formula, ensuring state pensions rise by the greatest of 2.5%, earnings growth, or inflation, has led to faster increases since its introduction in 2011. However, despite this, pensioner poverty has slightly increased alongside rising housing costs.
Despite these costs, pensioners are less likely to experience relative poverty compared to families with children or working-age individuals. The triple lock has, however, added significant financial burdens to the state, with costs set to rise further.
Andy Burnham proposes a new system in the coming years, reducing state pension increases to at least inflation or 2.5% and removing the link with average earnings. This could result in less generous increases but maintain a connection with earnings growth over time.
Comparison with Other Countries
One way to gauge state pension generosity is through the replacement rate, comparing the typical pension to average earnings. According to the OECD, on its 2022 assumptions, the UK's basic state pension ranks lower among wealthy countries.
Including occupational and personal pensions narrows the gap, but those relying solely on the state pension may be worse off compared to retirees in other countries.
Should Spending on UK Pensions Increase?
With the state pension set to exceed £150 billion annually, it's the most expensive benefit to fund. However, OECD data shows the UK spends a lower percentage of its economy on total retirement benefits compared to other wealthy nations.
This raises questions about political priorities and the impact of an ageing population on pension funding requirements.