The European country where people of State Pension age get paid £5,200 per month

A decade of research has shown that many State Pension recipients across the country have been consistently struggling to make ends meet, with almost one in five pensioners currently living in poverty, despite an increase in payments of 8.5 per cent this month. But this problem is not universal, in fact, there are some countries where pensioners receive over £5,000 per month in benefits.

New research by pension advisors Almond Financial explores similar data across all 50 European countries to determine which nation provides the most for retirees relative to its current cost of living data. They analysed the average cost of general living expenses such as grocery shopping, restaurant meals, and energy bills to estimate a monthly cost of living, excluding rent.

In this year's report, the UK moved up one spot from last year, now ranking 15th in the top 30, still hovering just above the breakeven point for pension income. With only an 18.28 per cent margin above the breakeven point, the UK Government pays a mere £148.13 more in State Pension than the average cost of living for a pensioner, reports the Daily Record.

READ MORE: DWP issued warning over 'incredibly complex' pension system amid 'unacceptable' poverty

During the 2024/25 financial year, the maximum UK state pension will provide a total of £958.53 per month to retirees. Recent data indicated that the monthly cost of living for a single person (excluding rent) is £810.40.

It's crucial for UK residents to note that the State Pension can be received either weekly or every four weeks. The full New State Pension currently stands at £221.20 per week, equating to £884.80 for each payment period, whereas recipients of the full Basic State Pension get £169.50 weekly, which totals £678 every four weeks.

Luxembourg leads the European Pension Breakeven Index, with its pension system offering an average payout of £5,201 a staggering £4,243.35 more than the UK's State Pension. Given the similar living costs, for now, retirees in Luxembourg are set for a comfortable retirement.

Here's a glance at the top 10 European nations with the highest State Pension payouts per month:.

1. Luxembourg - £5,201

2. Spain - £2,709

3. Belgium - £2,698

4. Liechtenstein - £2,148

5. Switzerland - £2,148

6. Iceland - £1,893

7. Denmark - £1651

8. France - £1,564

9. Cyprus - £1,507

10. Norway - £1,412

Sam Robinson, principal financial adviser at Almond Financial, commented on the findings: "The UK has a system that is just above the breakeven point which means at present, there isn't much room to manoeuvre for those battling the cost of living crisis. And while it is positive that the UK finds itself among the top half of countries, for how much longer is the question."

"Although the increase in the State Pension was well intended, it actually works out to be a real-terms pay cut for most pensioners in comparison to last year's report which saw pensioners have approximately £115 surplus after essentials. It's clear that those over 66 need to look at other options rather than just relying on the State Pension."

"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."

Five ways to maximise your retirement income

• Use pay rises to increase pension contributions and pay more into pension when loans and other commitments end

• Maximise employer contributions

• Ensure your investment approach is efficient and suitable to your financial situation

• Maximise tax relief available

• Avoid taking large lump sums of money from the pension when there isn’t a need - taking the first 25% of your pension will be tax-free cash although any future withdrawals will be taxable.