Our map shows how much an average person would get as a pension compared to a working salary in different European countries (Picture: KCNA VIA KNS/AFP via Getty Image)
The UK trails behind much of Europe when it comes to the generosity of our pensions, compared to the salaries pensioners made while they were working.
Statistics from 2022 show Brits make an average of 54.4% of what they earned as a worker once they start withdrawing their pension.
By contrast, pensioners in Portugal make close to 100% of their previous earnings, according to research from the OECD – and the EU average is 68.1%.
The figures come after Chancellor Rachel Reeves outlined the first Labour Budget for 14 years yesterday, containing a mammoth £40 billion of extra taxes.
She confirmed that due to the triple lock, the state pension will be rising by 4.1% in the next financial year.
That means more than 12 million pensioners will receive up to £470 per year extra.
Previously, the government has pointed towards this increase as sufficient to cover the costs lost by most pensioners following the controversial cuts to the Winter Fuel Allowance.
Also in yesterday’s Budget was an announcement that unused pension funds will be included within a person’s estate for Inheritance Tax purposes, as the Treasury seeks to boost its revenues from that source.
Source:: Metro
