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Sat, 24 Oct 2026

Sat, 24 Oct 2026 How does the UK state pension compare with other countries?

Do British pensioners have it better or worse than those in other countries?

* The UK's state pension has increased faster than earnings since 2011 due to the triple lock formula, but pensioner poverty has still risen.
* Despite this, pensioners are less likely to be in relative poverty compared to families with children or working-age people.
* Funding the triple lock has cost the state billions more than initially expected and is set to balloon further.
* Andy Burnham plans to introduce a new system that will see the state pension increase by at least inflation or 2.5%, removing the automatic annual link with average earnings.
* The UK's replacement rate (pension as a percentage of average earnings) is lower compared to other wealthy countries, even considering compulsory occupational pensions and after-tax benefits.
* However, including income from private and personal pensions narrows the gap, but still leaves those reliant on state pension worse off.
* The amount spent on the state pension is set to top £150bn a year, making it the single most expensive benefit to fund in the UK.
* The OECD predicts that the UK's pension costs may rise less under Burnham's revised triple lock system but could still lead to more borrowing.
* One in every 13 pounds the UK government spends goes towards paying interest on existing debt.
* Many countries with generous pensions, such as Italy, have faced pressure to reform their systems.
* The UK's auto-enrolment into workplace pensions appears ahead of the game, but raises concerns about the gender pension gap, where women typically receive a third less than men due to private pension reliance.