New research has found people on the UK State Pension are being left behind in the cost of living crisis as pensioners barely break even, despite an increase in entitlement. The research, conducted by pension advisors Almond Financial, looked at the current State Pension in comparison to the average cost of living in the UK.
Almond Financial then looked at similar data in all of Europe’s 50 countries to establish which country offers the most to retirees in comparison to the country’s current cost of living data. It then analysed the average cost of general living expenses such as food shopping, the price of a meal at a restaurant and energy bills to discover an estimated cost of living per month, excluding rent.
The maximum UK state pension will pay a total of £958.53 per month to retirees during the 2024/25 financial year and recent data stated the monthly cost of living for a single person is £810.40. The full New State Pension is worth £221.20 each week, or £884.80 every pay period, while someone on the full Basic State Pension receives £169.50 per week, some £678 each pay period.The Luxembourg pension system pays out an average of £5,201, the equivalent to a whopping £4,243.35 more than the UK State Pension. With a similar cost of living, at least for the meantime, pensioners in Luxembourg can enjoy a comfortable retirement.
“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.
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