Europe's richest retirees: how does the UK rank?

Important information - the value of investments and the income from them, can go down as well as up, so you may get back less than you invest.

Although the UK and European surveys measure broadly similar things, they're not identical, so the comparison isn't perfect. This is why the UK data is not included in the table above.

Both measures look at property wealth, savings, investments and private pensions - but crucially, the UK number includes benefits accrued in a workplace final salary pension, whereas the European ones don’t generally include this. Benefits built up in occupational pensions are likely to make up a big part of wealth among older UK households.

Wealth, however, is only part of the story. Income matters too.

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Wealth does not always reflect income

As with wealth, there are big differences in how much income older people enjoy across Europe.

While in Luxembourg (again the best performing country), the typical older household has a pre-tax income of more than £80,000, in Hungary and Lithuania the median is only around £7,000 per year.

Wealth is not always a good indicator of income. For example, older households in Finland, Austria and the Netherlands sit around the middle of the pack for wealth but have relatively high levels of income. This most likely reflects the impact of State Pensions and payouts from occupational pensions, which will be reflected in people’s incomes but not their wealth.

The UK does not have comparable data for the average pre-tax income of older households. The closest we have is the ONS data on average disposable income among retired households, which measures their income after tax. This is just under £30,000.

A retired household taking home around £30,000 a year might have a pre-tax income of around £34-35,000, depending on the mix of State Pension, private pensions and other taxable income. This suggests the UK would rank relatively well against European peers for income, although we’re not comparing like-for-like.

How rich do they feel relative to others in their country?

Another important metric to consider is how the incomes of older people compare to the rest of the population.

We took the same list of countries as above and looked at the disposable incomes of people aged 66–75 with the average income of the population in each country for every location where data was available. On this measure, the UK sits around the middle of the pack, with older people enjoying incomes worth around 91% of the national average

Interestingly, in countries including Italy, Luxembourg, Spain and Portugal, people in their late 60s and early 70s actually have higher average disposable incomes than the population as a whole. Retirees there are likely to feel particularly comfortable compared with other generations.

That reflects differences in pension systems, labour markets and demographics rather than meaning retirees are universally better off.

What can we learn from the data?

1. Retirement wealth and retirement income aren't the same thing

Someone can have a valuable home and a sizeable pension pot but still live on a relatively modest income. Equally, someone with fewer assets may enjoy a comfortable retirement if they're supported by a generous state pension or workplace pension.

Thinking about both wealth and income gives a much better picture of financial security in retirement.

2. Your home is likely to be your biggest asset

The European data shows that, for most households, their home is their largest single asset. Countries with higher home ownership rates and stronger house price growth tend to have wealthier older households because much of their wealth is tied up in property.

That means many retirees may appear wealthy on paper, even if much of that wealth isn't easily accessible without downsizing or borrowing against their home. Expensive property transaction taxes, such as stamp duty, can make it hard to convert property wealth into cash to spend in retirement.

3. International comparisons only tell part of the story

Headline numbers can be misleading without context.

A retiree with £500,000 of wealth might feel like a millionaire in Latvia but find it stretches much less in Luxembourg. Housing costs, taxes, energy bills and the overall cost of living all have a huge impact on how comfortable someone feels.

The figures also don't capture the value of state support. In the UK, for example, healthcare is provided free at the point of use through the NHS. Other countries may require greater private healthcare spending or insurance. Equally, some European countries provide more generous publicly funded long-term care, whereas many UK retirees try to preserve their wealth in case they need to pay for care later in life. Looking at financial wealth alone misses an important part of how well-off people feel.

Finally, these figures describe the "typical" older household. They don't show how wealth is distributed. Every country has retirees with substantial wealth and comfortable incomes, alongside many who struggle to get by.

How can you build greater financial security in retirement?

While every retirement journey is different, there are several steps that can help improve your long-term financial position.

1. Start saving as early as possible. Even relatively small pension contributions can grow significantly over several decades thanks to investment returns.

2. Make the most of employer pension contributions. If your employer offers matching contributions, ensuring you receive the full match can be one of the most valuable financial decisions you make.

3. Review your investments regularly. Your retirement savings should continue to reflect your goals, time horizon and attitude to risk throughout your working life.

4. Check you qualify for a full State Pension. Even in the UK, where the State Pension makes up a smaller proportion of older people’s incomes, it remains the backbone of most people’s retirement plans. Paying to make up for missed years if you aren’t on track for the full amount can make a lot of sense for some people.

5. Consider your housing decisions carefully. Your home is likely to become one of your largest assets, so decisions about buying, moving or downsizing can have a major impact on your retirement finances.

6. Don't focus solely on building wealth. A successful retirement depends on turning your savings into a sustainable income. Understanding how your workplace pensions, State Pension and other investments work together can help you plan with greater confidence.

The bottom line

The UK compares relatively well with many European countries when it comes to retirement wealth, but wealth alone doesn't determine how comfortable retirement feels. Income, housing costs, healthcare, state support and the cost of living all impact quality of life.

Rather than comparing yourself with retirees overseas, the most valuable lesson is that building financial security is a long-term process. Saving consistently, making the most of your pension and reviewing your plans regularly can all help improve your chances of enjoying a comfortable retirement - wherever you live.

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Sources: 

¹ Household total wealth in Great Britain - Office for National Statistics
² Household Finance and Consumption Survey: Results from the 2023 wave
³ Pensions at a Glance 2025 (EN)