The state pension in the UK falls behind all other developed countries, according to data from the Organisation for Economic Co-operation and Development (OECD).
The UK government pays 29% of average earnings, the lowest of all 24 countries in the OECD. This falls well below the average of 62.9% across these countries.
Mexico joined the UK at the bottom of the list, with a slightly higher state pension of 29.6%. In contrast, the Netherlands has the most generous state pension, paying 100.6% of earnings on average.
The top 5 state pensions among OECD countries were:
In response to the report, former pensions minister Ros Altmann warned that the state pension system is “unaffordable”, despite being lower than other OECD countries.
Writing on her blog, Baroness Altmann said:
We are one of the world’s leading economies, but our support for the oldest in society is not fit for purpose.
To avoid burdening younger generations with significant tax rises, it is vital that more is done to boost private pension saving.
You might be interested in...
10 Feb 2026
TC Group is delighted to announce its merger with the highly respected accountancy and advisory firm MMG Chartered Accountants in Scotland.
Learn more
TC Group strengthens its presence in Scotland, with latest merger
09 Feb 2026
Muscular Dystrophy UK turned to TC Group to help with their new finance technology.
Learn more
TC Farnell Clarke helps Muscular Dystrophy UK take control of its finance processes
09 Feb 2026
Our Leicester, Northampton and Milton Keynes offices' second episode of Beyond the Books! This month, Jordan Dennis is joined by Rachel Markham, Marketing and Fundraising Manager at Charity Link.
Watch now
Beyond the Books Episode 2
05 Feb 2026
Every law firm that handles client money must complete an annual, independent Solicitors Regulation Authority (SRA) audit. Find out what it is, and what it covers.
Learn more
Does Your Law Firm Need an SRA Audit?
03 Feb 2026
Find out how Capital Allowances are changing from 2026 and the impact on business tax relief for plant and machinery investments.
Learn more
Changes to Capital Allowances in 2026
28 Jan 2026
Tax rate changes for dividends, savings, and rental income will be phased in across 2026 and 2027.
Watch now
Dividends, Savings and Property Income Tax Rate changes