How Does the UK State Pension Stack Up Against Global Pensions?

However, there are two key issues to consider.

First, this is a matter of political choice, and the UK opts to devote larger amounts to areas such as universal healthcare.

Second, with ageing populations, the OECD estimates that pension requirements may rise sharply in many countries by 2060, with the exceptions largely being nations that are making changes.

The UK’s projected pension spending may rise less under the revised triple lock system being introduced by Andy Burnham, but this could still mean higher borrowing.

Currently, £1 of every £13 the UK government spends goes toward interest on existing debt. Countries with more generous pensions, such as Italy, have faced pressure to reform.

So, in many respects, with auto-enrolment into workplace pensions, the UK appears to be ahead of the curve in requiring universal privately funded pensions for workers. But that system raises another issue: the gender pension gap.

The gender pension gap is the difference between the average pension income of men and women aged 65 and over, expressed as a percentage of men’s average pension income.

It found that the typical gap in most wealthy countries is around 22.8% in favour of men.

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