As seniors around the world grapple with the high cost of living, an important question to consider is whether the country you live in offers adequate retirement or pension to cover those costs. With recent news about proposed cuts to Social Security under the Trump administration, how does the U.S. compare on a global scale given the uncertainty?
The Institute for Women’s Policy Research provides additional context to the overall state of retirement in the U.S., by pointing to the gender wage gap impacting women’s retirement status even further. According to their data, the wage gap during career years opens up a retirement income gap, which then leaved women aged 65+ at higher risk of poverty than men. It is therefore crucial to close the gender wage gap in order for women to comfortably move into retirement.
A new international study suggests that while U.S. retirees fare better than many countries, Social Security still trails much of Europe when it comes to covering the cost of living.
New research from HR and payroll specialists Moorepay compared average state pensions across 85 countries, measuring how well each one covers local living costs. The U.S. ranks 13th globally, with Social Security covering 163.46% of basic living costs.
While that places the U.S. ahead of the UK and several other developed economies, it still falls behind countries such as Italy, Germany, and the Nordics – raising questions about long-term retirement adequacy as cost-of-living pressures persist.
To compare pension rates against the local cost of living around the world, Moorepay
sourced reputable reports to find the average state pension rates in each country for a single
person, urban, just retired and without capital income. Then, they used Numbeo
cost-of-living values for each country to calculate the percentage of local living costs covered
by each pension on average.
Key findings for the U.S.:
- Ranked 13th globally for how much Social Security covers basic living costs.
- 163.46% – the share of average living costs covered by U.S. Social Security benefits.
- U.S. retirees have an average annual surplus of $9,108 after basic expenses – lower than many European peers.
- The average U.S. state pension is worth $23,460 per year, ranking 15th globally by overall value.
- Countries including Italy, Germany, Denmark, Finland, and Luxembourg provide larger surpluses relative to living costs.
The findings arrive amid ongoing debate around the future of Social Security, benefit adequacy, and how retirees will cope with rising housing, healthcare, and everyday costs.
You can see more of the global findings over at the MoorePay website, and browse our articles about money and finance to see how women in the U.S. are workin to change the status quo for their own financial futures.
