Only Georgia is worse: to what extent do state pensions cover living expenses in Ukraine and Europe

Author

Valery Moisieiev

In early March, Ukraine indexed pensions by 12.1%, covering about 10 million people. Minimum pensions for 65-year-olds with full service increased to UAH 3,459 per month, and for people over 80 years old — to UAH 4,213. The maximum pension was increased to UAH 25,950. looked into how these pensions relate to the standard of living of Ukrainians, and how pensions in Ukraine look against the background of other European countries.

Pensions and standard of living in Ukraine

According to the Pension Fund, at the end of 2025, the average pension in Ukraine was UAH 6,544. Over the year, its size increased by 13%. At the same time, 63 thousand pensioners (out of a total of 10.17 million) received payments below the subsistence minimum, and 261 thousand — at the level of such a minimum.

From January 1, 2026, a new subsistence minimum (general indicator) of UAH 3,209 has been established in Ukraine. For able-bodied persons, it is UAH 3,328. The size of the subsistence minimum, which is established annually in the law on the state budget, has long been conditional, since it is impossible to live on this money.

For example, the Visit Ukraine website states that the cost of living in Ukraine in 2025–2026 remains one of the lowest in Europe, while comfortable accommodation (with rent) in Kyiv costs about $800–$1,500 (approximately UAH 32.8–61.5 thousand) per month. The amount of UAH 18–22 thousand covers only basic needs.

Moorepay, a British payroll and human resources company, analyzed the ratio of the cost of living (excluding rent) to the size of state pensions in 39 European countries. According to researchers, in Ukraine, the pension is 29% of the cost of living. The same figure is in Albania, and only Georgia is lower — 22%.

What is the level of state pensions in Europe

The share of state pensions in the cost of living varies significantly across European countries. In Northern and Western Europe, pensions often cover or exceed basic expenses, while in Eastern Europe and the Balkans they often do not cover them.

According to Moorepay, in 20 out of 39 European countries, state pensions do not cover living expenses even excluding rent. The coverage level ranges from 22% in Georgia to 225% in Luxembourg (as of the end of October 2025).

In Luxembourg, the average state pension is €28,790 per year, while the cost of living is €12,791.

In Italy (210%) and Finland (208%), pensions are more than double the cost of living. In Spain (199%) and Denmark (189%), the figure is also close to this level.

What part of the cost of living is covered by state pensions, %

In six countries, the coverage rate is between 100% and 150%. These are Switzerland (131%), Ireland (126%), the United Kingdom (120%), Poland (112%), the Czech Republic (108%) and Greece (103%).

In 20 countries, pension provision is insufficient. In some cases, it covers more than 80% of living costs. These are Slovenia (95%), Slovakia (94%), Estonia (91%), Portugal (90%), Montenegro (89%), Lithuania (85%), Croatia (82%) and Hungary (81%).

There are clear geographical differences.

In Northern and Western Europe, including the Scandinavian countries, pensions often cover or exceed basic living expenses.

In Central Europe, pensions provide a moderate level of coverage. In Eastern Europe and the Balkans, pensions usually cover only a portion of living expenses.