UK state pension lags behind other nations in payouts

The state pension often serves as the bedrock of retirement income in the UK, however, it is often argued by some that the amount is not enough. Currently, the full basic state pension pays out £141.85 per week, and the full new state pension £185.15 weekly.Some may get less than the full new state pension if they were contracted out before April 6, 2016.But how does the UK state pension compare against other nations? Alice Guy, personal finance expert at interactive investor, said: ‘UK pensioners are getting the fuzzy end of the lollipop when it comes to their state pension and the UK actually has one of the worst figures for pensioner poverty in Europe.’The UK state pension is two-tier system. There’s a safety-net flat-rate pension designed to keep pensioners out of poverty, but not give them a massive income. This is supplemented by the private pension system.READ MORE: Couples face 40% inheritance tax hit due to ‘common myth’ State pension: UK pension lags behind payouts of other nations (Image: Getty)’In contrast, many countries have a much broader state pension system where the amount you get is based on your contributions. ‘In those countries, state pension contributions are much higher and there’s less reliance on private pensions.’The organisation suggests many countries have a more generous state pension system based on average earnings.Another issue highlighted by interactive investor is the matter of pensioner poverty – with older people struggling with their finances.DON’T MISSPensioners with arthritis could get up to £369 per month [INSIGHT]Pensioners ‘cut back on medicine and food’ as costs soar [LATEST]Build a ‘financial buffer’ to ‘safeguard’ against costs, savers told [ANALYSIS] State Pension UK: What is State Pension? (Image: EXPRESS)She added: ‘It’s only with a combination of the state pension and workplace or private pension saving that we can ensure we have enough for a comfortable retirement.’A DWP spokesperson told Express.co.uk: ‘This year we will spend over £110billion on the state pension and the full yearly amount of the basic state pension now over £2,300 higher than in 2010, with 400,000 fewer pensioners in absolute poverty after housing costs in 2020/21 than in 2009/10.’Alongside this, automatic enrolment has succeeded in transforming private pension saving. ‘A record number of Brits are now saving for retirement – more than 10 million workers have been enrolled into a workplace pension since its introduction, with an additional £33 billion saved in 2021 compared to 2012.’It’s not possible to make realistic international comparisons of state pension levels due to differences such as tax and healthcare systems, welfare benefits and access to occupational pensions.’