In a Europe where pensions vary considerably among countries, there is a state that has managed to position themselves above other outstanding members such as Switzerland or Denmark in issues of economic benefits for retirees. This is Luxembourg, which stands out for offering its largest monthly income significantly higher than the European average. While in many countries pensioners must adjust their budget, in the ‘great duchy’ the situation is remarkably different.
In fact, it is the public finances of each country that feel the basis of the social public policies that are applied and, consequently, that serve to set the income for retirement. According to Eurostat and the OECD, retirement pensions in Europe vary considerably, both in nominal terms and in purchasing power standards (EPA).
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The average pension in Luxembourg reaches 2,650 euros per month
Taking these variations into account and taking out an average of all countries, retired Europeans receive a medium pay for pension about 1,344 euros per month, with data from 2023. This is the income that guarantees the purchasing power of those over 65, which is the average age to stop working.
Among the Member States, the ‘Europe of the 27’, the most privileged position corresponds to the citizens of Luxembourg. Its pension reaches 2,650 euros per month, while those who spend the most troubles are those of Bulgaria, with 226 euros per month. Its average figure includes all pension modalities, from ordinary retirement to disability or widowhood.
Although the most broken data through the official site of the Luxembourg government, Guichetshow several differences. For example, that those who have worked exclusively in the country receive an average pension of 3,570 euros, a figure that can vary according to gender and the quotation years.
While on the other hand, retirees who have developed their career in a mixed manner, combining jobs in Luxembourg and another country, receive an average pension of 1,614.50 euros, although they often complement this income with pensions from other states.
Spain reached an average retirement pension in June 1,505.9 euros per month
The figure denies the myth that Swiss are the retired ones that live best in Europe. Although Switzerland maintains a robust and generous system, the average pension stands at 2,137 euros per month, clearly below the Luxembourg level.
For Norway, and as in the Swiss case, its average pension stands at 2,438 euros per month. This is explained by a solid social security system and by a high standard of living, which is largely based on income from energy resources.
Below Luxembourg and Norway are France, Italy or Belgium, all of them with medium -ups superior to Spanish, which then had numbers of 1,445.75 euros. Anyway, according to the latest June 2025 of the Ministry of Inclusion, Social Security and Migration, the average retirement pension in Spain placed at 1,505.9 euros per month.
Bulgarian, Poland, Hungary and other countries in Eastern Europe have weaker economies
The situation is even more evident in the economies of Eastern Europe. And not only in Bulgaria, where the medium pension barely reaches 226 euros, but in other countries such as Poland, Hungary, Estonia or Slovenia retirees receive significantly lower quantities that in the west of the continent. These differences not only show the disparity between pension systems, but also the gap in income and levels of productivity between the different European regions.
The reason for this is especially because countries such as Luxembourg or Sweden have high salary levels, so their contribution bases are able to support major pensions. On the other hand, in states with weaker economies or with more precarious jobs, the possibilities of offering similar pensions are much lower.