The state pension is arguably one of the most emotionally charged topics in politics.
Millions of French citizens took to the streets when President Macron increased the state pension age from 62 to 64, while, in Italy, parliament had to be suspended after a fight broke out during a debate about pension reform in 2011.
Yet, as our own Fidelity research suggests, those two nations still have arguably some of the most generous state pensions among developed countries. And while it is impossible to draw exact comparisons, on some measures, the UK state pension could be considered one of the least generous in the G7.
How generous are state pensions across the G7?
Comparing the generosity of different countries’ state pension systems is no easy thing. Each system works in a slightly different way, with variations in what you need to qualify for a full state pension, how increases to the state pension amount are decided, how the state pension interacts with other forms of state support for older people and many other factors.
However, there are metrics that offer some insights. We looked at:
- The gross replacement rate for an average worker
- This is the level of state pension received relative to earnings when working. A gross replacement rate of 60% would mean your state pension covers 60% of an average working salary. Both numbers are before tax. It is based on an average worker in each country with a full career from age 22.
- The average number of years a person can expect to receive the state pension
- We calculated this by comparing the age at which someone can receive the full state pension to average life expectancy for someone age 65. State pension age was calculated based on someone born in the year 1960.
- Government spending on old-age pensions as a percentage of Gross Domestic Product (GDP)
We compared these metrics across G7 countries and found significant differences in their state pensions.
Country
Gross replacement rate (%)
State pension age (for someone born in 1960 to receive full state pension)*
Average female life expectancy (at age 65)
Expected number of years receiving state pension
Government spending on old-age pensions as a percentage of GDP (%)
Canada
37
65
87.2
22.2
4.7
France
58
62
88.6
26.6
12
Germany
44
66.3
86.2
19.9
9.8
Italy
76
67
87.6
20.6
12.8
Japan
32
65
89.4
24.4
8.9
USA
39
67
85.7
18.7
6.6
UK
22
66.3**
86.1
19.8
4.7
Sources: * The age at which you can receive the full state pension without deductions. ** UK state pension age ranges for someone born in 1960 ranges from 66 years to 66 years and nine months depending on birth date. We used the mid-point of the year (July 2) which is 66.3 years (rounded to one decimal place). OECD Pensions at a glance 2023 and ‘Pensions: International comparisons’ research briefing from House of Commons Library.
Who has the best and worst replacement rates?
Italy offers by far the best replacement rate. An average person can expect to receive around three-quarters (76%) of their working salary in retirement via the state pension.
The UK, by contrast, has the worst. British retirees receive less than a quarter of their pre-retirement salary as state pension.
These gaps reflect the fact that countries put differing emphases on whose responsibility it is to ensure people enjoy a comfortable retirement.
In the UK, the onus on saving for retirement is very much on the individual. Workers are expected to contribute to a workplace pension, which will fund the bulk of their retirement, and the state pension is generally seen as a top-up to support lower earners in particular. Whereas in countries such as France and Italy, retirees rely primarily on public pensions.
According to the Organisation for Economic Co-operation and Development (OECD), around 40% of older people’s incomes in the UK come from the state on average, compared with more than 70% in France and Italy.1
How many years could you expect to receive a state pension?
Another measure of generosity is the number of years you might expect to receive the state pension. Here too there are big differences – from almost 27 years in France to less than 19 in the US.
Some of these differences come down to lower retirement ages in certain countries. In France, for example, someone born in 1960 could start receiving a full state pension as early as 62, while in Italy and the US they’d have to wait five years longer.
But life expectancy is a factor too. Long life expectancy in Japan means that people can expect to enjoy more than 24 years in receipt of a full state pension.
The UK falls towards the bottom of the pack. Someone born in 1960 can expect to live another 20 years on average after they start receiving a state pension.
However, a generous state pension can become meaningless if you’re not healthy enough to make the most of it. Someone retiring at 62 might go on to live the same number of years as someone retiring at 67, but they are likely to enjoy more of those years in good health.
We also calculated how many years people might expect to receive the state pension while in good health. Here, again, France and Japan came out top. The US and UK fell towards the bottom of the table. UK citizens are only likely to enjoy around 11 healthy years in receipt of their state pension – five less than in France.
Country
State pension age (for someone born in 1960 to receive full state pension)
Average healthy life expectancy (at age 60)
Expected number of healthy years receiving state pension
Canada
65
78.5
13.5
France
62
78.6
16.6
Germany
66.3
77.3
11
Italy
67
78.4
11.4
Japan
65
80.4
15.4
USA
67
75.7
8.7
UK
66.3
77.5
11.2
Source: World Health Organisation, 2025
As people live longer, the cost of paying state pensions is becoming unsustainable. Many governments have been trying to reduce the cost by pushing back the age at which people can start to claim the state pension.
However, this is usually a very unpopular move, especially if healthy life expectancy does not increase in line with overall life expectancy as it will mean people enjoy fewer healthy years while receiving their state pension.
There are also big socio-economic differences in life expectancy. Someone living in a deprived area is likely to live less long than someone in a privileged area and is likely to enjoy fewer healthy years over their lifetime.2
In the UK, people living in the least deprived areas enjoy on average 19 extra years of healthy life expectancy than those in the most deprived areas, according to The Health Foundation.
How does the UK measure up overall?
We ranked each of the G7 countries from 1 to 7 based on how they performed in each of the three categories (gross replacement rate; expected number of years receiving state pension; and government spending on state pensions as a percentage of GDP).
We then calculated an average ranking over the three categories.
The UK performed worst of all the G7 nations across the three categories, coming last on replacement rates and joint-last on state pension spending. France performed best, closely followed by Italy.
Country
Gross replacement rate (%)
Expected number of years receiving state pension
Government spending on old-age pensions as a percentage of GDP (%)
Average ranking
Canada
5
3
6.5
4.8
France
2
1
2
1.7
Germany
3
5
3
3.7
Italy
1
4
1
2
Japan
6
2
4
4
USA
4
7
5
5.3
UK
7
6
6.5
6.5
Source: Fidelity International
It’s important to note, though, that these systems are all very different and we should be cautious about drawing direct parallels.
What’s more, one crucial factor these metrics do not consider is how much people must contribute in each country to the state pension.
In the UK, for example, the state pension of today’s retirees is primarily funded via the National Insurance contributions of today’s working adults. Most workers will be paying 8% of their earnings over £12,570 and 2% on earnings over £50,270.
Whereas in Italy, employees pay around 9-11% of their salary towards social security (which cover pensions, maternity, sickness and other benefits).3
Ultimately, the key thing UK savers need to remember is that they are unlikely to be able to live off the state pension alone.
Source:
1 OECD Pensions at a glance 2023, Figure 7.1
2 The Health Foundation, Inequalities in life expectancy and healthy life expectancy, 17 February 2025
3 Taxing.it, Social Security contributions, October 2025
