Norway has one of the best state pensions in the world. This is how UK compares

How is it to be a pensioner in one of the most generous countries in Europe? Not only is Norway one of the happiest countries in the world, it also offers a state pension nearly double that of the UK. The UK’s new state pension grew by 4.8 per cent to £1,045.63 as of April 2026 thanks to the triple lock but still lags behind other countries in Europe. Norwegian pensioners are entitled to a maximum of £2,163.89 a month, according to data from Almond Financial. Shorts How does the state pension work in Norway and the UK? Andrew Reilly, pension analyst at the Organisation for Economic Co-operation and Development (OECD), said: “The Norwegian system’s got the benefit of having a very high guarantee for people who have very little income at the point of retirement. “In other words it means that the poverty levels in Norway are low.” The relative income poverty rate over-65s in Norway is below 5 per cent compared to 15 per cent in the UK, and Norway’s state pension replaces around 60 per cent of a normal worker’s income, where the UK’s only replaces around 20 per cent. However, commentators are keen to emphasise how different the system and circumstances in the UK and Norway are, making comparison difficult. In Norway the state pension system consists of a basic guaranteed safety net payout for those who have lived in Norway for a required number of years, similar to pension credit in the UK. There is also an income-related portion, with every year of working or residing in Norway building up pension rights based on your total income earned (with no upper earnings ceiling for contributions). For each year you have an income exceeding the average national insurance basic amount, you earn pension points. The more pension points you have, the closer to age 62 you can draw the state pension. The country permits flexibility with early pension withdrawals in line with lifetime earnings. Everyone can start drawing their pension soon after they turn 67 in Norway, with the maximum amount you will receive being £2,163.89, according to the data from Almond Financial. Since 2024, Norway is in the process of linking the statutory retirement age with life expectancy. The statutory retirement age is to be increased by two‑thirds of life expectancy gains. Norway spent 6.5 per cent of GDP on its public pensions, according to the latest available data from the OECD data. Why is the pension higher in Norway? Unlike Norway, the UK’s new state pension does not go up with the size of your salary and is purely based on the number of years you work, typically 35 for the full amount. It is funded by ongoing national insurance contributions and protected by the triple lock, which ensures the state pension rises by the highest of inflation, average wage growth, or 2.5 per cent. The pension age is currently 66 and gradually increasing each month since 6 May, 2026. The UK does not have the flexibility of the Norwegian system, with Norwegians able to take their state pension early if they are eligible. Much of Norway’s relatively generous state pension is funded by oil revenue, giving the country a “unique advantage”, which means that payouts can remain high, according to Reilly. Meanwhile, UK pensions are paid using taxes from today’s workers. This keeps the government payout low and places a greater emphasis on personal savings. Reilly is not the only person to highlight the difficulty of comparing pension systems between countries with very different circumstances. Caroline Abrahams, charity director at Age UK, said: “Comparing the pension arrangements of different countries is complicated, but it is clear that even with the triple lock, the UK state pension system is less generous overall than those in many other similar nations. “The triple lock has undoubtedly made a positive difference to many older people, especially the one in eight with no income apart from the state pension and any benefit entitlements. “Compared to other countries in the EU the full new state pension in the UK is still relatively modest, at a full rate of £12,548 a year.”