The UK provides one the “least generous” state pensions in Europe, according to new data by the International Longevity Centre.

New figures from the ILC show the £113.10 UK state pension only amounts to a third of the average pre-retirement income, compared to Greece, where the gross replacement rate is around 100 per cent. The EU is averaged at around half.

Spain, Austria, Cyprus and Italy closely follow Greece with the highest gross replacement rates, while Ireland, Denmark, Poland and Estonia provide the lowest replacement rates, which all sit just below 30 per cent.

ILC spokesperson Helen Creighton said the government aspires for the UK to be the “best place in the world to grow old”, but the new research shows it has “got a lot to do to top the European league”.

“Government is right to aspire to be the best. But to achieve that we must look at and learn lessons from our European colleagues,” Creighton said.

Despite this research, the UK pensions system was last month awarded a ‘B’ grade for its pension system by the Melbourne Mercer Global Pensions Index and Greece.

The index placed the UK as the 9th best pension system in the world, the same position it occupied in last year's index.

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