Britain has the least generous pension system in Europe, according to a study from Aon Consulting which compares the standard state pension with average wages in each European Union member state.

The report’s authors celebrate the fact that modest pensions maximise British companies’ competitive advantage. In “affordability and sustainability”, Britain pulled in third, just after Baltic states Estonia and Latvia.

“The poorer the state pension, the more affordable it becomes”, the report indicates.

It is the gap between early retirement and strong life expectancy which puts Britain, whose pensioners enjoy only 16.6 years of retirement, well ahead of France, with 20.9 years in retirement on average for every worker putting it bottom in sustainability ratings.

Meanwhile, concerns around pensions provision prompted strikes from the East London Bus Group affecting travel across London.

But the Aon report did emphasise that the UK gross state pension is set to increase by nearly 12 per cent over the coming 45 years.

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© Adfero Ltd