Moorepay study: State pension in Georgia covers just 22% of basic expenses

JAMnews

Tbilisi

Study on pensions in Georgia

In 20 of 39 European countries, pensions do not cover basic living costs, with Georgia ranking at the bottom of the list — state pensions there cover just 22% of essential expenses.

These are the findings of a new study by the UK-based company Moorepay, which specialises in payroll and HR solutions. The results were published by Euronews.

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Pensions and real costs: what the study shows

The study is based on data available as of late October 2025 and assesses whether state pensions are sufficient to cover basic day-to-day expenses. It considers spending on food, transport, utilities and other essentials, but does not include rent.

Moorepay compiled data on average pension levels, while cost-of-living estimates were drawn from Numbeo, a database reflecting average prices across countries.

The findings highlight stark inequality: in 20 out of 39 European countries, pensions do not cover even minimum expenses.

Comfort in Western Europe

According to the study, the strongest social protection systems are found in Western and Northern Europe, where pensions not only cover basic needs but significantly exceed them.

Top-performing countries include:

Luxembourg – 225%
Italy – 210%
Finland – 208%
Spain – 199%
Denmark – 189%
Iceland – 179%
Norway – 178%
Germany – 176%
Belgium – 170%
Austria – 165%
France – 160%
Netherlands – 159%
Sweden – 158%
Switzerland – 131%
Ireland – 126%
United Kingdom – 120%
Poland – 112%
Czech Republic – 108%
Greece – 103%

In these countries, pensioners can theoretically not only meet their basic needs but also maintain a financial buffer — a key indicator of social wellbeing.

The reality in Eastern Europe

The situation is markedly different in Eastern and South-Eastern Europe, where pensions often cover only part of basic expenses.

The figures for these countries are as follows:

Slovenia – 95%
Slovakia – 94%
Estonia – 91%
Portugal – 90%
Montenegro – 89%
Lithuania – 85%
Croatia – 82%
Hungary – 81%
Bulgaria – 78%
Romania – 73%
Serbia – 68%
Latvia – 65%
Turkey – 64%
North Macedonia – 61%
Cyprus – 58%
Bosnia and Herzegovina – 53%
Moldova – 42%
Ukraine – 29%
Albania – 29%
Georgia – 22%

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Georgia at the bottom of the list

According to the study, Georgia’s state pension covers just 22% of minimum living costs, although in reality the situation is more complex than the statistics suggest.

The country’s current old-age pension system is unified and fixed, meaning it is not linked to an individual’s work history or to actual inflation levels. As a result, pensions often lag behind rising prices.

This is particularly evident in categories essential for everyday life:

food — especially due to rising prices of imported goods;
medicines — given the high prevalence of chronic illnesses;
utility bills — particularly during the heating season;
transport.

Although the study does not include rental costs, in practice this is a decisive factor for many, especially those without their own housing.

One of the main survival mechanisms for pensioners in Georgia is family support. Many rely on financial assistance from children or other relatives, effectively creating an informal social safety net.

This trend is especially common in the regions, where job opportunities are limited and pensions are often the only stable source of income.