Peaceful Retirement in Europe: Reality or Illusion? How Countries Treat Their Elderly Citizens

From Croatia to the Netherlands and France, the gap between retirement promises and real life reveals how differently Europe ages

The picture was made by the author with the help of an AI program

For many people, the greatest dream is to reach the European Union and live decently from their work in a democratic country such as Germany or even Croatia.

But is life in Europe truly as idyllic as it appears to those who do not live here?

Unfortunately, the situation in some European countries is far from ideal. Certain groups in society, especially pensioners, live in economic insecurity, in poor conditions, and sometimes even below the poverty line.

Imagine working your entire life diligently, regularly paying into the state pension fund, believing that one day, when retirement finally arrives, you will enjoy the fruits of your labor. But when that day comes, your pension is not even enough to cover your basic living needs. Instead of traveling the world on cruises with your partner, you are forced, as a pensioner, to work part-time or, even worse, search through garbage containers looking for refundable PET bottles and discarded food.

Sadly, this is not a story from a developing country. This is a reality happening in many European Union states, including my own country, Croatia.

Although politicians try to present the situation as far better than it is, scenes of elderly people searching through containers and collecting plastic bottles worth only a few cents are becoming more and more common among the retired population.

In this article, we go behind the statistics and numbers to explore how, despite European pension systems formally promising security in old age, the everyday reality of pensioners across Europe reveals enormous differences in dignity of life, access to resources, and the sense of fairness within the social contract.

The Pension System and the Promise of a Secure Old Age

Pension systems across Europe were designed as one of the pillars of social protection, to enable older people to live with dignity after finishing their working careers.

This idea is clearly described by the European Commission through the European Pillar of Social Rights, which in Principle 15 states that every worker and self-employed person has the right to a pension proportionate to their contributions and sufficient to ensure an adequate income, as well as equal opportunities to acquire pension rights without discrimination between men and women.

Formally, this means that states are obliged to ensure fair protection for older people in retirement. In practice, however, reality looks very different. The differences between countries are vast, and a significant number of pensioners in some EU states live at or below the poverty line.

In many countries, average pensions do not keep pace with rising costs of food, housing, medicine, and energy. Pensioners are often forced to work additional jobs, lower their living standards, or seek additional assistance. Particularly vulnerable are women who, due to lower wages and interrupted work histories, frequently end up with significantly lower pensions than men.

Examples of Pensioners’ Situations in Croatia, France, and the Netherlands

Croatia

In Croatia, the pension system is formally well structured on paper and backed by solid regulation, but in reality, many pensioners struggle to live on their income. According to the Mercer CFA Global Pension Index, Croatia ranks around the middle globally, yet the situation on the ground is far from ideal.

The ancient Roman arena located in Pula, Croatia

Average pensions are among the lowest in the EU, at roughly €630 per month in comparative overviews, far below Western European averages that exceed €1,400. The average working career is about 32 years, relatively short, which limits contribution records and final pension amounts. The worker-to-pensioner ratio, around 1.29 to 1, further strains the system.

Roughly 415,000 pensioners receive less than €400 per month, and there are cases of pensions below €70. With such income, many elderly people struggle to cover utilities, food, and basic living costs. The risk of poverty for people over 65 is estimated at around 37 percent, and for those living alone, about 61 percent.

Croatian pensioners often rely on improvisation and small survival strategies to get through the month.

France

In France, the pension system is complex and long-standing. It is financed through mandatory social contributions paid by both employers and employees, and the state allocates a significant share of GDP—around 13 to 14 percent—to pensions, among the highest in the OECD.

Average pensions are around €1,450 per month, much higher than in Croatia and closer to Western European standards. However, the system is under pressure from demographic aging, long-term expenditures, and reforms. Recent reforms raised the statutory retirement age (from 62 to 64) and increased the number of contribution years required for a full pension, triggering strong public protests.

The Eiffel Tower in Paris, France

France strives for a socially fair and solidaristic system, but it faces serious fiscal challenges. The ratio of contributors to retirees is low and similar to Croatia’s, raising concerns about long-term sustainability.

The Netherlands

The system in the Netherlands is often cited as one of the most stable and effective in the world. It combines a state pension, occupational pensions, and private savings.

At its core is the Algemene Ouderdomswet (AOW). Every resident reaching retirement age is entitled to a state pension, regardless of employment history, with the amount depending on years insured in the country.

Amsterdam in the Netherlands

This is complemented by strong employer-based pension funds and private savings (the second and third pillars). As a result, the average retiree often enjoys a far higher standard of living than in Croatia. Recent figures indicate a net AOW payment for a single person of around €1,550 per month, while total pension income across pillars often exceeds €3,000 monthly.

The Netherlands also has some of the largest pension fund assets in Europe and high participation of older adults in the workforce, which further stabilizes the system.

How Countries Address Pensioner Poverty

Many countries implement additional safety nets known as social or minimum pensions, designed for those with insufficient contribution records. Eligibility is usually based on income and asset testing rather than prior contributions.

Countries such as Austria, Belgium, Bulgaria, Estonia, Finland, and France operate such schemes with varying thresholds and amounts.

In Croatia, a national benefit for the elderly with low income exists, but strict thresholds (around €300 per person) limit its real impact.

In the United Kingdom, the state pension is among the least generous in the G7 and is intended as a basic foundation, with the expectation that citizens will supplement it through private and occupational savings.

France provides a minimum old-age benefit for people over 65 whose total income falls below certain limits, ensuring that even those with little or no work history receive support.

Scandinavian countries, alongside the Netherlands, combine state pensions with mandatory occupational schemes and strong long-term care systems, creating greater security and a more accessible standard of living for retirees.

Conclusion

As we have seen, the situation of pensioners across Europe ranges from very difficult to almost ideal. Each country struggles with this challenge in its own way.

Perhaps more countries should follow the examples set by Scandinavia and the Netherlands to ensure a dignified old age for those who have spent decades contributing to society.

All of us, even if we are young and energetic today, will one day depend on pensions and state support. What we fight for now in terms of better conditions, fairer pensions, and greater security will one day become our own reality.