The research looked at the current state pension in comparison to the average cost of living in the UK and compared this across Europe to establish which country offers the most to retirees.

The UK finished 17th in the Pension Breakeven Index, a fall of one place compared to the previous year’s report and only 9.18 per cent above the pension income breakeven point.

Almond Finance principal financial adviser, Sam Robinson, said: “The UK has a system that is just above the breakeven point which means, at present, there isn’t much room to manoeuvre for those battling the cost of living crisis.

“While it is possible that the UK finds itself among the top half of countries, for how much longer is the question.”

Robinson added that, while the increase in the state pension was “well intended”, it actually works out to be a real-terms pay cut for most pensioners in comparison to last year’s report which saw pensioners have approximately £115 surplus after essentials.

The research also found, in the UK, the state pension pays just £74.40 more than the average cost of living for a pensioner despite a recent increase.

Almond Financial found the maximum UK state pension will pay a total of £884.40 per month to retirees from 2024 and the monthly cost of living for a single person, excluding rent, is £810.40.

Additionally, Robinson advised that those people aged over 66 need to look at other options rather than just relying on the state pension.

“Planning for life after work is crucial and it’s important to seek advice from a pension adviser if you aren’t sure where to start,” he said.

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