America lags global peers as Social Security struggles to cover retirees’ living costs

Social Security remains a financial lifeline for millions of older Americans, helping cover everyday expenses after retirement. While benefit checks increased in 2026 to reflect inflation, many recipients say the extra money still falls short. New global research now shows the U.S. lags behind several other countries in how well pensions cover basic living costs.


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According to a global comparison conducted by HR and payroll specialists at Moorepay, the United States ranks outside the top 10 when it comes to how well Social Security payments cover basic living costs, as per a report by The Express.

In 2026, U.S. beneficiaries received a 2.8% cost-of-living adjustment aimed at offsetting inflation. The increase added roughly $56 to the average monthly check. Even so, many recipients say the added amount has not kept pace with rising prices. Some lawmakers share that concern, with senators introducing a proposal late last year to provide a $200 emergency boost to Social Security payments for six months, though the bill has not passed.

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How well do U.S. Social Security checks cover costs?

Moorepay’s research ranked the United States 13th globally. The study found that Social Security benefits cover about 163.46% of basic living costs for Americans. The average estimated Social Security payment in the U.S. is $2,071, according to the Social Security Administration, as per a report by The Express.

To calculate the rankings, researchers examined pension rates across 85 countries. They considered scenarios involving a single person living in an urban area, retired, and without additional income or capital. Those pension amounts were then compared against local living costs to determine how much of basic expenses each country’s benefits could cover.

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Which countries offer the strongest pension coverage?

The study showed that several countries far exceed the U.S. in how much their pensions cover living costs. Kuwait ranked first, with pensions covering more than 566% of basic expenses. Bahrain followed at 253%, while Luxembourg, Italy, and Finland also ranked high, each covering more than double the average cost of living.

Other countries rounding out the top 10 included Spain, Denmark, Iceland, Norway, and Germany, all of which surpassed the U.S. in pension strength relative to living expenses, as per a report by The Express.

Where do pensions fall shortest worldwide?

At the other end of the spectrum, the study highlighted countries where pensions cover only a small fraction of basic living costs. Nepal ranked lowest, with benefits covering just under 8% of expenses. Tajikistan, Jamaica, Armenia, and Botswana also ranked near the bottom, as per a report by The Express.

The findings underscore the wide gap between countries in retirement security and place the U.S. somewhere in the middle, ahead of many nations, but still trailing those where pension systems offer significantly greater financial coverage for retirees.

FAQs

How does the U.S. rank globally for Social Security coverage?
The U.S. ranks 13th worldwide.

How much do U.S. benefits cover basic living costs?
About 163% of basic expenses.