Following a recent article :

https://www.virgule.lu/luxembourg/les-pensions-des-fonctionnaires-communaux-menacent-de-faire-exploser-les-budgets/7685536.html

It looks Luxembourg starts facing issues in some pension funds in terms of the deficits . Long story short , at some point gov needs to cut the pensions or increase the pension age threshold or both . The current system is leading to a deficit catastrophe . Same happened in a number of countries within Europe where at the end the gov took measures such reduced pension , or increase the retirement age .
Any view?

by Southern-Meet-6274

4 comments

  1. I think with all the housing costs, lux wouldn’t be attractive enough to working age population and continue to leave after 3-5 year range so if they fix that scenario then I’d say there’s still hope 

  2. For sure the public servant pensions will have to be cut.

    However, I recall reading somewhere that half of all Luxembourgers are public servants, so it would be political suicide to do so.

  3. It would be sensible to at least increase the retirement age. It would be a matured way to deal with the fact that people now live longer.

  4. This is a small subsystem that is only the tip of the iceberg with 80 million deficit per year. The general system will soon have 1 billion deficit per year consuming all reserves in the next 20-25 years if nothing is done

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