Hello everyone! I’m new here.
I wanted to share with you this article.
It looks like expats are paying (very rich) pensions to retirees right now. Once expats will start to retire maybe no money left 🙂
Which are your thoughts on this?
https://today.rtl.lu/news/luxembourg/a/1904778.html
11 comments
I think the important point of the original report and mentioned in the article was “if nothing is done”.
Reserves will continue to increase for at least 5 years. There are many strategies on the table to improve the current situation.
I do feel it’s most likely the big scare before increasing retirement age by a few years.
I think here we are still in a better situation than Germany for example. But unfortunately it shows that it would be wise to save through etfs or other means individually for retirement.
I can assure you not only expats are worried about the state of the money bags…
The correct term for a System that finances current payments with future “investors” would be “Ponzi scheme” in other circumstances.
It’s a problem all pension funds I am aware of have, they need population growth and wellbeing to increase but average life expectancy to remain constant to not collapse… In theory you should be paid from your own money increased through investments but that never works out in the end
Transition to a defined co tribution pension scheme may solve the problem, e.g. Iceland, Nordics or the Netherlands
Expats? Surely you mean immigrants.
The solution here is to increase pension contributions, increase the 40 year term, or cut payouts. All of these are politically unpopular and therefore whoever is in power avoids doing it, as they will then likely not be in power by the next election.
Similar thing with the housing market, in Luxembourg the government will only ever look at politically popular policies (electric car subsidies) and not at unpopular ones (increasing tax on non-electric cars)
it’s amusing that you guys seem to think that anyone’s got a vested interest in somehow making it possible for this to last long enough for you to benefit from it. it also used to be possible to buy a house with a single income. it didn’t take long for boomers to convince y’all it’s better when you can’t. i doubt it will take too much to convince you that pensions are bad.
Exactly the year of my retirement. Who would have thought.🤣
OP, it’s “young people” rather than expats
Same problem as everywhere else. Not sure why you think expats are particularly the topic of your post?
Henri will pay for all, no worries