Rhetoric question but why young people around 20-35 do not take this issue seriously when we see the % of people that invest for their pension.

Analysis released on Wednesday 17 December, the International Monetary Fund (IMF) estimates that the Luxembourg pension scheme will enter a new critical phase from 2026: expenditure will exceed contributions on a permanent basis

And do not forget that from on 1 January 2026. The central measure is an increase in the overall pension contribution rate from 24% to 25.5% of gross wage, shared equally between employees, employers and the state. So we will pay more cotisation for a declining system.

For you, what are the solutions to adress this situation?

by lebudgetdumois

10 comments

  1. Young people have no money lol. “Why dont they invest in pensions??” Yeah.. invest what.

  2. However if the govt proposes raising retirement age from 65 to 70 – everyone will be angry and protesting.

  3. > Rhetoric question but why young people around 20-35 do not take this issue seriously when we see the % of people that invest for their pension.

    I guess the reason that young people aren’t investing for pension is because they save to buy housing which you could count as an investment for pension. I mean, even if pensions are going down, when living in your own home and not being renter during a housing crisis you will probably do ok. If you eventually have to go to a retirement home you can sell or rent out your apartment.

    Also on another note, what offends me are the deductions when you invest in a private pension fund. The fees of these are so ridiculously high and they are so poorly managed that you are better off paying the full tax on it and buy funds that do not fall under the regulations. I did a simulation investing in one of these funds 5 years ago, by investing yourself in a similar product, you would already have gotten out double the yield. They basically sell you ETFs trading too lowly and therefore already catching the knife while charging you fees 10 times higher than common on the market. It’s a complete joke and solely an instrument to funnel money into the pockets of fund manages which hold relations to the Conseil d’État. It always bothers me that nobody is doing something against the Conseil d’État whose only purpose it is to ensure that law makers (which generally aren’t very corrupt in LU) never get to vote laws that go agains the financial interests of a handful of powerful individuals which consider the entirety of Luxembourg their property. It’s one of the topics the media isn’t allowed to talk about / has no interest in doing so but so many people so not realize how the construct of the Conseil d’État makes Luxemburg effectively an oligarchy.

  4. Note that this estimation doesn’t take into account the increase in contributions and contribution careers as of next year. That should delay the first deficit to 2029.

    These measures are only delaying the problem, and not addressing it. We can expect a bigger reform in a few years.

  5. Time to import 100 000 migrants to pay pensions

  6. 20-35 don’t think about retirement?

    20-35 don’t think they will be in Luxembourg at retirement?

  7. Young people at that age are unfortunatelly aware they might not get any pension they do not secure themselves.

  8. Pensions will be subsidized by the state and that’s it. Countries which are way poorer and with much poorer society than Luxembourg are doing this since “forever”. Kind of a way it is now in Europe with this demographic.

  10. unfortunately they will need to match expense vs income, so for sure the pension contribution from 8% today will need to go up and in addition the pension age will be adjusted in small steps (as announced already)

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