Luxembourg Struggles with High Poverty Risk: Nearly 1 in 5 at Risk of Poverty

Despite its reputation as one of Europe’s wealthiest nations, Luxembourg continues to grapple with a high poverty risk, with 18.1% of its population at risk, according to the latest household income and living conditions survey conducted in 2024.

While this marks a slight improvement from 18.8% in 2023, the figures underscore persistent socio-economic disparities in the Grand Duchy.

Children under 18 remain particularly vulnerable, with 24.1% at risk of poverty, up from 23.9% in 2023. By contrast, older residents (65+) face a significantly lower poverty risk at just 9.4%.

Luxembourg’s income inequality remains stark. The wealthiest 20% of residents enjoy a standard of living 4.7 times higher than the poorest 20%, although this ratio has slightly improved from 4.8 in 2023.

The Gini coefficient, an indicator of income inequality, also dropped marginally from 30.6% to 30.1%.

A recent report found that housing costs in Luxembourg were a significant driver of inequality and poverty risks. On average, a household spends 36% of its budget on housing, with low incomes households spending as much as 42%.

Luxembourg’s social housing availability – just 5,000 units – lags far behind demand, leaving many vulnerable families unable to compete in the market, the report said.

Luxembourg has among the highest rates of poverty in the EU, Eurostat data revealed last year. Just eight of the EU’s 25 other countries – Slovakia did not provide data – had a higher share of the population deemed as severely deprived or at risk of poverty than Luxembourg, ranging from 32% in Romania to 22.8% in Italy.