Estimate your pension

Discussions on a potential reform of the pension system are currently underway. The last pension reform in 2012 had negative impacts, resulting in a considerable reduction in current and future pensions. So, the answer to further pension cuts is: NO!

OUR SOLUTIONS
FOR A FAIR REFORM

The Chamber of Employees is committed to a fair pension reform!

Made up of lawyers, economists, experts and advisers, the CSL has long addressed the issue of pensions and proposed alternative solutions to ensure an adequate retirement for all. Our aim is to defend the interests of all current and future pensioners.

For us, the solution is to use the existing reserves but also to generate new revenues, for example:

  • by increasing the contribution rate by 3 points, from 24% to 27% (equivalent to only a 1% increase per employee),
  • by removing the cap on contributions,
  • by introducing a solidarity pension contribution that exempts low incomes,
  • or by reintroducing a wealth tax on individuals and by increasing the wealth tax for companies/corporations.

For more information:

How does the pension system work General pension insurance scheme - Employee contribution General pension insurance scheme - ESC opinion General pension insurance scheme - Publication Strengthening statutory pensions for all - Note The pension system - Improof articles Did you know ?

PROTECTING OUR RIGHTS

The current minimum pension of €2,350 gross is below the poverty line.

We cannot accept a further decline in pensions when the increase in the cost of living, combined with the effects of the 2012 pension reform, will already automatically lead to a rise in the poverty rate. We believe it is urgent to guarantee a decent standard of living for those who have dedicated their lives to work. It's time to act to ensure the dignity of our elderly, future and current pensioners.

In 2025, the minimum pension for an insured person with a career of at least 40 years will be €2,350 gross per month. However, as early as 2023, anyone with a net income of less than €2,540/month was considered at risk of poverty. With inflation, this threshold is probably higher today. This means that many pensioners, despite a full career, live on a gross income below the net income needed for a secure, decent life.

Since
2012,
the risk of poverty among pensioners has doubled.

LET'S ENSURE A FUTURE WITHOUT INSECURITY

It is important to preserve/protect and even strengthen the public, social and solidarity-based pension system today. The CSL is firmly opposed to the privatization of the pension system because it is based on the ideology that the more capital you have, the better chance you have to receive a decent pension.

This solution does not consider people with modest incomes who cannot afford to invest in a private pension fund, which is also a scheme that benefits insurers more than insured persons. Luxembourg is a country whose system is intended to be social and based on solidarity, so let us not allow the decisions of a few to jeopardize the future of many others.

18%
of residents receive a pension of less than
€2,000gross per month.

STRENGTHENING THE PENSION SYSTEM

With 27 billion euros in its reserve, the Luxembourg pension fund is doing great!

With an ageing population, it's only natural that pension expenditures should rise. However, despite what we are led to believe, this trend is not a problem: due to economic growth, higher pension expenditures do not imply less funding for other purposes.

With 27 billion euros in its reserve, the Luxembourg pension fund is doing great!

With an ageing population, it's only natural that pension expenditures should rise. However, despite what we are led to believe, this trend is not a problem: due to economic growth, higher pension expenditures do not imply less funding for other purposes.

At €27 billion, Luxembourg's pension fund is in good health.

It should also be noted that all long-term projections concerning the financial situation/sustainability? of the pension scheme have proved to be wrong.

The pension fund currently has reserves of more than 27 billion euros, which would allow covering pensions for 4.3 years without any additional contributions (compared with 1.6 months for Germany and 6 months for France). And if funding problems were to arise - it is essential to acquire additional financial resources rather than reduce pensions - this would only strengthen the system.

LET'S RISE TO THE CHALLENGE FOR OUR CHILDREN, OUR PARENTS, AND OURSELVES

The 2012 pension reform cannot be ignored: the degradation introduced by this reform is already enormous and penalizes today's young people in particular. In fact, the 2012 reform considerably lowered the pension level for all future pensioners, by downgrading the pension calculation formula, abolishing the end-of-year allowance and the end of adjustment of pensions in line with changes in the cost of living.

For information, the 2012 reform means that an average employee will lose between €380,000 and €420,000 gross over a 25-year pension period (this represents a loss of around €650 per month at the beginning of the pension, rising to around €2,200 per month). Let's not accept any further reductions!

The 2012 reform will already reduce the average employee's pension by at least €380,000.

LET'S OPEN THE DEBATE, TOGETHER

Only 1.20%
of pensions exceed
€8,000

We are committed to fostering an objective debate by fighting the misrepresentations that are circulating about the pension system. Have we not all heard of Luxembourg's exorbitant pensions? Well, they are extremely rare to the point of being non-existent.
Here's a chart to illustrate it:

8.29%
+€6,000 gross per month
3.81%
+€7,000 gross per month
1.20%
+€8,000 gross per month
0.02%
+€10,000 gross per month

And remember that 18%, or almost one-quarter of residents, receive a pension of less than €2,000 gross per month.

LET'S MAKE THE SYSTEM FAIRER

80% of minimum pension recipients are women and on average, women's pensions are 36% lower than men's. In European comparison, the average is 25%. Luxembourg is the country with the greatest inequality in this regard, after Malta and the Netherlands.

Women's pensions are
36%
lower than men's.

80%
of minimum pension recipients are women.

This gap even increases to 41% for women who have worked exclusively in Luxembourg.

A further reduction in pensions would exponentially increase this inequality and run counter to Luxembourg's and the European Union's policy of combating inequality.

myth & TRUTH