The Chamber of Employees has expressed concerns that the average cost of a retirement home exceeds the minimum monthly pension payments.
The Chamber of Employees has published a long document in which it details the capacities and costs of Luxembourgish retirement homes for the elderly.
Three types of accommodation exist in the Grand Duchy: CIPA (integrated centres for the elderly) are the most common, with 3,925 beds in 2019, followed by care homes (2,387 beds) and housing units (775).
The former provide a service of accommodation, hospitality, care and recreation, while the latter offer more hours of help and care. Framed housing allows independent and able seniors to rent or buy housing with less assistance.
PRICES UP TO €5,000...
In 2018, the Ministry of Family Affairs estimated the average price for a single room in an integrated centre for the elderly to be €2,452. The average room in a care home costs around €2,706 per month, while a place in a housing unit is estimated to be €1,718 per month.
The cost can vary depending on available services. According to the Chamber of Employees, institutions freely set prices relating to the size of the available housing, the quality, sanitation and care staff linked to the room. Some institutions can charge up to €5,000 per month for rooms at the top end of the scale.
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These costs far exceed the minimal pension payments in Luxembourg, which, in January 2019, came to €1,841.51 for a 40-year employment in the Grand Duchy. The cost of retirement homes also exceeds the average amount of the Luxembourg pension, which is €2,214.21 for men and €1,580.98 for women. These figures correspond to mixed careers, with a period of activity abroad, and without taking into account any pension supplements or income from renting or selling a home. Those who completed their entire professional career in Luxembourg have higher pensions: €3,600.06 on average for men and €2,212.07 for women in 2018.
According to its calculations, the Chamber of Employees estimated that 76% of women resident in Luxembourg cannot afford a room for €2,452 in CIPA, while 79% do not have sufficient financial means to afford a place in nursing homes (€2,706). 44% could not pay the €1,718 required for independent assisted housing. Men are somewhat better off, although 22% of residents cannot afford a room in an integrated centre, 28% cannot afford to live in a care home and 9% cannot afford to live alone in assisted housing.