The working population pays the current pensions with its contributions and “a little something is saved as reserves”. In an ideal world, this is how the pension system works, according to Alain Reuter.
Contributions currently account for 24%. 22% would already be enough at the moment. But the situation will change.
In 2027, this 24% will no longer be enough to pay the pensions. The Pension Fund’s reserves will last until 2032, after which a reform will have to be implemented.
A reform must therefore be carried out in the coming years, Reuter stressed. The CNAP President warned that there is a risk that future generations will be worse off in terms of pensions.
Discussions about potential reforms of Luxembourg’s pension system should be held in the Economic and Social Council (CES), according to Reuter.
The president of the CNAP also said that the tax credit, which partially compensates for the postponed wage indexation, will be paid twice in August. As pensions are always paid in advance, the July tax credit will be paid out with the August pension.
