RTL Today - Numbers revealed: How much do the retirees of Luxembourg earn each month?

Pressured by catastrophic projections of its pension system, the Luxembourgish government is envisaging a potential pension reform.

In order to fully understand what is at stake for the approximately 500,000 workers and 216,000 retirees in the Grand Duchy, let's take a look at the amount they receive each month.

Will it be a foundational reform or only a few adjustments? For several months, the citizens of Luxembourg have been waiting to hear what the debate launched by the government will lead to.

The tumultuous discussions, which began in October, will enter into their final phase in Spring with a consultation debate held at the Chamber of Deputies in mid-March.

Although the trade unions and the Chamber of Employees highlight the amount saved in the pension fund, declaring that the projections are too pessimistic, the General Inspectorate of Social Security (IGSS) has suggested that the reserves amounting to €27 billion will be depleted sooner than expected, according to its latest projections.

These facts are enough to inspire a more far-reaching reform of the pension system. One option could be to extend the duration of careers, and another could be to modify the monthly payments. But what does the latter actually look like?

According to the 2024 general Social Security report, the average sum of pensions paid in December 2023 came out at €2,398.30. That is the average income including all the pensions available in Luxembourg: old-age pension, early retirement pension, disability pension, survivor's pension, etc...

In fact, and keeping in mind the presence of cross-border workers, the average pension varies depending on the retirees' career paths:

for a career carried out exclusively in Luxembourg, the average pension paid in 2022 stood at €3,569.99 (with considerable gaps between men, who received up to €4,500, and women, whose pension could be less than €3,000).
For a cross-border career, also called "mixed", since only part was carried out in Luxembourg, the average pension paid by the country was €1,614.50 (the people concerned didn't work as long in the Grand Duchy, and generally receive another pension from a second country, which this sum does not take into account).

At this stage of the debate, the government has not yet commented on the possible reform to be implemented, and wishes to hear from the different parties in the country. All actors will come together and discuss future steps at the debate in mid-March.