PM Luc Frieden's proposed pension reform, which would gradually extend the required contribution period, has sparked mixed reactions, ranging from resignation to frustration among workers, though many acknowledge the system's privileges and the inevitability of change.
Luxembourg, long considered by many in Europe as a model for generous wages and early retirement, may soon be forced to abandon part of its enviable reputation. During the State of the Nation address delivered on Tuesday, 13 May, PM Luc Frieden outlined the main elements of a planned pension reform that signals longer working lives for future retirees, prompting mixed reactions and a clear divide between unions and employers.
One of Luxembourg's major draws has been its retirement age policy. Although the legal retirement age is set at 65, many Luxembourgers currently retire around age 61, since 40 years of social security contributions are enough to qualify for a full pension.
That, however, is likely to change. According to Frieden, the reform will include a gradual extension of the required contribution period, by three months per year, over several years – effectively delaying retirement eligibility.
Mixed feelings from the working population
When asked about the announcement in the streets of Luxembourg City by our colleagues from RTL Infos, reactions varied, often depending on whether the respondent was a cross-border worker, foreign resident, or a Luxembourg national.
Among foreign residents and commuters, many seemed resigned to the change. Some pointed to rising life expectancy, saying it was inevitable that people would need to work longer. Others felt the reform was about protecting younger generations, with one worker saying that while no one likes it, "if it has to happen, it has to happen".
Some felt it was part of a broader European trend and therefore unsurprising, noting that most countries were heading in the same direction.
A Belgian employee compared the situation to his home country, where the system is already moving toward a retirement age of 67. He highlighted that while Luxembourg's official retirement age is still lower, most people manage to leave the workforce at 60, showing what he called a significant gap between the two systems.
In contrast, Luxembourgish workers, or those more integrated in the Grand Duchy's labour system, expressed sharper criticism. Some lamented that no one is ever happy to work longer, while others questioned whether the government had truly explored alternative options instead of simply putting more pressure on working people.
Though opinions ranged from bitter to resigned, interviewees generally showed an awareness that change was coming.
As one employee put it, Luxembourg remains privileged in many respects – even if the days of retiring after 40 years of contributions may soon be behind it. Another employee merely accepted the fact, stating with a smile that the news had not ruined her day.
