Two studies, two methodologies, two conclusions. All of it feeds into a final debate on the relationship between life expectancy and pensions. Unlike the study carried out by the General Inspectorate of Social Security, the one produced by the Chamber of Deputies' scientific unit, commissioned by MP Marc Baum, concludes that there are indeed differences in the life expectancy of pensioners in Luxembourg.
Marc Baum of Déi Lénk (The Left) explained that these differences are very strongly tied to the level of income people have in retirement. The gaps, he added, are considerable, running to as much as five years, with those in the top decile, on very high pensions, living longer than those on very low pensions. That, he said, completely reframes the discussion, if the country is serious about pursuing a future pension reform that is meant to be more socially fair.
Health and Social Security Minister Martine Deprez took a different view. That conclusion, she said, is a bit simplistic. It might, at first sight, look as though the study shows life expectancy is higher for those on a higher pension. But if you asked someone in the street who they think tends to live longer, she said, the answer would be someone who is healthy, who eats well, who has not had an accident and who is not off sick every week. Whether all of that is directly tied to salary, she believes is in part questionable.
Baum stands by his reading and the differences are clear. The Left MP also had a point to make that goes beyond the physical strain of working life itself.
It is not so much the hardship of the work itself, in his view, but what people have as a pension afterwards. Whether they continue to face permanent existential worry, which almost certainly shapes how much time they end up spending in retirement, or whether they can enjoy a rosier life on a very high pension, matters greatly.
Baum is also calling for the contribution ceiling to be lifted for the highest-paid workers, without giving them any additional benefits in return. That, he argued, would make the pension system more sustainable over the decades to come.
Deprez said the idea had already been on the table throughout the consultation. By lifting the ceiling, she said, more money would flow into the coffers. If the system remained as it stands, the highest pensions would only grow higher, unless pension rights were not correspondingly adjusted. All in all, the minister argued that lifting the contribution ceiling would not solve the systemic issues leading to disparities.
Pensions, financing, and life expectancy are all issues that will continue to be picked up during the political return in September.
