Luxembourg prepares pension reform: more seniority, more flexible rules, social justice
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At a press conference on 21 May, Minister of Health and Social Protection Martine Deprez presented the key benchmarks of the future pension reform. This is a continuation of the Prime Minister's statements in his recent address to the nation and the first official announcement of concrete measures.
The minister's main message: "the status quo is impossible". In the face of demographic and financial challenges, the government wants to preserve the system, but adapt it to the new realities. We are not talking about radical steps, but about a gradual and predictable transformation that will begin in the foreseeable future.
Main Measures:
- Gradual increase of the required length of service for early retirement: if now 40 years is enough to retire before the age of 65, this threshold will be gradually increased. Those already retired and those who fulfil the conditions before the law enters into force will not be affected.
- Flexibility in counting periods of study: there will no longer be a rigid age limit for counting university and other educational years, which is especially important for "non-linear" biographies - with retraining, breaks and career changes.
- Financial participation of the state: the government assumes part of the burden in order not to increase social contributions from employees and employers.
Despres emphasises that this is not an attempt to save money, but a responsible step to ensure intergenerational balance. The essence of the approach is to preserve the social model, but to adjust it to the new demographic landscape.
The project grew out of the large-scale public initiative Schwätz mat!, which was launched in October 2024. Hundreds of citizens, experts and trade unions took part in the discussion, both via an online platform and at thematic roundtables. The Minister said "every opinion was heard" and the results of the consultation will form part of the final report to be published in July.
The next stage is a detailed dialogue with social partners and youth representatives, as it is the young who are most affected by the changes. In autumn 2025, it is planned to submit a preliminary draft of the law to the Council of Ministers.
