Residents in Luxembourg say they’d need €408,000 a year to “enjoy life"

Residents in Luxembourg believe they need to earn €408,000 a year to truly “enjoy life,” according to the latest Luxembourg Wealth Survey 2025 conducted by Swissquote Bank Europe and the Luxembourg Institute for Social and Economic Research (ILRES). The study provides a detailed look into how residents perceive wealth, financial comfort, and happiness in one of Europe’s most prosperous nations.

For many Luxembourgers, the definition of being “rich” has a high threshold. Respondents say it takes more than €2 million in assets to qualify as wealthy. Among those earning more than €220,000 per year, the benchmark for wealth rises to €3 million, while families with annual earnings exceeding €365,000 consider €3.8 million the standard for being rich. Younger residents, however, are more modest in their expectations—Generation Z respondents believe €1.2 million would be sufficient to feel financially successful.

The survey found that the average net worth of residents is €924,000, less than half the amount they associate with wealth. When it comes to lifestyle, most residents agree that enjoying life in Luxembourg requires an annual household income of around €408,000. To feel merely financially comfortable, they estimate needing about €249,000 per year.

More than half of those surveyed said they would need at least €100,000 annually to live without financial stress, while just 3% said they would need €500,000 or more. Younger people again appeared less demanding—40% of Generation Z respondents believe they could live comfortably on €100,000 or less per year, compared to only 25% of adults aged 29 to 60.

The study also revealed that financial sentiment among residents has shifted since 2024. About 42% said their financial situation has remained stable over the past year, but 31% reported feeling less wealthy. Only higher earners—those making above €220,000 annually—expressed optimism, with 40% saying they feel richer than last year, a figure that rises to 55% among those earning more than €365,000.

When it comes to the future, many Luxembourgers remain cautious about retirement security. Nearly half believe the state pension will be sufficient or nearly sufficient to support them, but 41% fear it will not be enough. Confidence is strongest among pensioners and pre-retirees, while millennials and Generation Z express greater concern about financial stability in old age. Even among high earners, 43% doubt that public pensions will provide adequate support.

The concept of wealth in Luxembourg is evolving beyond money alone. When asked what it means to be rich, 53% of residents said “having more money,” while 47% preferred “having more time.” A majority associate wealth with freedom—64% said being rich means having the flexibility to work how and where they want. At the same time, three out of four respondents value work-life balance over career success.

The survey also highlights a subtle shift in attitudes toward happiness. While 38% said money contributes to happiness, nearly half believe true happiness depends on other factors. Only 7% view money as essential, and 6% say it adds nothing. Over 80% agree that money helps but does not define a fulfilling life.

Interestingly, most residents do not stay in Luxembourg for financial reasons. The majority cite quality of life, safety, education, and healthcare as their main motivations for living in the country. Family and personal reasons are also major factors, particularly among older residents. Only 13% stay for economic stability or job opportunities, and just 12% attribute their choice to high salaries.

The survey, conducted with 1,697 residents aged 18 and above, paints a nuanced picture of life in Luxembourg—a country known for its wealth yet defined by its people’s search for balance, security, and well-being. While the bar for being rich remains high, the desire for time, happiness, and peace of mind appears to matter even more.
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