Luxembourg Prepares Pension System Changes for 2026

Luxembourg’s government has approved adjustments to the country’s pension system, set to take effect on January 1, 2026, as part of efforts to secure long-term financial stability. The changes aim to balance pension finances up to 2042 and preserve reserve funds until 2050.

Key elements include gradually aligning the actual retirement age with the legal age of 65, as many currently retire earlier, and increasing the total contribution rate from 24% to 25.5% to strengthen the system’s resources.

Other reforms being discussed involve flexible recognition of study years and a phased approach to pension contributions and entitlements, giving workers more clarity on long-term planning.

These measures come after broad public consultation under the “Schwätz mat!” initiative, which sought input from citizens, experts, and stakeholders on how to adapt the pension structure responsibly.

Read more: https://m3s.gouvernement.lu/en/campagnes/lancement-schwatzmat-systeme-retraite1.html

Join Luxembourg Expats, the #1 homegrown community for expats in Luxembourg. Connect with people and businesses locally - discover expats focused local services, buy and sell items, find housing and apartment rentals and buys, events, discounts and meet people to make friends - all in one expats companion app in Luxembourg.

Sign up free at www.luxembourgexpats.lu and become part of Luxembourg’s trusted expats network.