Martine Deprez, Luxembourg's Minister of Health and Social Security; Credit: M3S

During a press conference held on Wednesday 21 May 2025, Luxembourg's Minister of Health and Social Security, Martine Deprez, outlined the government's main approach and next steps regarding the sustainability of pensions.

The briefing followed on from Luxembourg Prime Minister Luc Frieden's statements during his State of the Nation address.

Minister Deprez emphasised that "the status quo is not an option." Faced with significant demographic and financial changes, the government has said it intends to adapt the system gradually, over a certain time period, "while ensuring its fairness and long-term viability".

The measures envisaged include:

  • A gradual increase in the career length required to qualify for the early retirement pension: the number of years required to receive an old-age pension before the legal age of 65 will be gradually increased beyond the current threshold of 40. This increase will be "phased" and "predictable", with no impact on those who have already retired or those who meet the current conditions before the reform comes into effect. The legal retirement age remains set at 65;
  • Increased flexibility in the recognition of study years, particularly for non-linear career paths. Periods of study will no longer be limited to a strict upper age limit, thus allowing for better recognition of the diversity of training paths;
  • A state budgetary commitment, which will contribute financially to the stability of the system, in order to avoid an increase in social security contributions.

Minister Deprez emphasised that these measures are part of a "collective responsibility approach, based on intergenerational balance and protection of the Luxembourg social model". They aim to "preserve fair access to pensions for all, within a framework adapted to the realities of today and tomorrow".

The ministry also noted that these guidelines are the result of a broad public consultation process, conducted through the "Schwätz mat!" initiative, launched in October 2024. This approach allowed citizens, social partners and experts to contribute to the discussions, via an online platform, bilateral meetings and three thematic expert meetings.

"Schwätz mat! was an invitation to participate, for the general public as well as for stakeholders. Every voice, every contribution received, demonstrates the collective interest and commitment to the future of our pension system," said Minister Deprez.

The final report of the consultations will be published in early July 2025.

All contributions and documents are available online at www.pensioun.schwätzmat.lu.

The Health Minister also announced that she will engage in in-depth discussions with social partners and younger generations in the coming weeks to detail the government's proposed options and prepare for the concrete development of measures.

The goal is to submit a preliminary draft bill to the Government Council (Cabinet) in autumn 2025, following this new phase of dialogue.