Luxembourg’s Ministry of Health and Social Security has announced that the first phase of the consultation process “Schwätz mat! The future of our pension system” ended on 2 December 2024.

The aim of this first phase was to collect proposals to ensure the sustainability of the pension system and to lay the foundations for a broad and transparent discussion with citizens, professionals and the stakeholders concerned. 

An analysis report of this consultation phase has now been made available and provides a detailed assessment of the contributions collected. It highlights the priorities, concerns and proposals of the participants, while identifying the main thematic axes and the dominant arguments. 

The main findings of the online public consultation, which was conducted from 4 October to 2 December 2024, are:

Varied themes - clear priorities

More than 2,000 contributions were received, which the ministry said illustrated the interest of the population in this subject. The contributions were analysed qualitatively and quantitatively, allowing the identification of the priority thematic axes. The analysis was structured around nine main themes that highlight clear priorities for the future of the system: 

- pension level and capping
- alternative financing models for the pension system
- retirement age and transitions
- contribution amounts and ceilings
- sustainable orientation of the pension system
- harmonisation of systems
- supplementary old-age pension provision
- taking into account specific life situations
- pension taxation

The analysis reveals a wide variety of arguments and themes that are closely interrelated. The following areas are the focus of the discussion:

Equity

The most recurring theme, and primary axis, is equity, in particular intergenerational equity and the harmonisation of different pension systems. Many contributions denounced perceived inequalities and called for a fairer distribution of financial resources. Intergenerational equity plays a central role, integrating aspects related to long-term contributions and benefits, as well as investment strategies. This theme also intersects with that of sustainability, reinforcing the idea of a systemic approach.

Sustainability

Sustainability aspects constitute the second major axis of reflection. The focus is on the long-term financial and ecological sustainability of the pension system. The contributions established a link between demographic developments, financing issues and intergenerational justice. Many participants call for alternative financing models including sustainable investments and an adaptation of contribution structures. They stressed the need to take greater account of demographic developments and the needs of future generations in order to ensure the lasting stability of the system.

Adaptability

The desire for greater flexibility regarding the retirement age constitutes the third major axis. The feedback gathered calls for individualised transition solutions as well as specific adaptations to professions. This theme highlights the links between retirement age, professional arduousness and individual situations. The feedback also highlighted the need for transition models that allow each person to organise their retirement according to their personal and professional conditions.

These thematic fields appear several times in the contributions submitted and can be described as the most important thematic areas for the participants.

Luxembourg’s Minister of Health and Social Security, Martine Deprez, underlined the importance of this consultation, which forms the basis for the next essential step, namely the dialogue phase in 2025. Minister Deprez stated: "Public participation demonstrates how essential the issue of old-age provision is for our citizens. The diversity of contributions received represents a valuable element in continuing to shape a sustainable pension system.”

Additionally, the majority of participants expressed themselves to be in favour of moderate reforms, preferring balanced and realistic adjustments aimed at developing the existing system, rather than radically transforming it.

Now that the consultation phase has been completed, the dialogue phase will begin in February 2025, with the aim of expanding on the lessons learned, in collaboration with experts, stakeholders and the general public. For this, a second online participation for the general public on the three major thematic axes will be launched. In addition, in early spring the working meetings of the expert groups will begin, in order to develop concrete proposals. The aim is to have a solid basis for possible reform measures by summer 2025. 

The full report on the consultation phase, the contributions received and the results of the stakeholder consultations are available at: https://pensioun.schwätzmat.lu/fr