CNAP president Alain Reuter says Luxembourg’s 2026 pension changes have gained time without resolving the system’s structural imbalance. The warning comes as annual payments reach €7.36 billion and the reserve’s coverage declines.
Germany's pension commission has recommended linking the retirement age to life expectancy from 2031 and adding a funded investment pillar, in the most far-reaching overhaul of the country's state pension in a generation. Chancellor Friedrich Merz has vowed to implement it in full, even as unions and the opposition revolt.
Salaries and pensions in Luxembourg rise 2.5% from 1 June 2026 as a new index tranche kicks in. The same year brings higher pension contributions (24% to 25.5%), a carbon tax up to €50 a tonne, a permanent Bëllegen Akt home-buyer credit, and the first moves toward a single tax class in 2028. Here is the full picture for your wallet.
The International Monetary Fund's 2026 Article IV mission, concluded on 7 May, projects Luxembourg's real GDP to grow 1.2% in 2026 and 1.7% in 2027, with the general government deficit remaining around 2% of GDP. Staff call for moderate fiscal tightening, broader tax bases and further pension measures, while welcoming the 2026 pension reform.