Luxembourg's government is set to annouce a detailed pension reform in coming weeks.

Luxembourg's health minister Mars di Bartolomeo yesterday intimated that employees need to be at least 60 years old before they can claim a state pension.

Currently, employees can opt to retire at 57 if they have worked in Luxembourg 40 years (an earlier exit from Luxembourg is calculated and refunded/forwarded to your next pension domicile).

One reason for the ratification is based upon the simple fact that life expectancy is longer than it used to be.

With the average life expactancy for residents of the Grand Duchy set at +80 years (source UNICEF), the government needs to address how long retired people claim state pension.

In other words, setting a later date of retirement cuts the amount of funding needed to be provided by the state AND increases the amount contributed by the work force.

There are some questions as to how this will effect non-state retirement plans, as certain industry sectors apply their own regulations/retirement schemes.

Employers argue that the government’s plans for pension reform don’t go far enough, whereas representatives for the unions say the system needs to be simplified. 

We shall find out that impact before the end of the month.