Whilst the debate on the future of the pension system is far from over, a report by the Chamber of Deputies’ Scientific Unit entitled “Rising life expectancy and mortality differentials among pensioners in Luxembourg” highlights significant disparities in life expectancy between different categories of pensioners. The result is gaps amounting to several years’ worth of retirement, depending on pension level, career path or gender. This is set to reignite the debate on the fairness of the system.
A paradise for the elderly
Firstly, the study confirms Luxembourg’s strong performance in terms of life expectancy. With an average life expectancy of 83.2 years in 2024, the Grand Duchy ranks fifth in the European Union, behind Spain, Sweden, Italy and Cyprus. The Grand Duchy ranks fifth with an average life expectancy at birth in 2024 of 83.2 years, behind Spain (84 years), Sweden (83.8 years), Italy (83.7 years) and Cyprus (83.5 years), with the EU average standing at 81.5 years.
In 2024, a 60-year-old can expect to live for another 25 years on average – around 26.5 years for women and 23 years for men. Since the early 2000s, life expectancy at age 60 has been increasing by around one year per decade. According to Statec, life expectancy at birth for women in Luxembourg in 2070 could reach 90.3 years, compared with 85.2 years in 2025. For men, life expectancy could reach 86.7 years in 2070, compared with 81.1 years in 2025. The mortality rate, meanwhile, stood at 6.4 per cent in 2025, with an average age of 78.1 years (81.1 years for women, 75.1 years for men).
It’s better to be rich…
This increase in life expectancy is one of the main arguments put forward for adapting the pension system to demographic change. However, the authors show that there is another reality: the extra years of life are not distributed equally across different sections of the population. For the most affluent pensioners, retirement is not only more comfortable financially, but also lasts longer. Conversely, those on the lowest incomes have fewer years in which to benefit from the entitlements they have accrued over the course of their working lives.
The evidence is clear: amongst men who have spent the bulk of their working lives in Luxembourg, those receiving the highest pensions live, on average, around six years longer after the age of 60 than those receiving the lowest pensions. Depending on the statistical models used, this advantage can even reach eight years. In other words, although everyone contributes to the same system, not everyone benefits from it for the same length of time.
Inequalities are not limited to pension levels
The study also shows that differences in life expectancy vary according to individual profiles. Among women, the amount of the pension explains the differences in life expectancy to a much lesser extent than among men. By contrast, having worked in a manual labour role is associated with a life expectancy that is three to four years shorter. The researchers also note that Portuguese nationals in retirement have a lower-than-average mortality rate, as do former cross-border workers, who also enjoy a longevity advantage.
At a time when the government is considering the future of the pension system, this study serves as a reminder that the issue is not solely about the system’s funding. It also raises questions about how retirement years are distributed across different sections of the population.
