The number of people who work beyond retirement age will double in 10 years

The number of people combining early retirement pensions and paid work more than doubled between 2012 and 2020.

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The number of people who continue to work beyond retirement in Luxemburg has been in the last decade after reforms aimed at encouraging older workers to stay in the labor market, according to figures released in response to a parliamentary question on Monday. Has doubled.

Luxembourg Official retirement age is 65 years oldHowever, people can get an early retirement at 57 or 60, depending on the level of their contribution. Statistics show that the number of people who continue to work after receiving a pension increased sharply in both categories between 2012 and 2020.

More than 2,100 people who chose early retirement still had paid jobs in 2020, according to figures released by Social Security Minister Claude Haagen in response to a parliamentary question from LSAP Deputy Mars Di Bartolomeo, 2012. It was more than twice as much as.

This trend is largely reproduced by people over the age of 65, with more than 3,300 people continuing to work beyond their official retirement age in 2020, more than half the number eight years ago. Overall, this figure represents about 2-3% of the total number of pension payment claims.

Despite the increase, the number is low compared to other EU countries.Last year Eurostat, the European Union’s statistic agency, revealed that the Grand Duchy has the lowest proportion of workers between the ages of 55 and 64 in the EU.Make the country a block leader to escape the workplace before they reach retirement age.

Prior to the reforms introduced in 2012, early retirees faced losing up to half of their pension payments if they continued to work, depending on their income level.

The numbers show that the age of early retirement has risen slightly in recent years, but now averages around 60, but Hagen said, “This trend encourages policyholders to stay longer. It seems premature to interpret it as the initial effect of the targeted 2012 reform measures. Their work career. ”

Contributions to Luxembourg’s pension fund will have to increase in the coming decades to cope with the aging population, Hagen said last week.

According to a pension fund report at the end of April, the number of people claiming pensions increased by more than a quarter in the seven years from 2013 to 2020.

“Our general pension insurance system is financially sound and will continue to do so for the next few years,” Hagen said in response to a review of the pension fund. “But demographic evolution is similar to that of many other countries, and employment growth cannot make up for this evolution indefinitely.”

By 2070, more than 30% of Europe’s population is expected to be 65 or older, the European Commission said in a report last year. Luxembourg currently has the second lowest proportion of the EU’s total population over the age of 65. Brock’s statistic agency Eurostat said in 2021.

(Additional report by John Monaghan)

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