Analyses 03/2025 - Report on work and social cohesion 2025

STATEC has published the 2025 edition of its report on social cohesion. In 2024, the average disposable income of Luxembourg households reached nearly EUR 7,700 per month, and the average standard of living stood at EUR 4,900, confirming an improvement in purchasing power despite inflation. However, income inequalities remain marked: the wealthiest 20% have a standard of living 4.7 times higher than that of the least wealthy 20%. The persistent poverty risk rate stands at 6.1%, rising to 26.9% once pre-committed expenses are deducted. The report also highlights the growing challenges associated with ageing: a quarter of pensioners receive a pension below the legal minimum, with women and foreign nationals being particularly affected. Often, their low pension is offset by their spouse's higher pension. The employment rate for people aged 55 to 64 has increased by 57% since 2004, as has the length of working life, which has risen from 30 to 35 years. However, the average retirement age remains lower than that observed in the European Union (60.4 years compared to 61.3 years), and a significant proportion of the population leaves the labour market before the legal retirement age.