From 10 to 28 September 2009, Swiss Life ran a survey about pensions in Luxembourg on its website. With no less than 534 questionnaires collected, mainly from employees in the private sector, Swiss Life has been able to paint a broad picture of the concerns raised by the pension issue.

State pensions seen as insufficient
While Luxembourg has long been recognised for its strong pension system, employees clearly no longer feel completely protected. Eight out of ten respondents express doubt about whether the state pension will be sufficient to support them when they reach retirement. Some 58% are entirely convinced that it will not be enough, and this figure reaches 65% among employees already affiliated to a supplementary pension scheme established by their employers.

Supplementary pension schemes are attractive
Some 63% of respondents say that the inclusion of a supplementary pension plan in a salary package is a decisive factor or even an essential element when it comes to choosing an employer. Supplementary pension schemes are also considered the most important additional employee benefit, before a company car or meal vouchers, by 46% of those already affiliated to one, and by almost 60% of those who are not so fortunate. This came as a genuine surprise to all HR managers to whom these results were presented at the latest HR One event.

Employees in small companies at a disadvantage
Unsurprisingly, these unaffiliated respondents tend to be employed in the smallest companies (with less than ten employees). Only 20% of employees in small businesses benefit from group insurance, and yet, of the remaining 80%, nine out of ten feel that their pension will be insufficient.

A supplementary pension scheme would doubtless score highly with these employees when negotiating their salary package.

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