The economic position of the elderly in Luxemburg in a cross-national perspective

In many countries, the elderly population is a growing demographic group due to declining fertility and increasing life expectancy. This is also the case in Luxembourg where the biggest population increase from 2001-2008 can be attributed to those 60 years of age and older (about 11% compared to 10% for 20-59 and 6% for those less than 20). The population of elderly men (60 and over) increased by about 16% and that of elderly women by 8% in these years (STATEC). Projections indicate that the size of the elderly population will be further increasing and as a result more pressure will be put on the pension system. This note examines the economic well-being of the elderly in Luxembourg and compares it to findings for a selection of countries (Canada, France, Germany, Italy, Sweden and United States). It also points to possible economic vulnerabilities of the elderly in Luxembourg. In many countries, private assets are playing an increasing role in buffering life uncertainties as rich economies have been experiencing a shift of risk from the State to the households brought about by restraining welfare states and falling job security. For the elderly, another possibility to finance their retirement is to draw on their life-long savings (i.e., their wealth) either through selling their assets or taking out loans secured by the value of their former investments. We start by looking at the economic position of the elderly by analyzing total annual household disposable income corrected for household size1. To allow for cross-country comparisons monetary values are expressed in one single currency for one year.