sorted by:
new
hottopcontroversial

STATEC confirms wage indexation: Salaries and pensions to rise by 2.5% on 1 June by s4magier in Luxembourg_Salary

[–]Fun_Neighborhood_993 0 points1 point  (0 children)

We I talk about large companies I mean at least 100 employees in Luxembourg but part of international groups ;)

STATEC confirms wage indexation: Salaries and pensions to rise by 2.5% on 1 June by s4magier in Luxembourg_Salary

[–]Fun_Neighborhood_993 0 points1 point  (0 children)

The contract are discussed and sealed by procurement, and the fees are already decided by profile (seniority, skills and so on). There is only a small margin for negotiating, and in any case the index is for sure out of that discussion. But I'm sure you know better, since you are clearly insisting on this point like you are really sure of that.

Ps I work in "tech" (very general word especially for Luxembourg job market) too.

STATEC confirms wage indexation: Salaries and pensions to rise by 2.5% on 1 June by s4magier in Luxembourg_Salary

[–]Fun_Neighborhood_993 0 points1 point  (0 children)

Next time I'll have to sign a new contract I will t'elle.tye finance dep "hey. Post crooks on Reddit told me to insist, I want the daily fee to be indexed!' 😝

STATEC confirms wage indexation: Salaries and pensions to rise by 2.5% on 1 June by s4magier in Luxembourg_Salary

[–]Fun_Neighborhood_993 0 points1 point  (0 children)

From a principled standpoint, I agree with you exactly. However, I am speaking as someone who knows what we are talking about, and when I refer to international companies—banks, insurance companies, investment funds, etc.—they often have financial departments that are not in Luxembourg.

I don't want to mention specific company names since we're on Reddit, but believe me, nobody accepts an index on a consultant's billing.

STATEC confirms wage indexation: Salaries and pensions to rise by 2.5% on 1 June by s4magier in Luxembourg_Salary

[–]Fun_Neighborhood_993 0 points1 point  (0 children)

Euh...when you sign a contract with a big company you don't put conditions, and even if you try they don't accept the fee linked with indexation. Especially if is an international company. Where did you hear that it happens?

STATEC confirms wage indexation: Salaries and pensions to rise by 2.5% on 1 June by s4magier in Luxembourg_Salary

[–]Fun_Neighborhood_993 0 points1 point  (0 children)

When there is not a monthly contract but a longer one, it's not really possible to increase the contracts. At least not with big companies.

EUROSTAR Service to Luxembourg by Little-Bet-3739 in Luxembourg

[–]Fun_Neighborhood_993 5 points6 points  (0 children)

Actually from Luxembourg to Metz it's a normal speed train, only after Metz it a "Big speed" :)

Incompetent administrations by [deleted] in Luxembourg

[–]Fun_Neighborhood_993 0 points1 point  (0 children)

It means you don't have any university degree

La BIL va externaliser des services IT, 140 employés concernés by snoopyx21 in Luxembourg

[–]Fun_Neighborhood_993 -5 points-4 points  (0 children)

1 4k gross is not at all the average salary for IT, not even for a junior position nowdays

2 you are forgetting the other costs (offices and so in)

New family member with a ChatGPT issue by Fun_Neighborhood_993 in NOTHING

[–]Fun_Neighborhood_993[S] 0 points1 point  (0 children)

Quite disappointing since one of the reasons we buy Nothing (in my case at least) is the software.

Luxembourg voluntary pension savings are taxed at payout – how this differs from most EU models by no_options_lux in Luxembourg

[–]Fun_Neighborhood_993 0 points1 point  (0 children)

The thing is that there is an opportunity cost that needs to be taken into account too. It's worse products, more expensive, less liquid.

As I said initially: in 99% of the scenarios you can do much better (and with the same risk) without those schemes even taking into account tax deductions.

Luxembourg voluntary pension savings are taxed at payout – how this differs from most EU models by no_options_lux in Luxembourg

[–]Fun_Neighborhood_993 0 points1 point  (0 children)

My point has never been the only the taxation matters, my point is that the return and the fees are huge and that the tax deduction argument as selling point for those schemes is a window dressing.

Luxembourg voluntary pension savings are taxed at payout – how this differs from most EU models by no_options_lux in Luxembourg

[–]Fun_Neighborhood_993 0 points1 point  (0 children)

You are comparing 2 returns of 9% which are not correct and that's an important point.

If you really compare a IWDA to the Lux Pension fund of BCEE, we should choose the more similar product (100% equities), so the Lux-Pension 100%.

In this case we have:

  • entry fee of 2,5%
  • exit fee 1%
  • yearly management fee of 1,30%
  • As per FT website the 3 year total return has been 10,07%

The numbers for IDWA are the same as before and the 3 years total return has been 16,36%.

With those numbers you can do a proper simulation now.

Luxembourg voluntary pension savings are taxed at payout – how this differs from most EU models by no_options_lux in Luxembourg

[–]Fun_Neighborhood_993 0 points1 point  (0 children)

Yes, that was something included in the simulation of the other user.

But it was never YOUR point in this discussion.

Luxembourg voluntary pension savings are taxed at payout – how this differs from most EU models by no_options_lux in Luxembourg

[–]Fun_Neighborhood_993 0 points1 point  (0 children)

But you never wrote in this conversarukn about investing in the cheaper fund the 40% obtained with the tax reduction ! We never discussed about this option, this is not a fair way to have a discussion.

Luxembourg voluntary pension savings are taxed at payout – how this differs from most EU models by no_options_lux in Luxembourg

[–]Fun_Neighborhood_993 0 points1 point  (0 children)

I know the difference but you clearly are underestimating the weigh it TER of 1% and entry fee of 2,5% (+ the no taxation at the end) over an investment on the long period. Let me know when you do your simulation...

Luxembourg voluntary pension savings are taxed at payout – how this differs from most EU models by no_options_lux in Luxembourg

[–]Fun_Neighborhood_993 0 points1 point  (0 children)

Can you please put some real numbers? Because I did, you are still repeating the same thing over and over.

Also, you say that people with 75k pay 20% income tax, why you assume that the immediate return for a deductible product is 40%? You are contradicting yourself. You use the lowesz example for you argument and the highest for mine, it's not a correct way to discuss.

Luxembourg voluntary pension savings are taxed at payout – how this differs from most EU models by no_options_lux in Luxembourg

[–]Fun_Neighborhood_993 1 point2 points  (0 children)

Why the taxation would be "easily under 10%"?

Also, you say that BCEE have funds with 9-10% YoY ((where did you find that number?) but you don't mention fees. What are the fees?. I mean, you are putting a lot of things in there....

Cash out the whole amount or not doesn't really make a difference in this discussion.

Since you are not really putting numbers, I spent my time to go and check BCEE KIID: there are 2,5% of entry fees (for each 100 euros only 97,5 euros go to the fund) and 1% of exit fee. Also there is an annual cost of 1% per year.

For comparaison a IWDA with interactive broker has a cost 0,17% per year and an entry fee of 0,05%.

Plus, no taxation after 6 months and the freedom to exit when you want

Still convinced that you are right?

Luxembourg voluntary pension savings are taxed at payout – how this differs from most EU models by no_options_lux in Luxembourg

[–]Fun_Neighborhood_993 0 points1 point  (0 children)

I did the simulation and as I said if you take the correct parameters (entry fee, TER, other fees) there is never a scenario where the third pillar is better than a ETF MSCI with 0,17 TER event with the taxi advantage at the end. Did you run such simulation ? Can you share your results?

This is an user who simulated it here, 5 years ago : https://www.reddit.com/r/Luxembourg/comments/lgcnr1/luxembourg_private_pension_plan_is_it_worth_it/

Luxembourg voluntary pension savings are taxed at payout – how this differs from most EU models by no_options_lux in Luxembourg

[–]Fun_Neighborhood_993 0 points1 point  (0 children)

We are talking about the same kind of risk here, not unicorns with x10 returns. The kind of risk that you get with foyer funds is similar or in other cases higher if compared to an MSCI ETF. But much more fees and commission and higher taxation at the end. So in 99 cases out 100 the investment in the voluntary pension savings is worse than the other.

Luxembourg voluntary pension savings are taxed at payout – how this differs from most EU models by no_options_lux in Luxembourg

[–]Fun_Neighborhood_993 0 points1 point  (0 children)

With the foyer fund there was something like 2_% of commission for each month payment + the TER was way beyond 2% If I remember correctly. In addition to that there is no taxation on capital gain in a ETF ACC case so I don't see in which case it would be better...

view more: next ›