Pensions insurance in Luxembourg

The pension system in Luxembourg is based on three pillars:

1. The statutory pension
2. The supplementary pension paid by the employer (optional)
3. The supplementary pension built up personally (optional)

The statutory pension

The granting and amount of statutory pensions in Luxembourg take three criteria into account:

• Age: the legal retirement age is 65. But early retirement is possible at 57 or 60 under certain conditions.

• The period of professional activity during which you have paid contributions (called “stage”): 120 months minimum within the European Union, Switzerland, Liechtenstein, Norway and/or Iceland (including at least one year in the Grand Duchy). A forty-year stage must be proven in order to benefit from a full pension.

• Income received during the stage.

More information at http://www.cnap.lu/les-pensions/pension-de-vieillesse/les-pensions-de-vieillesse/

The supplementary pension paid by the employer

Your employer can elect to offer you a pension scheme which supplements the statutory State retirement pension.

The supplementary pension insurance built up personally

To avoid risking a drop in your standard of living when you retire, you are strongly advised to take out retirement insurance from a private Insurance Company like AXA. This will supplement the statutory pension and the employer's pension scheme.

In addition, these products are tax-deductible (Art. 111bis LIR – Luxembourg Income Tax Law), provided that they are taken out for a minimum of ten years (more information on our Taxation page).

AXA offers a pension insurance product: MySmartPension