Receive retirement benefits and an old-age pension

Who is eligible for an old-age pension in Luxembourg?

Social Security Contributions and Pillars of the Old-Age Pension System in Luxembourg

Every employee or self-employed person in Luxembourg contributes 8.5% of their monthly salary to a national old-age pension fund. The employer also contributes the same amount on behalf of the employee.

These employee and employer contributions go into the employee’s pension fund and constitute the first pillar of old-age pensions.

The second pillar of retirement pension contributions is funded by any pension plans established within companies. These constitute an attractive benefit in kind for employees by significantly increasing the amount of their retirement pension.

The third pillar of retirement pension contributions consists of individual retirement planning, through capital accumulation savings plans offered by banks and insurance companies.

It is important to note that by voluntarily contributing to this third pillar through a private pension plan, you can deduct your contributions to the retirement insurance policy from your taxable income.

Learn more about the pension system in Luxembourg.

Retirement Eligibility and Pension Payments

Employees or self-employed individuals are eligible for retirement and the payment of an old-age pension in Luxembourg, provided they meet several conditions:

• Have reached the legal retirement age in Luxembourg, which is 65
• Have contributed to the pension insurance for a minimum period of 120 months during their working life. These contribution periods, known as “ ,” may be mandatory (Articles 170, 171, 172 of the Social Security Code), continued (Article 173), optional (Article 173 bis), or purchased retroactively (Article 174).
• Have worked for at least 12 months in Luxembourg

The 10 years of contributions may have been made in Luxembourg, but also in any EU country or in other countriesthat have concluded a social security agreement with Luxembourg.

Years of study (up to 9 years) completed between the ages of 18 and 27, in Luxembourg or abroad, may be counted toward the required number of contribution years to qualify for retirement. Be aware, however, of the final amount of the old-age pension paid, since these years are not subject to contributions!

Old-age pensions will be paid into your bank account.

Receiving an Early Old-Age Pension in Luxembourg

In Luxembourg, it is possible to receive an early old-age pension:

• as early as age 57, provided the insured person can demonstrate 480 months of mandatory insurance contributions
• or at age 60, provided you have 480 months of insurance contributions, including 120 months of compulsory, continued, voluntary, or retroactive insurance.

For more information on old-age insurance contributions, see the Luxembourg Social Security Code.

You can increase your retirement income by enrolling in a Retirement Savings Plan today.

Applying for and calculating your pension in your country of residence

The applicant for the old-age pension must submit their application to the pension fund of the country where they reside. This application must be submitted a few months before reaching retirement age.

The country of residence then calculates pension entitlements based on its own legislation and that of the country or countries where the insured person made contributions, in accordance with European or bilateral agreements. The insured person will receive benefits from each country where they made contributions, in accordance with the legislation of each of those countries.

If, at retirement age, the applicant does not meet the conditions for contributions to the old-age insurance scheme in Luxembourg as defined above, they may request a refund of the contributions they made in Luxembourg (minus the employer’s share). They will then forfeit any entitlement to a Luxembourg pension.

To learn more about old-age pensions in Luxembourg and to apply for a pension there, visit the website of the National Pension Insurance Fund.

There is no official Luxembourg pension calculator. However, you can get a rough estimate using the pension calculator provided by the Chamber of Employees

You can request a pension calculation from the CNAP starting at age 55.

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Some figures on retirement pensions in Luxembourg

The amount of the retirement pension in Luxembourg is relatively high compared to other European countries.

As of January 1 , 2025, the minimum personal pension (full career) amounts to €2,293.55 gross per month.
There is a cap on the maximum amount. As of January 1 , 2025, the maximum personal pension amount is €10,618.30 gross per month.

If you did not complete your entire career in Luxembourg (fewer than 40 years of contributions, but at least 20 years), your pension will be reduced on a pro-rata basis (1/40th for each missing year). Pensions from other countries where you worked are added to this amount.

It is also important to note that pension amounts are linked to the index. Their amounts are automatically adjusted when the index is triggered.

Changes in the economic situation and the labor market have made reform of the pension system in Luxembourg essential. While the system is balanced today, a deficit was indeed foreseeable starting in 2027. The latest reforms mentioned above made it possible to reduce, or even eliminate, this risk.

Part-time work, self-employment, and pension insurance

In Luxembourg, it is important to note that part-time work and self-employment affect the required contribution periods for retirement eligibility.

A part-time worker must work at least 64 hours per month for that month to be counted toward the contribution period.

A self-employed worker must work at least 10 calendar days per month for that month to be counted toward their retirement calculation.

To retire as early as age 60, a worker may buy back insurance periods in the following cases:

• the worker stopped working to care for their family
• the worker has paid contributions in a country that has not signed a social security agreement with Luxembourg.

Supplementary Retirement in Luxembourg

To best prepare for your retirement, you can also contribute to a supplemental pension plan through an insurance company. By taking out this type of policy, you will receive an additional pension benefit when you retire. You must have contributed for at least 10 years. This pension will be paid to you no earlier than age 60 and no later than age 75.

By contributing to a supplemental pension, you are eligible for tax deductions on your taxable income of up to 3,200 euros per year.

Workers who have contributed to mandatory pension insurance for 12 months within the 3 years preceding their withdrawal may also opt for continued coverage while waiting to find a new job. The request must be submitted to the CCSS (Common Social Security Center) within 6 months of the end of mandatory contributions .

Update on the Luxembourg labor market.