Old age pension and retirement

Did you know that Luxembourg is one of the top 10 countries in the world in terms of old age pensions? So how do pensions work in Luxembourg, who can benefit and how?

Who can claim an old-age pension in Luxembourg?

Every employee or self-employed person in Luxembourg contributes 8% of their monthly salary to a national pension fund. The employer also contributes the same amount on behalf of the employee. These contributions go to the employee’s pension fund and constitute the first pillar of old age pensions.

Calculate your net salary from your gross salary.

Old age pension

Employees or self-employed persons can claim an old-age pension in Luxembourg, provided they meet several conditions:

  • Have reached the legal retirement age in Luxembourg, i.e. 65 years
  • To have contributed to the pension insurance for a minimum period of 120 months during their working life. These contribution periods, called “stages”, can be compulsory (articles 170, 171, 172 of the Social Security Code), continuous (article 173), optional (article 173 bis) or retroactive (article 174).
  • Have worked in Luxembourg for at least 12 months

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

The years of study (up to 9 years) carried out between the ages of 18 and 27, in Luxembourg or abroad, can be taken into account to reach the number of years of service required to trigger retirement. However, beware of the final amount of the old-age pension paid, since these years are not contributed to!

Early retirement pension

It is possible to receive an early old age pension:

  • from the age of 57 if the insured person can prove 480 months of compulsory insurance contributions
  • or at age 60, provided you have 480 months of insurance contributions, including 120 months of compulsory, continuous, optional or retroactive insurance.

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

Application and calculation of the old age pension

The applicant for an old-age pension must apply to the pension fund of the country in which he or she resides. This request must be made a few months before the retirement age.

The country of residence then calculates the pension rights according to its legislation and that of the country or countries where the insured has contributed, according to European or bilateral agreements. The insured will receive benefits from each country where he/she has contributed, in accordance with the legislation of each of these countries.

If, at retirement age, the applicant does not meet the conditions for old-age insurance contributions in Luxembourg as defined above, he or she may request reimbursement of the contributions he or she would have made in Luxembourg (minus the employer’s share). He then loses the benefit of any Luxembourg pension.

To learn more about the old age pension in Luxembourg and to apply for a pension, visit the website of the Caisse Nationale d’Assurance Pension.

There is actually no Luxembourg pension simulator. Nevertheless, to have an okus or less precise idea, you can simulate your future retirement by following this link on IPension .

A request for a pension calculation can be made to the CNAP as early as age 55.

Some figures on pensions in Luxembourg

The amount of the pension in Luxembourg is relatively high. The minimum pension received for 40 years of contributions in Luxembourg will be 2,035.19 euros gross in 2022.
The maximum amount is capped. In 2022, the maximum pension that can be received is 9,422.19 euros.

It is also important to know that the amount of pensions is linked to the index. Their amount is automatically readjusted when the index is triggered.

Those who have not spent their entire career in Luxembourg receive an average of 1,280.40 euros per month, plus pensions from other countries where they have worked.

Part-time, self-employment and insurance periods

It should be noted that part-time work and self-employment affect the length of contributions required for retirement.

A part-time worker must work a minimum of 64 hours per month for the month of work to count toward the length of contributions.

A self-employed person must work a minimum of 10 calendar days per month for the month to count.

In order to retire at the earliest at age 60, a worker may buy back periods of insurance in the following cases

  • the worker stopped working to take care of his family
  • the employee has contributed in a country that has not signed a social security agreement with Luxembourg.

Supplementary pension


To prepare for your retirement, you can also contribute to a supplementary pension with an insurance company . By subscribing to this type of contract, you will benefit from an additional retirement benefit. This pension will be paid to you if you have contributed for at least 10 years, no earlier than age 60 and no later than age 75.

By contributing to a supplementary pension, you benefit from tax deductions on your taxable base up to 3,200 euros per year.

Workers who have contributed to the compulsory pension insurance for 12 months in the 3 years preceding their disaffiliation may also opt for continued insurance while waiting to find a job. The request must be made to the CCSS within 6 months of the end of the compulsory contributions.

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