Retirement in Luxembourg: How does the system work?

Statutory retirement age 

The statutory retirement age in Luxembourg is 65. To be eligible for a Luxembourg old-age pension, you must have made pension contributions:

• for at least 10 years (120 months) in one or more countries in the European Union, the European Economic Area, or Switzerland;
• for at least one year into the Luxembourg pension system.

Old-age pensions are granted upon application   to the Caisse Nationale d’Assurance Pension (CNAP). It is therefore advisable to submit an application for a pension to the CNAP several months before the date when you become entitled to a pension.

Early old-age pension 

You may be eligible for an early old-age pension from the age of 57 or 60.

You may be eligible for an early old-age pension from the age of 57 if you have 480 months of mandatory pension insurance contributions. This means that you have worked for 40 years and started work at a very early age – an increasingly rare situation. 

An early old-age pension at 60 is easier to achieve. For this you must have an insurance history of 40 years of mandatory pension insurance contributions plus additional periods during which you did not pay contributions. 

Periods when no pension contributions were paid are taken into account when calculating old-age pensions 

For example, years of study when pension contributions were not paid between the ages of 18 to 27 are taken into account when calculating this insurance history of 40 years.

This is also the case for:

• periods when you received a disability pension;
• the waiting period imposed on young jobseekers before they are entitled to full unemployment benefits;
• periods taken off work for the education in Luxembourg of one or more children under the age of six;
• and much more.

 

Minimum old-age pension in Luxembourg in 2024 

In 2024, the minimum monthly old-age pension for 40 years of contributions in Luxembourg is EUR 2,244.82. The maximum old-age pension is set at EUR 10,392.67 per month. 

What old-age pension can you expect after 40 years of contributions? 

Chaque situation étant différente, il est très compliqué de donner une estimation du montant futur de votre pension. Plus votre niveau de salaire et le nombre d’années de cotisation sont élevés, plus votre pension sera importante.

It’s very difficult to give an estimate of the level of your future old-age pension, as every situation is different. The higher your salary and the number of years of contributions, the higher your old-age pension will be.

For example, if you are aged 60 in 2024 and have worked for 40 years for an average salary that is twice the minimum wage, your gross old-age pension will be around EUR 4,160.80 per month.

If you are aged 65 and have an insurance period of 38 years plus 5 years of study, and an average salary of three times the minimum wage over the entirety of your career, your gross old-age pension will be around EUR 5,697.78 per month.

Some employers offer occupational pension schemes for their employees, which will provide an additional boost for your purchasing power in retirement.  

You can also start to prepare for retirement at the beginning of your career by taking out a personal retirement savings plan on which contributions are tax-deductible.

 

If you are worried that your statutory old-age pension will not guarantee you the same quality of life upon retirement, Luxembourg encourages workers to take out an additional retirement savings plan.

Contributions of up to EUR 3,200 per person per year into such an optional personal retirement savings plan are tax-deductible. The earlier you start to save, the higher the amount available upon retirement will be. Find out now about our comprehensive and flexible pension savings solution.