How the Luxembourg pension system works
Luxembourg’s statutory old-age pension (pension de vieillesse, paid by the CNAP) has two parts. The flat-rate increments (majorations forfaitaires) pay 25.075% of the reference amount – €2,706.71 a month in 2026 – for 40 insurance years, pro rata for fewer. The proportional increments (majorations proportionnelles) pay 1.763% of the sum of your insured earnings over the whole career, counted up to the contribution ceiling of €13,856.63 a month; the rate rises by 0.016% for each year by which your age plus compulsory insurance years exceed 95, up to 2.05%. These are the rates for pensions starting in 2026; since the 2012 reform they shift with the start year until 2052 (flat-rate 28%, proportional 1.6%). From 20 years there is a minimum pension (€2,436.04 for 40 years); the maximum is €11,278 a month.
The normal pension age is 65, with at least 10 insurance years. An early pension is possible at 57 with 40 years of compulsory insurance, or at 60 with 40 years including complementary periods such as studies from age 18 (up to 9 years); from mid-2026 the requirement at 60 grows by 1 month, rising to 8 months by 2030, unless all 40 years are compulsory. There is no reduction as such, only fewer years and a lower proportional rate; if you do not qualify, the calculator starts the pension at 65 and adds capital to bridge the gap. It assumes a constant real salary; for exact figures, enter the gross pension from your CNAP simulation in MyGuichet.lu.
A supplementary company pension (régime complémentaire) is counted only if you state that your employer has a scheme: enter the annual pension from your statement, or today’s balance and the monthly contributions including the employer’s share. The calculator then adds up all pillars, compares the total with your target share of your last salary and works out the monthly saving needed. It fills the tax-deductible options first: your own contributions to the company scheme (art. 110 LIR, up to €1,200 a year) and private pension savings under art. 111bis LIR (up to €4,500 a year per taxpayer, at least 10 years, paid out between 60 and 75); anything beyond that goes into unrestricted saving.
Pensions pay health and long-term care insurance contributions, then income tax under the official pension formulas with flat allowances for pensioners; the pensioner tax credits (CIP and CI-CO2) are paid even when no tax is due.