Retirement in Luxembourg: everything you need to understand to prepare for your future
In Luxembourg, retirement is based on a three-pillar system: the statutory pension (CNAP), supplementary employer-related schemes and individual retirement savings. If you are searching for ‘retirement Luxembourg’, it is often to understand at what age to retire, how the pension is calculated, and what changes the pension reform that came into force in 2026 will bring.
This article provides a clear overview of:
- retirement ages (65, early retirement under certain conditions),
- the role of the CNAP and key concepts (career, equivalent periods, EU totalisation),
- the changes introduced by the 2026 reform,
- and solutions for supplementing your pension, in particular through a retirement savings plan (tax deduction 111bis, for which the ceiling has been raised).
The aim is to help you check your entitlements, plan your budget and choose the right options, whether you are a resident or a cross-border worker.
↓ How does retirement work in Luxembourg?
↓ What is the CNAP (national pension insurance fund)?
↓ How is my pension amount calculated?
↓ When can you retire in Luxembourg?
↓ What are the conditions for early retirement?
↓ Can I receive my pension if I move abroad when I retire?
↓ How many years do you need to work in Luxembourg to be entitled to a pension?
- The first pillar (mandatory), managed by the national pension insurance fund (CNAP), corresponds to the statutory pension financed by social security contributions.
- The second pillar, optional, is made up of the supplementary pension scheme set up by the employer. It serves to supplement the statutory pension with additional contributions benefiting from tax advantages.
- Finally, the third pillar represents individual retirement savings, such as the supplementary pension scheme contract, which allows you to build up additional capital while benefiting from annual tax deductions of up to 4,500 euros per taxpayer.
On 18 December 2025, the Chambre des Députés (House of Commons) passed the bill amending certain pension schemes.
All adjustments can also be consulted on the CNAP website.
The overall pension contribution rate increases from 24% to 25.5%.
This increase is divided between three contributors:
- Employee: 8.5% (compared to 8% previously).
- Employer: 8.5% (compared to 8% previously).
- State: 8.5% (compared to 8% previously).
- In 2026 (from July): +1 month (481 months required).
- In 2027: +2 months (482 months required).
- In 2028: +4 months (484 months required).
- In 2029: +6 months (486 months required).
- In 2030 and beyond: +8 months (488 months required)
Early retirement at age 57 (based on 40 years of compulsory insurance only), pensions for shift work or night work, and retirement at age 65 are not affected by this extension.
Introduction of progressive retirement in the general scheme: this allows employees who meet the conditions for early retirement (age 60) to continue working part-time while receiving a portion of their pension.
Previously, only years of study completed between the ages of 18 and 27 could be validated as additional periods (up to a maximum of 9 years). This restriction has now been removed, offering greater flexibility for long or late academic careers.
To encourage workers to continue working until the age of 65, a new tax allowance called the Abattement de Maintien dans la Vie Professionnelle (AMVP - Tax relief for continuing in professional life) has been created.
- It is intended for workers who are eligible for early retirement but choose to remain in employment.
- The tax benefit can be up to €9,000 per year (€750 per month) deductible from taxable income.
The annual tax deduction limit for supplementary pensions schemes (Article 111bis LIR) has been significantly increased. It will rise from €3,200 to €4,500 per taxpayer per year from 2026, in order to further encourage personal savings.
The exact terms depend on your situation (career, age, resident/cross-border worker status). For an official estimate, please refer to the CNAP.
The national pension insurance fund (“Caisse nationale d'assurance pension”, or CNAP) is the organisation responsible for managing pensions in Luxembourg. It manages old-age, disability and survivors' pensions.
The CNAP takes care of:
- Calculating and paying pensions.
- Reviewing early retirement requests.
- Making decisions based on the contribution period and the country of residence of the insured person.
The Luxembourg system establishes the pension amount based on the number of years of contributions and the amount of salaries received.
The national pension insurance fund (CNAP) will provide you with an estimation service as of the age of 55.
You can also test our online pension simulation tool.
What is the minimum pension in Luxembourg?
The minimum pension amount as of 1 January 2026 is EUR 2.376,62 and cannot exceed a maximum of 5 times the minimum reference wage. This amount is regularly revalued to take into account changes in the cost of living.
iPension, your Luxembourg pension estimate
The legal retirement age is 65. This rule applies to all employees and self-employed workers exercising a professional activity in the Grand Duchy.
However, to claim a pension paid by Luxembourg, you must provide proof of at least 120 months of insurance with the national pension insurance fund (CNAP).
It is possible to take early retirement from the age of 57 or 60 depending on your situation and your years of contributions.
In Luxembourg, although the legal retirement age is set at 65, it is possible to receive an early retirement pension under two separate age brackets, depending on the nature and length of the insurance career.
Retirement at 57 (long careers)
- Contribution requirement: the insured person must provide proof of 480 months (40 years) of compulsory insurance periods.
This requirement is very strict as it excludes additional periods such as years of study or years spent raising children (‘baby years’). This scheme is not affected by the extension of working life provided for in the new 2026 reform.
Retirement at age 60
- Current contribution requirement: A total of 480 months (40 years) of insurance must be proven.
- Composition of contributions: Unlike retirement at age 57, these 40 years may include additional periods (studies, baby years), periods of continued insurance, optional insurance or retroactive purchase.
- Mandatory minimum: Of these 480 months, the insured person must have at least 120 months (10 years) of compulsory, continued, optional or retroactive insurance periods.
Changes introduced by the 2026 reform
From 1 July 2026, the conditions for early retirement at age 60 will gradually become more demanding with an extension of the required qualifying period:
- In 2026 (from July): 481 months required (+1 month).
- In 2027: 482 months required (+2 months).
- In 2028: 484 months required (+4 months).
- In 2029: 486 months required (+6 months).
- In 2030 and beyond: 488 months required (+8 months).
During your early retirement period and until the age of 65, you may engage in professional activity within certain limits. Your monthly income must not exceed one third of the minimum social wage in order to avoid a reduction in your benefits. Above this ceiling, the amount of your pension will be adjusted according to your new income.
Yes, your Luxembourg pension can be paid abroad. However, certain steps must be taken to ensure continuity of payments and the proper updating of your situation:
- You must inform the CNAP of your change of residence.
- The CNAP will regularly request a certificate of life to verify that you are still entitled to receive your pension.
To be entitled to a Luxembourg state pension, you must have contributed for at least 10 years, totalling the insurance periods completed in Luxembourg and, where applicable, in other countries of the European Union or having an agreement with Luxembourg.
If you have contributed for less than 10 years, your periods of work in Luxembourg will be taken into account for the calculation of pension rights by the other countries concerned, but you will not receive a separate pension from the state of Luxembourg.
Cross-border workers benefit from the same pension rights as Luxembourg residents. The CNAP takes into account all periods of contributions in the Member States of the European Union for the opening of pension rights.
You must submit your pension application to the pension body in your place of residence, several months before your desired retirement date. Your national body will coordinate with the CNAP in Luxembourg.
If you have worked in several member countries of the European Union, you will receive a partial pension from each country. The amount of this pension and the age at which it can be received will be calculated according to the rules in force in each country concerned.
To be entitled to a Luxembourg pension, you must have contributed for at least one year in Luxembourg and have at least ten years of total contributions (including periods worked in other countries of the European Union).
The amount of your pension is insufficient to maintain your standard of living. In addition, Luxembourg is not immune to reforms of the current pension system. It is therefore necessary to provide additional income to compensate for the future shortfall. How can you ensure that you have sufficient income when you retire?
Several solutions can be considered:
- A pension savings life insurance contract: the supplementary pension scheme contract is part of pillar 3, it allows you to build up capital or an annuity for retirement while benefiting from tax deductions.
- Life insurance: life insurance contracts remain very good long-term tools. They allow you to build up savings for retirement while also planning for your estate, and can even benefit from tax deductions under certain conditions.
- Financial investments: You may want to consider investing in financial markets. If you invest for the long term, you could benefit from the markets' high return potential and a compounding effect and protect these assets from inflation. Speak to your trusted financial advisor to learn more.
- Rental property: acquiring one or more properties to collect regular rents is also a way to generate additional income.
- Owning your main home: this is a major advantage for preparing for retirement because it allows you to reduce your monthly expenses once the loan has been repaid. It is preferable to become a homeowner early enough before retirement for the loan to be paid off by the time you stop working.
Preparing for retirement in Luxembourg is not just a question of age and contributions. It is also about anticipating your financial needs, understanding your social rights and considering suitable savings solutions. It is becoming essential to start as early as possible. Take the time to consult a trusted financial advisor or discover our savings solutions to optimise your strategy and ensure a peaceful retirement.
Article first published in January 2025 and updated in January 2026.
Yes, if you have worked in Luxembourg, you are entitled to a Luxembourg pension, even if you live abroad. If you have spent your entire career in the Grand Duchy, your pension will be paid in full by Luxembourg. If you have had a mixed career, Luxembourg will pay the portion corresponding to the periods worked on its territory.
In principle, you must submit your application to the pension institution in your country of residence. This institution will then coordinate the application with the other countries where you have worked. Exception: if you have never worked in your country of residence, you must submit your application in the country where you last worked.
You must have contributed for at least 1 year (12 months) in Luxembourg. In addition, to be eligible for a pension, you must have a total of 10 years (120 months) of insurance by combining your periods of employment throughout the European Union, the EEA or Switzerland (principle of aggregation).
The legal retirement age is set at 65. However, it is possible to take early retirement from the age of 57 (if you have 40 years of compulsory insurance) or from the age of 60 (if you have 40 years of insurance including additional periods such as studies).
The legal age of 65 remains unchanged. However, for early retirement at age 60, the required length of service (currently 40 years) will be gradually extended from 1 July 2026. It will increase from 480 months to 488 months by 2030 (+1 month in 2026, +2 in 2027, +4 in 2028, +6 in 2029 and +8 in 2030). Retirement at age 57 or 65 is not affected by this increase.
You can request a simulation of your statutory pension entitlements directly on the CNAP website (www.cnap.lu) from the age of 55. In addition, insured persons receive an annual Luxembourg career statement if they were affiliated during the previous year.
Yes, each country where you have worked for at least one year will pay you a pension proportional to the length of your employment in that country. You will therefore receive several partial pensions corresponding to your combined career.
Yes, from 1 January 2026, the annual tax deduction limit for individual pension plans will increase from €3,200 to €4,500 per taxpayer. Cross-border workers can benefit from this provided they file a tax return in Luxembourg. Non-resident self-employed persons must also apply for tax assimilation to a resident.