Pension Plan - Supplementary pension scheme
According to Article 111bis L.I.R.
- Tax deductible premiums
- Supplementary capital for your retirement
- Investments which are right for you
It is a life insurance policy whose primary purpose is to build up capital or additional income for retirement.
This type of policy is governed by Article 111-bis of the L.I.R. and enables you to benefit from tax deductions on your payments, up to the maximum deductible limit.
- Maximum EUR 3,200 per year
- Whatever your marital status
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Investments tailored to your risk profile: defensive, balanced or dynamic.
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Discretionary, risk-profiled or self-directed management - advice tailored to your profile and preferences.
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Access to ETFs that offer performance, diversification and low fees.
- Annual or monthly premium
- The premium may be revised or changed at any time.
Pension Plan, the flexible pension savings plan
You can deduct up to EUR 3,200 per year on your tax return, whatever your marital status.
The premium can be paid by:
- Periodic monthly payments
- Annual payments
You can suspend deductions at any time.
It is also possible to make free payments at any time.
- Partial surrenders are not possible. Any surrender will result in taxation of the entire refund amount for income tax purposes at the normal rate.
- Early full surrender is not permitted (except in the event of the policyholder’s death or acute disability).
The policy has a minimum term of 60 years and a maximum term of 75 years. It must have existed for at least 10 years.
At the end of the policy, the accumulated capital is paid-out in one of the following ways:
- A one-time payment
- A monthly annuity for life
- By instalments (x3 max)
It is possible to combine these three methods.
The capital is taxable once, at half the standard rate; and only half the income is taxable.
The Pension Plan policy is available to:
- residents of Luxembourg;
- non-resident cross-border commuters, provided they make a tax declaration in the Grand Duchy of Luxembourg.
Policyholders can choose between three management options to manage their investments according to their level of involvement and objectives:
- Discretionary management: management is entirely delegated to our experts. Ideal for those seeking simplicity and a secure approach.
- Risk-profiled management: the strategy is optimised according to your investor profile (defensive, balanced or dynamic). This is the most effective solution, designed for clients who want proactive management without complexity.
- Self-directed management: the subscriber retains control over their investment choices, with access to a wide range of funds, including ETFs, to maximise net returns.
ESG options are also available for each solution.
* The return is linked to the performance of the chosen investment fund. No guarantee of return is given by Baloise Vie Luxembourg. The financial risk is borne entirely by the policyholder.
Would you like to be contacted to find out more about the Pension Plan contract? Simply fill in this form:
- 1st component: social security (the statutory pension)
- 2nd component: supplementary pension scheme (which is optional and set up by the employer)
- 3rd component: an individual pension policy
With longer life expectancy and a falling birth rate, it is possible that your statutory pension will be less than your working income.
Contributing personally to your pension will enable you to:
- maintain a comfortable standard of living;
- ensure that you are financially independent;
- look forward to a longer life expectancy;
- benefit from tax advantages thanks to the favourable legislation in Luxembourg for pension policies.
iPension is the first application which enables you quickly to calculate your pension from the Luxembourg CNAP (National Pension Insurance Fund).
Annual contributions €3,200
With a taxable income of €50,000 she has selected the Baloise Pension Plan and pays an annual contribution of €3,200 to build up a supplementary pension when she reaches the age of 65. She has also chosen to place her savings in a guaranteed rate fund because she wants to secure her savings.
What will be Mathilde's tax saving?
On the €3,200 which Mathilde invests each year, her annual tax saving will amount to €1,335 (and thus the real cost of her savings is only €1,865)
What sum in savings can Mathilde expect when she retires?
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Mathilde will have the choice of receiving: |
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The capital she has saved |
or | A monthly life annuity of € 350 /month |
The amounts shown in the examples are simulations based on assumptions (return, taxation, investment period, etc.) and do not constitute a guarantee of performance or a contractual commitment.
Annual contributions €1,800
With a taxable income of €35,000 he has selected the Baloise Pension Plan and pays a monthly contribution of €150 to build up a supplementary pension when he reaches the age of 65. He has also chosen to place his savings in an investment fund because he wants to manage his savings more actively.
What will be Pierre's tax saving?
On the €1,800 which Pierre invests each year, his annual tax saving will amount to €498 (and thus the real cost of his savings is only €1,302)
What sum in savings can Pierre expect when he retires?
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Pierre will have the choice of receiving: |
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| The capital he has saved € 105,000 |
ou | A monthly life annuity € 450 /month |
The amounts shown in the examples are simulations based on assumptions (return, taxation, investment period, etc.) and do not constitute a guarantee of performance or a contractual commitment.
We are here to help you optimise your tax return
* For cross-border commuters who make a tax declaration in the Grand Duchy of Luxembourg
There is no maximum limit on the amount you can pay into a pension policy. However, you can only deduct a maximum of EUR 3,200 per year per taxpayer when you file your tax return.
The amount payable at the end of the contract may be paid out in the form of a life annuity. See what your insurer provides.
Payments made into a pension contract are tax-deductible up to a maximum of EUR 3,200 per year per taxpayer.
On maturity, the capital is only taxable at half the overall rate and only half of the annuity is taxable.
The amount of your pension in Luxembourg is calculated on the basis of the number of years you have paid contributions in Luxembourg. Try our IPension simulator to calculate the amount of your pension. Or visit the CNAP website for more information.
The minimum monthly pension is EUR 2,165.58 as at 1 April 2023. This amount is given for 40 years of contributions. More information on the CNAP website.
Years of study can be taken into account for retirement as additional periods under certain conditions, which can be consulted on the CNAP website.
| Product Name | Category SFDR |
|---|---|
| Pension Plan - Periodic premium | Article 8* |
| Pension Plan - One-time premium | Article 8* |
| Pension Plan - Guaranteed rate | Article 6 |
* Multi-option product with one or more investment options that qualify the product as a financial product promoting environmental or social features in the sense of Article 8 of the SFDR.
The product can only qualify as a financial product in the sense of Article 8, if (i) it invests in at least one investment option qualified as Article 8 or Article 9, and (ii) at least one of these investment options is retained during the holding period of the insurance product.
SOFT and HARD CLOSE
A Soft close is a term used when the fund is closed to new subscriptions, until further notice. The soft close is intended to limit subscriptions but the fund remains open to subscriptions within the scope of planned payments.
Hard close where the fund is closed to both subscriptions and planned payments. In general, funds impacted by soft close or hard close are equity funds invested in small and mid-cap companies. The closure protects the interests of unitholders.
ETF
An exchange-traded fund (ETF) is a type of security that involves a collection of securities—such as stocks—that often tracks an underlying index although they can invest in any number of industry sectors or use various strategies. ETFs are in many ways similar to mutual funds; however, they are listed on exchanges and ETF shares trade throughout the day just like ordinary stock. ETF funds can be in multiple currencies.
SFDR
The European sustainable finance disclosure regulation (“Sustainable Finance Disclosure Regulation” or “SFDR” or “Disclosure Regulation”) imposes transparency requirements on any financial product that promotes environmental or social characteristics or has a sustainable investment objective.
It applies to “financial market participants” such as an insurance company offering insurance-based investment products.
In other words, the financial market participants have to provide transparent information on the extent to which they take sustainability criteria into account in their investment.
Under Disclosure Regulation financial products shall be classified into 3 distinct categories depending on their sustainability levels: Article 6 products, Article 8 products, Article 9 products.
- Article 6 financial products that do not promote environmental and/or social characteristics and that do not have a sustainable investment objective and that do not meet the definition of Articles 8 and 9.
- Article 8 financial products that promote, among other characteristics, environmental and/or social characteristics or a combination of these characteristics, provided that the companies in which the investments are made apply good governance practices.
- Article 9 financial products that pursue a sustainable investment objective.
| ISIN Code | Fund name | Factsheet | KID | Risk class | SFDR Category | Other information |
|---|---|---|---|---|---|---|
| LU1829218749 | Amundi Bloomberg Equal-weight Commodity ex-Agriculture UCITS ETF Acc | Factsheet | KID | 4 | Art. 6 SFDR | ETF |
| LU1650489385 | Amundi Euro Government Bond 10-15Y UCITS ETF Acc | Factsheet | KID | 3 | Art. 6 SFDR | ETF |
| LU1650487413 | Amundi Euro Government Bond 1-3Y UCITS ETF Acc | Factsheet | KID | 2 | Art. 6 SFDR | ETF |
| LU2924150282 | Amundi Euro Government Low Duration Tilted Green Bond UCITS ETF Acc | Factsheet | KID | 3 | Art. 8 SFDR Art. 10 SFDR |
ETF |
| LU1681046261 | Amundi Euro Government Tilted Green Bond UCITS ETF Acc | Factsheet | KID | 3 | Art. 8 SFDR Art. 10 SFDR |
ETF |
| LU1681042609 | Amundi MSCI Europe ESG Broad Transition UCITS ETF DR - EUR (C) | Factsheet | KID | 4 | Art. 8 SFDR Art. 10 SFDR |
ETF |
| IE0006IP4XZ8 | Amundi MSCI USA ESG Broad Transition UCITS ETF Acc | Factsheet | KID | 4 | Art. 8 SFDR Art. 10 SFDR |
ETF |
| IE000CL68Z69 | Amundi MSCI World Climate Paris Aligned UCITS ETF - Acc | Factsheet | KID | 4 | Art. 8 SFDR Art. 10 SFDR |
ETF |
| IE000BI8OT95 | Amundi MSCI World UCITS ETF Acc | Factsheet | KID | 4 | Art. 6 SFDR | ETF |
| LU1135865084 | Amundi S&P 500 II UCITS ETF Acc | Factsheet | KID | 4 | Art. 6 SFDR | ETF |
| LU0908500753 | Amundi Stoxx Europe 600 UCITS ETF Acc | Factsheet | KID | 4 | Art. 6 SFDR | ETF |
| LU2931335652 | BFI Activ N | KID | 3 | Art. 8 SFDR Art. 10 SFDR |
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| LU2247547107 | BFI Dynamic Allocation 0-40 | Factsheet | KID | 2 | Art. 8 SFDR Art. 10 SFDR |
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| LU2931335736 | BFI Dynamic N | KID | 3 | Art. 8 SFDR Art. 10 SFDR |
||
| LU0226794815 | BFI Equity Fund | Factsheet | KID | 4 | Art. 8 SFDR Art. 10 SFDR |
- |
| LU2931335223 | BFI Progress N | Factsheet | KID | 3 | Art. 8 SFDR Art. 10 SFDR |
|
| BIF Eticx Agressive | BIF Eticx Agressive | Factsheet | KID | 4 | Art. 8 SFDR | - |
| BIF Eticx Balanced | BIF Eticx Balanced | Factsheet | KID | 3 | Art. 8 SFDR | - |
| BIF Eticx Conservative | BIF Eticx Conservative | Factsheet | KID | 3 | Art. 8 SFDR | - |
| BIF Eticx Defensive | BIF Eticx Defensive | Factsheet | KID | 3 | Art. 8 SFDR | - |
| BIF Eticx Dynamic | BIF Eticx Dynamic | Factsheet | KID | 3 | Art. 8 SFDR | - |
| LU0147323579 | Liquid EURO | Factsheet | KID | 1 | Art. 6 SFDR | - |