Pension insurance

Pension system

The pension system in Luxembourg is based on three pillars:

  1. The first pillar corresponds to the compulsory pension insurance provided by social security in the context of professional activity.
  2. The second pillar concerns supplementary pension schemes, set up by employers for the benefit of their employees and governed by specific legislation.
  3. The third pillar is individual retirement provision, taken out privately.

Within the first pillar, there are several different schemes, including:

  • the general scheme,
  • schemes specific to the public sector.

The National Pension Insurance Fund (CNAP) is the competent authority for all insured persons covered by the general scheme (private sector employees and self-employed persons). Its main task is to award pensions under this scheme.

In Luxembourg, the legal retirement age is set at 65, but early retirement is possible under certain conditions.

The pension insurance scheme provides for different types of old-age pensions, each subject to specific eligibility conditions.

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