½Û×ÓÊÓƵ

Pensions provision is organised under three 'pillars':

1. Ìý

   •ÌýÌýÌýÌý First pillar

2. Ìý

   This is social pension insurance and participation is compulsory.

3. Ìý

   •ÌýÌýÌýÌý Second pillar

4. Ìý

   This is employer provided supplementary pension scheme that is mainly funded by the employer. Provision and participation is voluntary.

5. Ìý

   •ÌýÌýÌýÌý Third pillar

6. Ìý

   This is private pension provision.

State pension scheme

Luxembourg has a state pension scheme, for which the retirement age is generally 65 for both men and women, although early retirement can be taken in certain circumstances. A minimum full pension is paid after 40 contributions' years. The pension consists of a flat-rate pension plus a capped earnings element.

The contributions are tax deductible when made, and the pension is taxable when paid.

For rates of withholding for pensions insurance through the social security system see 2.2.1.

Further information on the state pension can be found at the National Insurance Pension Fund (CNAP).

Employer supplementary pension schemes

There