Luxembourg Pension System Explained: What You'll Actually Receive

Luxembourg has one of the most generous state pension systems in Europe.

How the Luxembourg Pension Works

1. Number of contribution years
2. Career average salary (adjusted for inflation)

Contribution Rates 2026

Pension Calculation

• Base pension: 23.5% of reference salary (for 40 contribution years)
• Plus: 1.85% per year of contributions beyond 40 years
• Minimum pension (2026): ~€1,945/month for 40 years

EU Portability

• Years in other EU countries count toward the 10-year minimum
• Each country pays a proportional pension based on years worked there
• Luxembourg pays whichever is higher: national or EU-prorated pension

Supplementary Pension

Contributions to a 2nd-pillar pension are tax-deductible up to €3,200/year.