Depending on your insurance periods and your age, you can apply for:

• early old-age pension from the age of 57 or 60; or
• old-age pension from the age of 65.

If you are a non-resident worker and have paid pension insurance contributions in Luxembourg, you have the same rights as a resident worker.

Early old-age pension is calculated based on the recognised years of pension insurance contributions, and the contributions paid into the pension insurance fund. These 2 items of data, together, form the individual's insurance history.

Who is concerned

You are covered by the general pension insurance scheme if you:

• engage in a professional activity in Luxembourg, be it as an employee or on a self-employed basis; or
• receive some form of replacement income: sickness benefits, maternity benefits, compensation for an occupational accident or unemployment benefits.

Early old-age pension is payable from the age of 57 or 60.

Prerequisites

General remarks

Entitlement to an early old-age pension is subject to:

• age; and
• recognised years of pension insurance contributions: the insurance history.

Periods of contributions to a pension insurance scheme, on a mandatory, continued or optional basis, retroactively purchased periods and supplementary periods are taken into account in this calculation.

Further details on insurance periods can be found on the website of the CNAP – Insurance history and periods in Luxembourg.

Conditions of allocation

Early old-age pension is payable from the age of:

• 57, if you have an insurance history of 40 years of mandatory pension insurance contributions;
• 60, if you have an insurance history of 40 years of mandatory pension insurance contributions, continued insurance contributions, optional insurance contributions, retroactive purchase and/or supplementary insurance periods, including at least 10 years of mandatory insurance periods, continued insurance periods, optional and/or retroactively purchased periods.

Deadlines

A pension will not automatically be awarded, even if you satisfy all the conditions. You are required to apply for a pension.

If you have:

• only ever worked in Luxembourg: you can submit your application between 2 and 6 months before the start date of your pension;
• been part of multiple pension schemes in Luxembourg over the course of your career: you can submit your application 6 months before the start date of your pension;
• worked both in Luxembourg and in one or more foreign countries: it is best to submit your application at least 6 months before the planned start date of your pension.

How to proceed

Filing the application in the country of residence

Residence in Luxembourg

If you live in Luxembourg, you must send your application to the National Pension Insurance Fund (Caisse nationale d'assurance-pension - CNAP) together with all the required documents (certificate or diploma of study, foreign career record, etc.).

If you were affiliated to the general pension scheme (private sector - CNAP) and to the special pension scheme (state/communal sector) in Luxembourg during your professional career, you must submit your application to the body responsible for the scheme to which you were last affiliated.

If you have worked both in Luxembourg and in one or more foreign countries, the CNAP will submit the pension applications to the competent pension bodies abroad.

Residence abroad

If you do not reside in Luxembourg, you must submit your application to the competent body in your country of residence. The foreign fund must then apply to the CNAP on the insured's behalf so that the insured can exercise their Luxembourg pension rights. The vast majority of Luxembourg's cross-border workers are in this situation.

Application processing time

The time taken to process a pension application will depend on the availability and the soundness of the required data. It may range from:

• a few weeks; to
• several months, if information needs to be obtained from abroad.

When the review is completed, the pension is either approved or rejected in a decision which may be appealed.

Start date

Early old-age pension will begin on the day when the conditions of age and insurance history are fulfilled:

• if the insured ceases their professional activity, pension payments will begin on the day after the insured loses their entitlement to earned income;
• if the insured continues to work, pension payments will begin, at the earliest, on the first day of the month following that in which the application is lodged.

Amount of pension

'Length of contribution' component: flat-rate allowances

Flat-rate allowances are awarded based on the length of contribution.

The calculation of this period (up to a maximum of 40 years) is based on:

• periods of mandatory, continued and/or optional insurance;
• insurance periods purchased retroactively; and
• supplementary periods.

'Contributions paid' component: proportional allowances

Proportional allowances are awarded based on the contributions paid over the insured's insurance history.

An end-of-year bonus is granted to people who are entitled to a pension as at 1 December in a calendar year.

The calculation formulae and examples can be found on the CNAP website: Calcul du montant de la pension (calculation of the pension amount).

Employment/self-employment

As a recipient of an early retirement pension, you may engage in gainful employment. However, the pension is subject to anti-accumulation rules if combined with earned income.

If you are a pensioner under the age of 65:

• you may earn income as an employee, without your pension being reduced or withdrawn, provided such earned income is less than one third of the social minimum wage;
• you can, as an employee, earn more than one third of the social minimum wage, in which case you receive both your pension and a salary, provided that the aggregate amount does not exceed the average of the 5 highest annual salaries in your career for which contributions have been paid. If that cap is exceeded, the pension is reduced in relation to that limit;
• and you have an income as a self-employed person of more than one third of the social minimum wage per year, your early pension is cancelled.

SMW: social minimum wage
P: pension
INC.: income
M5R: average of the insured's 5 highest salaries or incomes in their insurance history

As soon as you reach the age of 65, your professional activity is no longer subject to anti-accumulation rules.

Minimum and maximum amounts

The early old-age pension cannot be less than 90% of the reference amount if you have covered a 40-year period of insurance. This sum is decreased by one 40^th per missing year between the 20^th and 39^th years.

To be entitled to the minimum pension, you must have at least 20 years of insurance periods, including 10 years of mandatory insurance, continued insurance, optional insurance or retroactively purchased periods.

The maximum amount is 5/6^ths of five times the reference amount.

Payment of pension

Pension payments:

• are made monthly and in advance; and
• cease at the end of the month in which the beneficiary dies.

The payment schedule for pensions can be viewed on the CNAP website.

Forms / Online services

Who to contact