Depending on their history of pension insurance contributions and their age, an insured may apply for:

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

Non-resident workers who have paid into a pension insurance scheme in Luxembourg enjoy the same entitlements as do resident workers.

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

Any person may be covered by the general pension insurance scheme, provided they:

• 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, i.e. 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 or voluntary basis, retrospectively purchased periods and additional 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 the insured has an insurance history of 40 years of mandatory pension insurance contributions;
• 60 years, if the insured has an insurance history of 40 years of mandatory pension insurance contributions, voluntary contributions, retrospective buyback and/or additional periods, including at least 10 years of mandatory or voluntary contributions and/or retrospective buyback periods.

Deadlines

A pension will not automatically be awarded, even if the insured satisfies all the conditions. They must apply to receive their pension.

If an insured:

• has only ever worked in Luxembourg: they may apply between 2 and 6 months prior to their pension start date;
• has been part of multiple pension schemes in Luxembourg over the course of their career: they may apply 6 months prior to their pension start date;
• has worked both in Luxembourg and in one or more foreign countries: it is best that they apply at least 6 months prior to the planned start date of their pension.

How to proceed

Filing the application in the country of residence

Residence in Luxembourg

If the insured is a resident in Luxembourg, they must apply to the National Pension Insurance Fund (Caisse nationale d’assurance pension – CNAP), with the necessary documents (certificates or diplomas, formal record of work history abroad, etc.).

If the insured, over the course of their career in Luxembourg, has been part of both the general pension scheme (private sector – CNAP) and the special pension scheme (government and communes), they must apply to the body responsible for the scheme they were last registered with.

If the insured has worked both in Luxembourg and in one or more foreign countries, the CNAP is in charge of applying to the relevant pension schemes abroad on their behalf.

Residence abroad

If the insured is not a Luxembourg resident, they must apply to the competent body in their 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 length of contribution is calculated based on the duration of the periods of contributions to a pension insurance scheme, on a mandatory or voluntary basis, retrospectively purchased periods and additional periods up to a maximum of 40 years.

'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: Calculation of pension amount.

Employment/self-employment

People in receipt of an early old-age pension are permitted to engage in a professional activity. However, the pension is subject to anti-accumulation rules if combined with earned income.

Any pensioner under the age of 65:

• may earn income as an employee, without their pension being reduced or withdrawn, provided such earned income is less than one third of the social minimum wage (SMW);
• who, as an employee, earns more than one third of the minimum social wage, may receive both their pension and a salary, provided that the aggregate amount does not exceed the average of the 5 highest annual salaries in their career for which contributions have been paid. If that cap is exceeded, the pension is reduced in relation to that limit;
• who, from self-employment, earns more than one third of the social minimum wage each year loses their entitlement to an early old-age pension.

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

Once the recipient of an old-age pension reaches the age of 65, their professional activity is no longer subject to anti-accumulation rules.

Minimum and maximum amounts

Under no circumstances may an early old-age pension be less than 90 % of the reference amount if the insured has completed 40 years of insurance contributions. This sum is decreased by one 40^th per missing year between the 20^th and 39^th years.

In order to be entitled to the minimum pension, the insured must have contributed for at least 20 years, including 10 years of mandatory, voluntary or purchased contributions.

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.

Estimation of an old-age pension/early old-age pension

The CNAP will only accept an application for a pension estimate if the applicant is over the age of 55. When they reach that age, applicants are advised to think back on periods of study or unpaid professional training, and periods spent working abroad, and have this information readily available. The insured must provide supporting documents (certificates or diplomas from the age of 18 onwards, formal records of insurance contributions made abroad, etc.).

The time required to process an application to estimate the level of a pension depends on the complexity of the application. Processing can take between 1 and 3 months, or even up to 6 months in particularly complex cases.

The record of insurance history in Luxembourg, which is sent to insured individuals annually, includes an estimation of pension due from the age of 55, taking account of their recorded contributions, but not of any additional periods.

To request an estimate, please use the contact form on the CNAP's website: eMail – CNAP.

Forms / Online services

Who to contact