At a time when the debate on statutory pensions has re-emerged, we're giving you some key information to help you understand the challenges of the current system and some advice on how you can take matters into your own hands. Not only will you be taking strides to secure your future, you'll also be making tax savings every year!

In Luxembourg, the statutory pension system is a redistribution system, which means that the contributions made by the working population are used to pay the pensions of the retired. According to current projections, the pension amount will be higher than the contribution amount from 2027. The reserve that has been built up so far will thus start to be depleted. According to the same projections, this reserve will be completely exhausted in 2047.

So, it's clear that the current system cannot continue indefinitely.

For a better understanding of the limits of the current system, take a look at the video of Claudia Halmes-Coumont, director of LALUX-VIE.

While we wait for changes to this system, which politicians are currently debating, you can take action yourself by building up retirement savings. This life insurance solution is moreover encouraged by the State and comes with a range of interesting tax advantages. The premiums you invest in this kind of policy are tax-deductible up to a maximum of €3,200 per year under article 111 bis of the Law on Income Tax.

Depending on your income and tax situation, you can benefit from a tax reduction up to 45% of the amount invested. This means you can save for later life while getting significant benefits every year.

Discover the tax advantages you can get using the LALUX Assurances simulator.

easyLIFE Pension is a completely flexible solution that can be perfectly adapted to suit your circumstances:

- You can invest from €25 per month and adjust this amount whenever you want.
- You have the choice of several types of investments:

  • The security formula, which guarantees the amount you have saved, no matter what happens.
  • The performance formula, linked to investment funds, for a potentially higher return.

- Whenever your policy matures, your savings are made available to you either in capital or as a life annuity. The choice is yours.

If you are an employee, check if your employer has a Supplementary Pension Scheme in place. If this is the case, you can also supplement it with your personal contributions up to €1,200 per year. The major advantage of this solution is that it helps reduce your monthly taxable income. So, you see an immediate benefit each month: reduced tax.

If you are self-employed, lalux-Safe Future is especially made for you. It also gives you tax advantages granted by the extension of the scope of the law on supplementary pension schemes to the liberal professions and the self-employed.

Finally, as an employer, don't hesitate to put in place a Supplementary Pension Scheme such as lalux-Staff Protect for your employees. This type of policy, which has tax advantages for both your company and its employees, can make all the difference when it comes to motivating your teams, increasing the loyalty of invaluable employees or attracting new recruits.

No matter your circumstances, there are solutions for you, ones that will actively help to tackle the challenge of pensions, secure your future, and give you major advantages.

Don't hesitate to contact your LALUX agent who will be delighted to help you.