The latest annual report from the National Pension Insurance Administration (CNAP) reveals that pension payments reached €7.36 billion in 2025, marking a more than threefold increase over the amount paid out in 2005.
A notable development is that, for the first time, more pension payments were transferred abroad than within Luxembourg itself. This shift reflects the increasing number of so-called "mixed careers", which comprises individuals who have worked both in Luxembourg and in other countries.
That is a trend that CNAP President Alain Reuter notes mirrors broader changes in the labour market. Despite the rise in international transfers, the majority of pension payments, €4.8 billion out of €7.3 billion, still went to recipients living in Luxembourg.
As of 31 December 2025, the general scheme’s reserve fund held €32 billion, equivalent to 4.24 years' worth of annual pension expenditure, which is well above the legal minimum reserve of 1.5 years. However, CNAP points out this is the lowest level since 2013.
The pure pay-as-you-go premium, which measures the ratio of annual expenditure to the total contribution base, continued to rise last year, reaching 23.7 percent. Nevertheless, this rate remains below the contribution rate, meaning there is currently no reason to adjust pension benefits.
