Sponsored ContentFor young people, preparing for retirement is essential!

Life expectancy has been steadily rising for several decades. According to a study published by Imperial College London, it could reach 90 years for women and 85 years for men by 2030. With the legal retirement age set at 65 in Luxembourg, this represents a period of 20 to 25 years during which each person must finance their standard of living.

During retirement, you may have the desire to travel, enjoy leisure activities, and have personal time, or carry out projects that were put aside during your professional career. So, to facilitate future activities and provide you with a choice during retirement, it is essential to prepare financially.

Planning for a life that may last until age 90 needs to start today!

Understanding the three pillars of the Luxembourg pension system

In Luxembourg, the pension system is structured around three complementary pillars designed to ensure sufficient income at retirement.

1. The statutory pension

The statutory pension forms the foundation of the amount you will receive, and it depends on:

• your salary throughout your career/working years,
• the number of years of contributions,
• your professional status (employee, self‑employed, or civil servant).

2. The employer’s supplementary pension

This pension, also known as the “second pillar”, is set up by employers for their employees, typically through a group insurance scheme or a pension fund. Self‑employed workers can build this pillar through an RCPI (supplementary pension scheme for the self‑employed).

3. Individual retirement policies

An immediate and attractive tax advantage

Unlike other forms of savings, such as property investments, traditional savings accounts, stock market investments, or cryptocurrencies, an individual retirement policy entitles you to a special tax deduction. Since 2026, it has been possible to pay up to €4,500 per year into a retirement provision contract, which offers a significant tax advantage.

To illustrate the real impact of this benefit, let’s look at two concrete examples:

1. A single person aged 25 earning an annual taxable income of €40,000. If they decide to save €4,500 each year in a personal retirement policy, they will receive a tax advantage of €1,193 per year. Over forty years, this amounts to a total tax saving of €47,720 – a considerable amount over the years.
2. A couple aged 35 with a joint taxable income of €100,000. By each saving €4,500 per year, totalling €9,000, the couple benefits from an annual tax advantage of €3,223. Over thirty years, this amounts to a tax saving of €96,690, clearly demonstrating the importance and effectiveness of the third pillar in retirement planning.

These figures clearly show that retirement provision offers a double benefit: immediate tax savings and a significantly strengthened future pension.

Solutions offered by Foyer

At Foyer, various types of personal pension savings policies are available to suit all profiles, whether you are a cautious saver or a more dynamic investor. A retirement policy offers great flexibility in the management and allocation of capital.

Clients can choose between:

• A protected‑capital fund, combining security with controlled growth.
• Six variable‑capital funds for those seeking higher potential returns.

All unit‑linked funds offered by Foyer are managed by the experts at CapitalatWork, renowned for their professional and rigorous approach to asset management.

Plan today for a peaceful retirement tomorrow

Preparing for retirement should not be seen as a burden but as a way of protecting your future and ensuring long‑term quality of life. The earlier you start saving, the more significant the results, both in terms of tax benefits and capital accumulation.

Investing for your later years helps ensure you have a balanced, stable, and more comfortable retirement.

Consequently, it is essential to take action now to gradually build the supplementary income that will allow you to fully enjoy the years to come.