Baloise Luxembourg is modernising its Pension Plan, the supplementary pension scheme contract by offering three management profiles adapted to each type of investor and integrating ETFs into the range of funds available. The objective is clear: to make investing for retirement simpler and more transparent by combining global diversification and personalised support.
In Luxembourg, the statutory pension rarely covers the entirety of your last salary. Building up additional capital allows you to maintain your standard of living once you retire. By starting early, even small, regular amounts can generate significant capital over twenty or thirty years. Retirement savings are therefore an essential tool for anticipating the unexpected and preparing for the future with peace of mind.
The Pension Plan supplementary pension scheme, known as “111bis”, offers attractive tax deductions. The premiums paid are deductible from taxable income up to €3,200 per year. This provision allows you to immediately reduce your tax liability while building up long-term savings. Payments are flexible: you can choose monthly or annual contributions and adapt the amount to your budget. This flexibility is ideal for adapting to changes in your family or professional situation. The contract has a minimum term of 10 years, and the accumulated savings can be received between the ages of 60 and 75. At the end of the contract, you decide whether you prefer to receive a lump sum or opt for a life annuity. The applicable taxation will depend on your place of residence at the time you receive your savings.
The main innovation of Pension Plan lies in the introduction of three management methods that adapt to your level of involvement and knowledge of the financial markets.
Discretionary management: you delegate the management. Experts are responsible for selecting funds, adjusting allocations, and regularly rebalancing the portfolio. This option is suitable for people who lack time or financial knowledge.
Profile-based management: this is the contract’s flagship new feature. Your portfolio is made up of a selection of funds and ETFs managed by Amundi. Baloise will help you determine the right strategy for your profile and will monitor the distribution annually, if necessary. This formula is a good compromise between autonomy and professional support.
Self-directed management: this is for experienced investors who want to build their own portfolio. You choose from a range of vehicles, including ETFs, and adjust the allocation according to your convictions. This freedom comes with increased responsibility: you need to regularly monitor market developments and diversify your investment.
ETFs (Exchange Traded Funds) are the second major innovation of the contract. These exchange-traded funds replicate the performance of benchmarks such as the MSCI World, S&P 500, or Euro Stoxx 600. They offer instant access to broad diversification, as each ETF comprises dozens or even hundreds of companies across multiple sectors and geographical areas. Management fees are usually lower than those of traditional funds. Transparency is another advantage: the composition of the ETF is published regularly, so you know exactly where your money is invested.
Baloise relies on Amundi, the European leader in ETFs, which manages more than €287 billion in assets under management. This collaboration ensures recognised expertise and access to high-performance funds. The ETFs offered cover the major global indices and also include ESG (Environmental, Social and Governance) funds for investors concerned about the impact of their savings. Investing via ETFs thus makes it possible to combine the search for returns, controlled costs, and sustainable commitment.
However, as with any financial investment, ETFs involve risks. Markets can fluctuate, the value of securities can go up or down, and principal is not guaranteed. Past performance is not indicative of future results. This is why it is essential to define your profile and adapt the share of stocks to your risk tolerance.
Setting up a Pension Plan is simple. It all starts with an interview with an agent to assess your situation, your retirement horizon, and your goals. Based on this assessment, you complete a questionnaire that determines your investor profile. You then choose your management method and plan your payments according to your budget. The amounts can be adjusted over time, and the allocation is revised according to changes in your personal situation.
The contract is aimed at both Luxembourg residents and cross-border workers making a tax declaration in Luxembourg.
With three management profiles and ETF integration, Pension Plan is a modern and accessible solution for building your retirement. Whether you are a novice, looking for support or an experienced investor, this contract allows you to define a strategy adapted to your situation. The flexibility of deposits, tax advantages, and the possibility of investing responsibly are additional advantages. By starting today, you are putting all the odds in your favour to prepare for your financial future with peace of mind. To find out more and get a personalised quote, visit the Baloise website.
