Pension Reform in Luxembourg

The Luxembourg government, after discussions with the social partners, has presented key measures to secure the pension system:

• Retirement age will remain at 65.
• Early retirement from age 57 will continue.
• Longer contribution periods required for early retirement at 60 – gradually +8 months (2026–2030).
• Contribution rate to rise to 25.5% from 2026 (8.5% each from employees, employers, and the state) – the contribution ceiling will remain unchanged.
• Tax allowances for private retirement savings (3rd pillar) to increase from €3,200 to €4,500.
• Planned tax incentive for people who, despite being eligible for early retirement, continue working until 65.

Goal: To stabilize the Luxembourg pension system in the long term – without raising the statutory retirement age.
Next review: 2030