Although it’s great news that life expectancy is rising, this will put huge pressure on the state pension system in the future. Financing of pensions has become a public debate, not only in Luxembourg, but well beyond its borders. On a long term, the amount of your statutory pension will be much less than your salary.
It is therefore essential to act and prepare for your retirement now. Here are some key points to consider if you want to ensure a well-funded retirement.
Benefit from tax advantages
Did you know that the law currently allows many interesting tax advantages? Each year, the premiums for your pension plan reduce your taxable income. You can deduct them as special expenses:
· Up to €3,200 per year of premiums paid into a personal pension plan
· Up to €1,200 per year in personal contributions paid under your employer’s supplementary pension scheme. Check with your employer to see if they have subscribed you to a supplementary pension. This would represent a substantial benefit in kind and will help you finance your retirement.
Hence, during the term of your contract, you benefit each year from substantial tax reduction by deducting the amount of premiums paid. Why not have fun today, indulge in a good restaurant or do a family trip, while preparing for your retirement?
Start saving now!
The earlier you prepare for retirement, the higher the amount of capital you will save. Starting to prepare at the beginning of your professional life is wise, as the state pension may not be sufficient on the day you retire. On current trends, your income would fall sharply.
Make the right choice
Now that you’re convinced, here are the different possibilities available to you.
With the personal pension plan easyLIFE Pension, offered by LALUX, individuals can choose between two formulas:
· The Performance formula for a potentially higher return - The Performance formula is a “unit-linked” pension plan in which your pension savings can be invested in a range of mutual funds. You can opt for different strategies that either target high levels of growth or more steady accumulation.
· The security formula, for guaranteed savings – The security formula offers a classic old-age pension scheme with guaranteed returns and a minimum interest rate for your savings with the possibility of profit-sharing.
You are self-employed or a liberal professional?
· lalux-Safe Future is a product specifically tailored to the tax breaks recently granted to the self-employed and liberal professionals. Guarantees can be adjusted to your individual needs, thus enabling you to save for your retirement and ensuring a secure future for your loved ones.
Calculate your pension tax gain using the LALUX simulator. With just a few clicks, this simulator allows you to estimate your tax gain thanks to easyLIFE Pension!
Make your tax gain simulation now!