1. Get an individual pension if you plan to stay here

Luxembourg’s pension system is made up of three pillars: a legal pension funded by the state, an employer pension funded by your employer and an individual pension that is self-financed. If you plan to stay in Luxembourg for more than 10 years, I recommend enquiring about an individual pension.

2. Ask your employer if they offer a pension plan

One of the first things you need to do when starting a new job in Luxembourg is to ask your employer about the pension plan they offer. In some cases, you will be able to make additional contributions from your salary that are tax deductible.

3. Request a lump sum payment if you leave Luxembourg

If you stay in Luxembourg temporarily and then relocate to work in another country, you may be eligible to receive the retirement savings accumulated in the employers pension plan from your personal contributions and employer contributions without any limitations, as long as you have vested rights.

An alternate version of this article first appeared in Delano’s 2023-2024 Expat Guide.