People here in Luxembourg feel quite comfortable and safe with the state’s pension system, Pletsch explained. As they trust the strength of the social security programme, they don’t really think about retirement.

But it may become a more important subject in the future. As an increasing proportion of the population gets older, there will not be enough money to continue paying pensions in the years to come. Therefore, it’s important to raise awareness among people who might have other priorities at present and are not thinking about their retirement plans.

Start early and diversify. And don’t put all your eggs in the same basket

Charles Pletsch, vice president and head of business unit, Spuerkeess

Another option for boosting interest in retirement planning could be to increase the tax deduction that a person would benefit from when contributing to a private pension fund, said the Spuerkeess vice president.

Moreover, in terms of other possible steps to help plan for retirement, Pletsch mentioned that people in other countries invest in stocks or similar products. However, investing in stock markets is not currently part of the “mentality” in Luxembourg or in Europe.

Concrete steps

A key first step of preparing for retirement is to purchase a house or apartment, said Pletsch. This way, it’s no longer necessary to pay rent and money can be put aside for other matters. In fact, .

In addition to the Luxembourg state’s pension system--which is already very good, Pletsch noted--banks and insurance companies also offer the option of a private pension fund. At Spuerkeess, this programme is called the . It allows people to save money for their retirement, while benefitting from a tax deduction of up to €3,200 annually.

Another product that the Spuerkeess offers to help people save money over the long-term, besides the classic savings account, is . This programme allows a person to choose specific funds to invest in, as well as the amount, every month.

Two main takeaways?

Start early and diversify, said Plestch. Consider all the options--for example, real estate, the state pension, private pension schemes or stocks--and don’t put all your eggs in the same basket. In this manner, you can build your retirement with several “bricks” that complement each other.