The average supplementary pension payment in Luxembourg was just over €6,000 per month
Sandra Seitamaa, Unsplash
The joint response from Martine Depres, Minister of Health and Social Protection, and Gilles Roth, Minister of Finance, provides data on pension benefits and the evolution of supplementary pension schemes in Luxembourg.
As of 2023:
- 913 people received payments from second-tier pension schemes;
- 697 of them opted for one-off capital, while 219 receive monthly annuities.
The average payouts for these schemes vary considerably:
- The average one-off capital amounted to €69,907.
- The average monthly rent is €6,285.
Despite the relative stability in the number of businesses offering pension schemes, the overall number is growing slowly. Since 2014, an average of 140 new companies have registered each year, but this has fallen to 57 new entrants by 2024.
Access to supplementary pension schemes varies by industry:
- In the financial sector, 29.07% of companies offer pension programmes to their employees.
- On average across all industries, only 6.2 per cent of employers provide such schemes.
In the financial sector, 56.19 per cent of employees have access to additional pension protection, significantly higher than the overall level of 14.38 per cent.
According to the tax authority, about 73,000 households made contributions to tertiary programmes in 2022. However, accurate statistics on beneficiaries remain unavailable due to the lack of differentiation of data on payments by different sources of income.
Second- and third-tier pension schemes are an important element of social protection in Luxembourg, but their prevalence and accessibility remain uneven. The government is considering measures to optimise these schemes to make them more accessible to a wide range of workers.
