Working as a pension holder

Yes, you can still work as a pension holder. However, you need to distinguish between several situations:

• Working while drawing an old-age pension (from age 65).
  The amount of your old-age pension is not affected if you are engaging in an employed or self-employed activity while receiving your old-age pension (from age 65).
• Employed activity while drawing an early old-age pension (between 57 and 65)
  Employed or self-employed activity while drawing an early old-age pension (between 57 and 65) may have an impact on the amount of the pension. Details are given below.
• Professional activity while in receipt of an invalidity pension
  Invalidity pension holders may engage in employed or self-employed activity, provided that the annual income withdrawn does not exceed one third of the annual minimum social wage.

If this amount is exceeded, the invalidity pension will be withdrawn. Amounts unduly paid must be repaid.

Neither the income nor the number of hours worked are taken into account when drawing an old-age pension at 65.

Additional income is taxable. Any questions on this subject should be addressed to the Luxembourg Tax Office, as the CNAP has no jurisdiction in this area.

If the professional activity is carried out in Luxembourg, the income is subject to the deduction of pension insurance, health insurance and long-term care insurance contributions, as well as withholding tax.

Contributions paid to pension insurance as a result of a professional activity in Luxembourg while in receipt of an old-age pension (at age 65) are reimbursed annually on request, in accordance with Article 178 of the Social Security Code.

It is possible to work and receive an early old-age pension from the age of 57.

However, unlike the old-age pension at 65, the early old-age pension is reduced or withdrawn if the ceiling is exceeded.

Self-employed activity:

Annual income from self-employment may not exceed one-third of the minimum social wage.

If this amount is exceeded, the early old-age pension is withdrawn. Amounts unduly paid must be repaid.

A recent ruling by the Constitutional Court declared the aforementioned legal provisions to be unconstitutional. The CNAP is therefore not currently making any such pension withdrawals. Further information on this subject can only be provided following future legislative amendments establishing a new legal basis for dealing with the issue in question.

Employed activity:

• If annual income does not exceed one-third of the minimum social wage, the early old-age pension is not reduced.
• If annual income exceeds one third of the minimum social wage, without exceeding the ceiling set at the average of the five highest annual contributory incomes during the insurance record, the early old-age pension is reduced if the sum of the pension and income exceeds this ceiling.
• If annual income exceeds the average of the five highest annual pensionable incomes during the insurance record, the early old-age pension will be refused or withdrawn.

When the pension holder reaches the age of 65, their pension is recalculated on the basis of the contributions they still paid while receiving the pension. This recalculation results in an increase in the proportional increases.

The survival pension is reduced if, together with personal income (professional activity, replacement income, personal pension or accident allowance), it exceeds a threshold set by law.

This threshold corresponds to €3,822.59 gross per month based on the current index (as at 01.01.2025).

If the survivor has children for whom baby years have been registered or a child-raising pension is in progress, this threshold is increased by 4% for each child. If there are children receiving an orphan pension, the threshold is increased by 12% for each child.

If the survivor carries out a professional activity or receives a replacement income, an allowance of €1,698.93 gross per month based on the current index (as at 01.01.2025) is applicable.

If, on the other hand, the survivor receives a personal pension, this allowance does not apply.

The receipt of an accident allowance is also subject to reduction provisions.

Yes!

Pension holders are obliged to declare to the CNAP any information relating to their professional situation, i.e. whether they are continuing or resuming a professional activity, and whether they are receiving any benefits likely to lead to a reduction in their pension.