🇱🇺 Luxembourg·OECD Pensions at a Glance · 2025

Will your pension be enough in Luxembourg?

Type your salary. See what a full career in the pension system pays you back the month you stop working.

I earn € a year before tax in Luxembourg.

The OECD average wage in Luxembourg was €74,296 in 2024, the salary shown. Wages have grown since, so a salary from today places you slightly higher on this scale than you really are.

Share of your take-home pay your pension replaces

87.7%

You keep most of your lifestyle.

Few pension systems anywhere replace this much of take-home pay; the OECD average at your pay level is 63.2%. The mandatory schemes do the heavy lifting, as long as the full career they assume actually happens.

After a full career, the pension system in Luxembourg would replace 87.7% of your take-home pay from age 62. Before tax, that is about €4,681 a month, against €6,191 today.

The gap in money

From payslip to pension.

Before tax, the pension replaces 75.6% of your pay. After tax it replaces 87.7%, because pensioners in Luxembourg pay less tax and fewer social contributions than workers. Both figures are in today's money.

Today

€6,191

per month, before tax

Your salary before tax.

Your pension

€4,681

75.6% of your pay, before tax

Paid from age 62, in today's money.

The gap

€1,511

per month, before tax

What your own savings would have to pay to keep your full income.

The risk is the career, not the system: years out of work, part-time or abroad all come off this number. Covering €1,511 a month yourself takes about €453,206 of savings by age 62, at a 4% withdrawal rate. Most people need less than their full salary once work costs and pension contributions stop, but this is the size of the job.

In today's money: the OECD models pensions relative to earnings at retirement, which rise with average wages. A 4% withdrawal rate means saving 25 times the yearly gap.

What your pay changes

Higher earners get a smaller share back.

The OECD models three pay levels in Luxembourg. At 0.5× the average wage the pension replaces 97.2% of take-home pay; at the average, 87.7%; at twice the average, 79.4%. A gap of 17.8 points: the system leans toward low earners.

Net replacement rates from OECD Table 4.4. Tap a level to use its salary.

38 OECD countries

Same pay, 38 pension systems.

Every OECD country, for someone earning 1× their own country's average wage, as you do. The pension system in Luxembourg ranks 5 of 38.

OECD avg 63.2%

🇳🇱Netherlands

96.0%

🇹🇷Türkiye

94.4%

🇵🇹Portugal

92.7%

🇬🇷Greece

88.5%

🇱🇺Luxembourg

YOU

87.7%

🇦🇹Austria

86.8%

🇪🇸Spain

86.3%

🇲🇽Mexico

79.6%

🇮🇹Italy

79.0%

🇭🇺Hungary

78.0%

🇩🇰Denmark

77.1%

🇸🇰Slovakia

76.3%

🇨🇴Colombia

73.1%

🇸🇮Slovenia

71.3%

🇫🇷France

70.0%

🇨🇷Costa Rica

69.5%

🇸🇪Sweden

66.3%

🇫🇮Finland

65.7%

🇨🇱Chile

61.3%

🇧🇪Belgium

61.1%

🇨🇿Czechia

55.9%

🇳🇴Norway

54.9%

🇮🇱Israel

54.4%

🇬🇧United Kingdom

54.2%

🇩🇪Germany

53.3%

🇮🇸Iceland

53.3%

🇦🇺Australia

53.0%

🇱🇻Latvia

52.2%

🇺🇸United States

51.3%

🇨🇭Switzerland

47.5%

🇨🇦Canada

45.1%

🇳🇿New Zealand

43.8%

🇯🇵Japan

42.4%

🇵🇱Poland

40.6%

🇰🇷South Korea

38.9%

🇪🇪Estonia

37.8%

🇮🇪Ireland

33.7%

🇱🇹Lithuania

28.2%

Net replacement rate OECD average (63.2%)

Men, mandatory schemes, OECD Pensions at a Glance 2025 Table 4.4, placed at your multiple of each country's average wage.

Worth knowing

Three numbers behind yours.

Your pension age

The normal pension age the OECD uses for someone who starts work at 22 today. The OECD average is 66.4.

OECD average earner

63.2%

Share of take-home pay replaced for an average earner across the 38 countries. In Luxembourg: 87.7%.

Best and worst

96.0% · 28.2%

Netherlands replaces 3.4 times the share Lithuania does, for the same average earner with the same full career.

Where does your salary rank in Luxembourg?

See your income against every household in the country.

→

See what it takes to cover €18,128 a year yourself

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Frequently asked questions

For an average earner who starts work at 22 and works a full career, the mandatory pension system in Luxembourg replaces 87.7% of take-home pay and 75.6% of gross pay, according to OECD Pensions at a Glance 2025. That ranks 5 of the 38 OECD countries; the OECD average is 63.2%.

The OECD puts the average wage in Luxembourg at €74,296 a year (2024). A full career at that wage earns a pension of about €4,681 a month before tax in today's money, 75.6% of gross pay, paid from the normal pension age of 62.

At 0.5× the average wage the pension replaces 97.2% of take-home pay; at twice the average, 79.4%. That gap of 17.8 points means the system leans toward low earners.

For someone who starts work at 22 today, the OECD models the normal pension age in Luxembourg as 62, against an OECD average of 66.4. The replacement rates on this page assume retiring at that age.

The OECD figure of 87.7% for Luxembourg counts mandatory schemes only, including workplace schemes that cover nearly all employees. Anything you save yourself, in a personal pension or an ordinary investment account, comes on top of it, and it is the part you control.

It is your pension after tax and social contributions divided by your take-home pay before retirement. The OECD calculates it for a worker who starts at 22 and works a full career to the normal pension age. A rate of 87.7% means that for every 100 you take home while working, you keep about 88 as a pensioner.

OECD Pensions at a Glance 2025: net replacement rates from Table 4.4, gross from Table 4.1, voluntary schemes from Table 4.5, average wages from Table 7.5. The OECD models a worker who starts at 22 in 2024 and works a full career to the normal pension age under the rules legislated today, in mandatory schemes (including workplace schemes that cover nearly all employees). Between the three pay levels the OECD models, this page assumes the pension grows in a straight line with pay. Real careers with gaps, part-time years or time abroad produce lower pensions.

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