Employees in Luxembourg are usually aware that the pension system is based on the so-called Three Pillars.

The 1st pillar is made up of public pensions, paid by the Caisse Nationale d'Assurance Pension (CNAP). It is financed by the social contributions levied on all salaries, as well as by all employers and the State.

The 2nd pillar is optional and depends on whether employers have put a voluntary contribution system in place as part of their employee benefits scheme for their staff.

The 3rd pillar is made of personal voluntary contributions. Everybody can decide to invest his/her money, for example in a pension savings plan, some of whom are deductible in accordance with article L.I.R. 111bis.

As you may guessed, iPension is only about 1st Pillar.

iPension is intended for employees in Luxembourg who have started their career either in Luxembourg, France, Germany or Belgium. In only a few seconds, they can obtain a realistic simulation of the pension that the Luxembourg CNAP will pay them.