It’s Beautiful to Dream … of a Golden Retreat

It’s beautiful to dream of a golden retirement and to enjoy life after a long period of work. Many people want to realize in this new phase of their lives a lot of projects for which they did not have the time during their working life.

But too often all beautiful projects fail for lack of financial means. This is why one has to realize that the amount of his legal pension will be much lower than the salary. For the private sector, the legal rent varies between 60% and 70% of the last salary. Faced with the demands of modern life, however, it is hard to settle for less at the time of retirement.

The equilibrium of pension plans is regularly questioned and the near future is hardly any more reassuring. Uncertainties in terms of demographic change, the deterioration of the labor market and the deficit of economic growth are clearly reflected in the balance of pension plans. In addition, we must not forget that modern medicine makes it possible to live longer, to be in good shape and to benefit more from its life annuity.

The legislator understood that private initiative was the best solution and introduced in 2002 a legal framework for a pension scheme: by the Grand-Ducal Regulation of 25 July 2002 implementing Article L.I.R. 111bis, tax incentives have been put in place. These had – and still have – as a goal to encourage individuals to build an individual pension savings.

However, over time, it turns out that these incentives no longer meet the requirements of a successful foresight and an adaptation has become unavoidable. Indeed, the bill on the 2017 tax reform provides for interesting changes for the deductibility of insurance premiums, particularly in the context of old-age pension.

You, as every taxpayer, certainly want to pay less taxes and inform you about the changes brought by the 2017 tax reform? In order to shed light on the complexity of taxation and answer all the questions relating to it

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