What is a private pension contract (111bis/111ter)?

A 111bis retirement savings plan is a savings product designed to help you prepare for retirement while enjoying tax benefits. Contributions are deductible from taxable income within certain limits, which reduces the amount of tax you have to pay.

Retirement savings are an investment available to people aged 60 and over, designed to supplement their income during retirement. There are two options:

• Performance: savings are invested in a selection of investment funds, offering higher potential returns but subject to market fluctuations.
• Security: a minimum amount is guaranteed at the end of the contract, offering a more cautious approach.

If the holder leaves Luxembourg, it is possible to continue the investment, with access to the capital at age 60, although tax deductibility may vary depending on the country of residence. It is also possible to stop monthly payments and leave the capital to grow until age 60, at which point it will be fully accessible.

In the event of death before the age of 60, the designated beneficiaries, children, partner or other family members will receive the accumulated capital, providing a solid safety net for loved ones.

The 111bis retirement savings plan is therefore a way to prepare for retirement with peace of mind, while offering financial protection for the family and an immediate tax advantage.

Updated on: 17/02/2026