> ## Knowledge Base Index
> Fetch the complete knowledge base index at: https://help.taxx.lu/sitemap.xml
> Use this file to discover available pages before exploring further.
> Pure-Markdown content can be obtained by appending a '.md' suffix to the content URLs listed in the sitemap (without the trailing slash).

# What are the different types of pension insurance pillar?

# In Luxembourg, there are 3 pillars of pension insurance:

### 1st pillar: Mandatory social security system

| Being employed in Luxembourg also means that you're automatically contributing to the public social security system. A part of that contribution is used to fund a public pension plan of which every current or former Luxembourgish employee can benefit from when reaching the retiring age of 65 years. At that age you'll be granted a public pension. You can find ${color}[#ff0000](*the sum of those contributions*) on your annual salary certificate\*. 
| Maximum deduction: none.

### 2nd pillar: Supplementary pension scheme

|| This plan is a mechanism set up by certain companies. It is financed mainly by your employer. In addition to your employer's contributions, you also have the option of making a personal contribution.
|| The deductible amount is shown on your salary certificate under "Supplementary pension scheme (LRCP / RCP)".
|| Maximum deduction: €1,200 per year per taxpayer.

### 3rd pillar: Private pension plan

||| This private pension plan contract can be taken out on your own initiative. It allows you to reduce your tax liability and benefit from additional income in the future.
||| The deductible amount is shown on the annual insurance tax certificate provided by your insurance company.
||| Maximum deduction: €4,500 per taxpayer