Arrived at maturity (usually at pension age) the pension savings plan will start paying out benefits. The payout is possible as a combination of the following two options: your can have the benefits of your pension savings plan paid out as a monthly payment which will run until death; or as a single one shot payment (the one shot payment can constitute maximum 50% of the contracted pension amount). And in case there are still funds in the scheme at the moment of death, the rest of the saved amount will be paid out to the beneficiaries stipulated in the contract (spouse, children, grandchildren…).
Tip: Given the uncertainties around the future of pensions in Europe, this savings product should be high on your priority list!
The latest luxembourgish pension reform modulates future pensions in a way that will either reduce pensions paid out or oblige the insured to work at least 3 years longer; wouldn’t it be nice not to have to make this choice?