Since 1 January 2019, the supplementary pension scheme has been available to self-employed and independent professionals living in Luxembourg. Through a life insurance policy, it’s now possible to build up supplementary pension savings while taking advantage of tax benefits. An insurance company focused on your needs, our partner Cardif Lux Vie has developed a specific life insurance solution to help self-employed and independent professionals prepare for retirement: OptiLib.
What is OptiLib?
OptiLib is both a life insurance policy and pension savings scheme. It’s a product dedicated to the needs of self-employed professionals and freelancers
What are the benefits of OptiLib?
- take advantage of tax benefits;
- reduce your expenses;
- prepare for retirement: at the end of the policy, the capital will usually be exempt from income tax;
- protect your loved ones: in the event of death, any money you’ve invested is passed on to your assigned beneficiaries;
- attractive returns (2.5% gross in 2017) thanks to our General Fund.
Retirement investing for the self-employed and independent professions: how do I sign up?
- you set the amount you’re capable of investing each year in advance;
- you divide the amount invested between life insurance and retirement savings;
- you determine how often you make payments;
- every year, you choose the type of funds you want to invest in, according to your risk profile;
- you define the risks you want to cover: death, invalidity, accident.
Who is eligible for an OptiLib policy?
OptiLib is designed for self-employed professionals and freelancers, as well as members of the Luxembourg Chambers of Commerce, Agriculture or Trade.
You must also:
- live in Luxembourg;
- be covered by Luxembourg social security.
Individuals can also obtain tax deductions! Fully protect yourself and your loved ones with other life insurance solutions. They are tax-deductible and also help you lower your tax bill.
Jean is from Germany. He’s 35 and is studying dentistry. He’s just moved to Luxembourg and opened his very first dental surgery. By talking to his BGL BNP Paribas advisor, he’s identified his requirements. As a self-employed professional, he wants to efficiently reduce his expenses and prepare for retirement. His advisor therefore suggested OptiLib, which meets his exact needs.
Frequently asked questions
No, this is defined according to your needs.
Subject to 20% withholding tax and a 0.9% tax on premiums paid, you can deduct amounts invested under an OptiLib policy up to a maximum of 20% of your net annual professional income.
* Tax allowances are granted to Luxembourg residents and to “equivalent” non-residents.
* Subject to certain conditions available at bgl.lu or in your BGL BNP Paribas branch
* As the tax deductibility of interest on OptiSave and OptiKids consumer loans is covered by the same article, the deductible amount cannot exceed EUR 672 (Article 109 LIR).
* Tax deductibility varies based on the personal situation of each client and is subject to change.