Life Annuity Scale Luxembourg
The life annuity scale defines the coefficients used to calculate the value of the usufruct and the bare ownership according to the seller's age. In Luxembourg, this scale is used to determine the occupancy discount in an occupied life annuity and the amount of the life annuity.
Usufruct Scale by Age Bracket
Official table of usufruct and bare ownership coefficients (article 669 CGI)
| Age of the usufructuary | Usufruct (%) | Bare ownership (%) |
|---|---|---|
| Moins de 21 ans | 90% | 10% |
| 21 à 30 ans | 80% | 20% |
| 31 à 40 ans | 70% | 30% |
| 41 à 50 ans | 60% | 40% |
| 51 à 60 ans | 50% | 50% |
| 61 à 70 ans | 40% | 60% |
| 71 à 80 ans | 30% | 70% |
| 81 à 90 ans | 20% | 80% |
| Plus de 91 ans | 10% | 90% |
How to read this table?
For a seller aged 75 selling a property worth €500,000 as an occupied life annuity:
- 1.Usufruct (right of occupation) = €500,000 × 30% = €150,000
- 2.Bare ownership (value to be paid) = €500,000 × 70% = €350,000
- 3.This value of €350,000 is split between the bouquet and the life annuity
Capitalisation Coefficients for the Life Annuity
Coefficients to convert a capital sum into a monthly life annuity
| Age | Male | Female | Mixed |
|---|---|---|---|
| 65 years | 13.2 | 15.8 | 14.5 |
| 66 years | 12.7 | 15.3 | 14 |
| 67 years | 12.3 | 14.8 | 13.5 |
| 68 years | 11.8 | 14.3 | 13 |
| 69 years | 11.4 | 13.8 | 12.6 |
| 70 years | 10.9 | 13.2 | 12.1 |
| 71 years | 10.5 | 12.7 | 11.6 |
| 72 years | 10 | 12.2 | 11.1 |
| 73 years | 9.6 | 11.7 | 10.6 |
| 74 years | 9.1 | 11.2 | 10.2 |
| 75 years | 8.7 | 10.7 | 9.7 |
| 76 years | 8.3 | 10.2 | 9.2 |
| 77 years | 7.8 | 9.7 | 8.8 |
| 78 years | 7.4 | 9.2 | 8.3 |
| 79 years | 7 | 8.7 | 7.8 |
| 80 years | 6.6 | 8.2 | 7.4 |
| 81 years | 6.2 | 7.7 | 7 |
| 82 years | 5.8 | 7.3 | 6.5 |
| 83 years | 5.4 | 6.8 | 6.1 |
| 84 years | 5.1 | 6.4 | 5.7 |
| 85 years | 4.7 | 5.9 | 5.3 |
Example of a life annuity calculation
Woman aged 75, capital to convert into an annuity: €250,000
Female coefficient age 75 = 10.7
Annual annuity = €250,000 ÷ 10.7 = €23,364/year
Monthly annuity = €23,364 ÷ 12 = €1,947/month
Life Expectancy in Luxembourg
STATEC data used to calculate life annuities
| Age | Men (years) | Women (years) |
|---|---|---|
| 65 years | 18.5 | 21.8 |
| 70 years | 14.8 | 17.6 |
| 75 years | 11.4 | 13.7 |
| 80 years | 8.4 | 10.2 |
| 85 years | 5.9 | 7.2 |
| 90 years | 4 | 4.8 |
Why does life expectancy matter?
Life expectancy determines the probable duration of the annuity payments. A longer life expectancy implies a lower monthly annuity for the same capital.
Luxembourg advantage
Luxembourg has one of the highest life expectancies in Europe, which can favourably influence the calculation of your life annuity.
Frequently Asked Questions about the Life Annuity Scale
What is the usufruct scale for a 70-year-old person?
According to the tax scale in force, the usufruct of a 70-year-old person represents 40% of the property's value, and the bare ownership 60%. This coefficient is used to calculate the occupancy discount in a life annuity.
How is the life annuity calculated using the scale?
The life annuity is calculated by dividing the remaining capital (occupied value minus bouquet) by the capitalisation coefficient corresponding to the seller's age. For example, at age 75 with a capital of €300,000 and a coefficient of 10.5, the annual annuity would be approximately €28,571, i.e. €2,381/month.
Is the life annuity scale the same as in France?
Luxembourg uses scales similar to the French tax scale (article 669 CGI) for the usufruct. However, Luxembourg mortality tables may differ slightly, affecting the precise calculation of life annuities.
At what age is the life annuity most advantageous?
The life annuity becomes particularly advantageous between 70 and 85 years of age. Before 70, the occupancy discount is significant (high usufruct). After 85, the annuity is higher but the payment period is statistically shorter.
Does the life annuity scale change every year?
The tax scale for the usufruct (article 669 CGI) has been relatively stable for several decades. However, mortality tables are updated periodically (roughly every 5 years) to reflect changes in life expectancy.
Calculate Your Life Annuity
Use our simulator to get a personalised estimate based on the scales in force and your situation.