Andorra Pension Guide: CASS Pension, Private Schemes, Retirement Age 2026
Andorra operates a public pay-as-you-go pension system funded by CASS social security contributions. The standard retirement age is 65. Voluntary private pension schemes complement the state system. Here is how pensions work in 2026.
Andorra's pension system consists of a mandatory state pension (CASS general branch) and voluntary private pension schemes. The state pension is a defined-benefit pay-as-you-go system financed by social security contributions from current workers. The private pension system allows individuals to save additionally for retirement with tax incentives. CASS administers the state pension. Compared to Spain, Andorra's contribution rates are lower but the state pension replacement rate is also more modest. CASS contribution rates →
Real-world example: An individual retiring at 65 with 35 years of CASS contributions and average insurable income of €3,000/month would receive a state pension of approximately €1,000-1,300/month (roughly 33-43% replacement rate). Adding a voluntary private pension with monthly contributions of €300 over 20 years could provide an additional €500-700/month in retirement. Compare to Spain where the same contribution history might yield a higher pension but requires significantly higher contribution rates. Personal income tax →
State Pension System
- Retirement age: 65 years (standard), early retirement possible with reduced benefits
- Minimum contribution period: 15 years of contributions to qualify for minimum state pension
- Full pension: 35+ years of contributions for maximum benefit
- Pension formula: Based on average insurable income during the contribution period, multiplied by accrual rate per year
- Cost-of-living adjustment: Pensions are indexed periodically
The state pension replacement rate is approximately 35-45% of pre-retirement income for full-career workers.
Private Pension Schemes
Andorra has a voluntary private pension system. Key features include:
- Individual pension plans: Individuals can open personal pension accounts with licensed fund managers
- Employer-sponsored plans: Companies can establish group pension plans for employees
- Tax incentives: Contributions are deductible from taxable income up to certain limits. Investment returns within the fund accumulate tax-free
- Payout options: Lump sum, annuity, or phased withdrawal at retirement
The private pension market is growing as awareness increases.
Pension Taxation
- State pension: Pension income from CASS is subject to personal income tax at progressive PIT rates (0-10%), with the €24,000/year tax-free threshold applying
- Private pension: Contributions are tax-deductible up to annual limits. Investment returns within the fund are tax-free. Pension payouts are taxed as income at PIT rates
- Lump sum withdrawals: May be subject to different tax treatment depending on circumstances
For pensioners with only state pension income below €24,000/year, no PIT is due.
Early and Deferred Retirement
- Early retirement: Available at reduced benefit levels from age 60 (or earlier in certain cases) with reduced accrual
- Deferred retirement: Working beyond age 65 increases the pension amount through higher accrual rates
- Partial retirement: Possibility to combine part-time work with partial pension receipt
Can expatriates receive Andorran state pension?
Yes. Individuals who have contributed to CASS can receive the state pension even if they live abroad. Bilateral social security agreements may allow aggregation of contribution periods.
Can I transfer my foreign pension to Andorra?
There is no specific mechanism for transferring foreign pension rights to Andorra. Check with both CASS and your home country's pension authority for options regarding bilateral agreements.