An annuity pension scheme gives you the financial freedom to maintain your standard of living, even though your active working life has ended. You will receive a fixed monthly amount of benefits for a period of up to 30 years. Annuity pension benefits can also be a supplement to a life annuity, for example, and your state retirement pension benefits.
An annuity pension scheme is an attractive savings option that can help you maintain your standard of living, even though you are no longer working. You will get a fixed monthly amount of benefits from the date you retire and for a period of at least ten years.
Learn more about annuity pension (PDF) (In Danish only)
Advantages of an annuity pension scheme
- An annuity pension scheme gives you a fixed monthly amount of benefits for a period of ten to 30 years.
- Contributions are deductible against your personal income tax – also against top-bracket tax.
- You pay a favourable pension returns tax rate of 15.3% per year on the return on your annuity pension scheme.
- You have savings balance protection, meaning that your beneficiaries will receive your savings if you die before you receive all your benefits.
- You can take out an insurance cover giving you the right to waive contributions (waiver of contribution) if your earning capacity is reduced. This means that your pension savings will continue to grow without you having to make contributions yourself.