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Retirement savings scheme

A retirement savings scheme is typically paid out as a lump sum, which you can spend whenever you want. That way, you can receive a larger amount instead of regular benefits. You can also choose to have your savings paid out in several smaller portions – and still make contributions to the scheme.

Retirement savings are paid out as a lump sum – or in smaller portions. That way, it is up to you how you want to spend your savings, giving you the freedom to invest in larger items.

Learn more about retirement savings (PDF) (In Danish only)

Learn more about pension payout age (PDF) (In Danish only)

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Advantages of a retirement savings scheme

  • You can have your savings paid out from the date you reach your pension payout age – and 20 years ahead.
  • You can continue to make contributions – even though you have received a payout.
  • The return is taxed at just 15.3% per year.
  • Benefits are tax free, as your contributions are not tax deductible.
  • Benefits are not set off against state retirement pension benefits.

Disadvantages of a retirement savings scheme

  • Contributions are not tax deductible.
  • If you or someone in your household receives public benefits which are dependent on your income, for example anticipatory pension or state retirement pension, these benefits may be reduced if you are making contributions to a retirement savings scheme instead of to an annuity pension scheme or a life annuity.

Facts

It is up to you how you want your retirement savings to be paid out, which may be an advantage if you want to travel, buy a new home, a car or a holiday house – or if you want to use the money as a supplement to your state retirement pension benefits.

  • How much can you contribute?

    The maximum amount you can contribute per year is DKK 5,200, and the contributions are not tax deductible.

    If you have five income years or less to your state pension age, you can contribute up to DKK 48,000 per year.

    If you have more than one retirement savings scheme, you can contribute a maximum of DKK 5,200 or DKK 48,000 in total.

  • When can you have your savings paid out?

    Retirement savings can be paid out from the date you reach your pension payout age, but you can choose to postpone your payout for a period of up to 20 years after this date. The payout is tax free, as your contributions are not tax deductible.

    If you want to have your retirement savings paid out before you reach your pension payout age, the payout will be subject to 20% tax.

  • How are your savings paid out?

    Your savings can be paid out in several ways. It can be paid out when you take early retirement or retire. You can also have your savings paid out in smaller portions. You can continue to make contributions to your retirement savings scheme, even though you have received a payout.

  • Savings balance protection.

    You have savings balance protection, meaning that your beneficiaries will receive your savings if you die before you receive all your benefits.

  • Personal scheme or contributions through your employer?

    A retirement savings scheme can be set up by you personally or through your employer.

  • Prices and conditions

    The price of a retirement savings scheme depends on various factors:

    • how you want your savings to be invested
    • the amount of contributions per month or year

Annuity pension scheme

Maintain your standard of living in retirement with fixed monthly annuity pension benefits.

Learn more

Life annuity

A monthly income for the rest of your life, so that you know your money will not run out.

Learn more

All payout options

Are you the cautious type or do you chase the highest possible return? Whether you want to invest your savings yourself or prefer to leave it to our experts, we have a solution that suits your needs.

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A lot can happen in a year. Does your pension scheme fit your current life situation?