Receive your pension as a lump sum with a retirement savings scheme

With a retirement savings scheme, you can receive your savings as a lump sum. You decide when you want the money – as long as you do not want the money before you reach the earliest retirement age for your pension scheme. And the payment is tax exempt.

Pension with lump sum payment gives you freedom

With a retirement savings scheme, you will receive a lump sum which you are free to use in any way you like. This gives you the freedom to, for instance, travel around the world, buy a new car or renovate your home.

You will get:

  • a good supplement to your other pension savings
  • your pension savings as a lump sum
  • a tax-exempt benefit

How much can you contribute to a retirement savings scheme?

It depends on how many years you have left until state pension age:

  • If you have more than five years left until state pension age, you may contribute an annual amount of DKK 5.200.
  • If you have five years or less left until state pension age, you may contribute an annual amount of DKK 48.000.

Your contributions to retirement savings are non-deductible. In turn, you do not have to pay tax on your pension benefits.

Currently, we offer retirement savings if you have a company pension scheme. Call us for more information about your specific options.

Your benefits are tax exempt

You do not pay any tax on benefits from your retirement savings scheme – as long as the payment is not made before you reach the earliest retirement age for your pension scheme.

If you want to cash in all or part of your retirement savings before that, you have to pay 20 per cent tax to the Danish State plus a fee.

Your contributions are non-deductible

When you make contributions to a retirement savings scheme, you may not deduct your contributions from your taxable income.

You pay 15.3 per cent tax on the investment return on your pension savings.

Please note that the latest time for establishing a retirement savings scheme is 20 years after your earliest pension benefit age.

Your contributions are non-deductible

When you make contributions to a retirement savings scheme, you may not deduct your contributions from your taxable income. 

You pay 15.3 per cent tax on the investment return on your pension savings.

Please note that the latest time for establishing a retirement savings scheme is 20 years after your earliest pension benefit age.

More about retirement savings

Your family will receive your retirement savings if you die before your savings have been paid out in full or in part – regardless of whether you have retired or not.

Such benefits are subject to tax. If you have nominated your spouse or registered partner as beneficiary for your pension scheme, he or she does not have to pay estate tax.

You can build a more solid safety net under your and your family's life by linking different kinds of insurance to your pension scheme. This could, for instance, be children's pension or cover for reduced earning capacity.

The purpose of this page is to give you an overview

The information on this webpage is general. Contact us for personal advice based on your individual situation