FAQ – get answers

To the most frequently asked questions about your pension scheme

What are administrative costs?

All pension schemes charge administrative costs, which include expenses for operating and maintaining IT, labour, rent and postage.

With-profits pension

With-profits pension is a pension scheme where interest on the savings is the rate of interest on policyholders' savings. The administrative costs typically consist of a fixed monthly fee and a percentage of the contribution.

This means that if you contribute DKK 1,000 a month, you will pay the same costs regardless of whether your accumulated savings are DKK 10,000 or DKK 1,000,000.

LinkPension and VækstPension

For LinkPension and VækstPension, the administrative costs depend on the amount of the savings. For both schemes, the administrative costs are composed of a fixed monthly fee, a percentage of the contribution*) and a per mille of the amount of the savings.

*) For certain Link schemes established before 1 May 2003, no costs are charged of the contribution.

How do I change the nomination of beneficiaries

If you want to change your nomination of beneficiaries, you can:

  • log on to Netpension and change the nomination of beneficiaries right away through our self-service system
  • read more and download the beneficiary nomination form Who will inherit your pension.

You can also call us on +45 70 33 99 99 and ask one of our advisers to send you the beneficiary nomination form.

Can I terminate my pension scheme and get the money now? What does it cost?

Most pension savings can be paid out before the agreed retirement date. If your contributions have been tax deductible and you have not yet reached the age of 60, you have to pay a fee of DKK 1,845.00 (2019) and 60 per cent in government tax. 

If you have LinkPension, through which you have made your own investments in shares or bonds, please note that some funds charge selling costs. On the rate of return page, you can click on the fund in which you have invested and check whether your funds charge any selling costs.  

If you have a pension scheme established through your employer, certain restrictions might prevent you from cashing in your savings. This also applies if you have a pension scheme which is only payable if you are alive. If you have any doubts as to what applies to your scheme, please call us on +45 70 33 99 99.

What does it mean that part of my savings is exempt from pension investment returns tax?

On 1 January 1983, tax was introduced on pension investment returns. This means that the part of your pension savings which was accumulated before 1 January 1983 is exempt from pension investment returns tax. 

Velliv calculates pension investment returns tax of the amounts accumulated after 1 January 1983 and of the interest on the amounts accumulated before 1 January 1983. 

You can see the current rate of interest on policyholders' savings before tax here. 

When you cash in your pension, you have to pay taxes as normally – regardless of whether your savings are exempt from pension investment returns tax.

Do I have to inform you if I change occupation?

Your occupation is only relevant for your pension scheme if you have taken out cover for reduced earning capacity. This is because the price of such insurance cover depends on your occupation. If you change occupation, you have to fill in the form and send it to us. You can also call us on +45 70 33 99 99.

Can I transfer my pension scheme to another pension company/bank? What does it cost?

Some pension schemes can be transferred to another pension company or a bank. If you are under the age of 60, there will be a fee of DKK 1,845.00 (2019). 

If you have LinkPension, through which you have made your own investments in shares or bonds, please note that some funds charge selling costs. 

On the rate of return page, you can click on the fund in which you have invested and check whether your funds charge any selling costs.  

If you have a pension scheme through your employer, you cannot transfer it. If in doubt, please call us on +45 70 33 99 99.