Pension types

There are different types of savings you can use when putting money aside for your pension. You should continuously adjust your pension so that it suits your life situation.

Annuity/state pension in Denmark

Normally you are qualified to receive state pension once you reach the pension age. State pension is paid to you as a lifelong payment. This means that you will be paid the same amount for the rest of your life, from the day you retire. Payments from annuities are taxed with ordinary income tax by using a tax card. The annuity payments give you a deduction in the top tax.

Learn more about state pension on

Installment pension

The installment pension (ratepension) is paid to you for a period of a minimum of 10 years and a maximum of 25 years. Payments from installment pensions are taxed with ordinary income tax using a tax card. The installment pension payments give you a deduction in the top tax.

Retirement insurance/Retirement savings

You can choose to pay into retirement insurance/savings (aldersforsikring/aldersopsparing). You do not get a tax deduction for the payment, but in return you get the retirement insurance paid out as a tax-free lump sum with your pension. Until the payout, you only pay pension return tax of 15.3% of the return. If you die before your retirement, your retirement insurance will be paid out to your next of kin.

Spouse, cohabitant and child pension

IDA recommends that you investigate whether it is possible for your spouse/cohabitant and your children to be included as beneficiaries in your pension scheme.
In this way, you can ensure that as large a proportion of your pension funds as possible goes to them as beneficiaries in the event of your death. Your pension fund can tell you more about the options for spouse's, cohabitant's and child's pension.

Adjust your pension continuously

Your needs change as your life evolves. That is why it is also important that you consider at regular intervals whether you should adjust your pension savings so that it suits your life situation.

If there are significant changes in your life, you should talk to your pension company.

Enroll your relatives in the pension scheme

Regardless of the pension savings you have, you should always decide who should have the pension paid out in the event of your death.

It is important that you enter the persons you wish to benefit in the pension scheme, as it is not sufficient that they are beneficiaries in a will.

Recommended pension and social security funds

IDA recommends that you establish pension savings with ISP Pension or P+. To go on early retirement, you must be a member of an unemployment insurance fund. Here IDA recommends the Akademikernes A-kasse.