In general, all your savings are used for a lifelong retirement pension (life annuity) which guarantees you a monthly payment for as long as you live. No matter how old you live to be. 

If you want to supplement your retirement pension with an annuity certain or a retirement savings scheme, you can contact Membership Services or make an extra payment on Min pension

You do not pay tax of your contribution payments for an retirement pension. When the retirement pension benefits are paid, they are taxed as personal income. This means that you must pay tax of your monthly benefit as you do with your salary. The retirement pension benefits are, however, not subject to payment of labour market contributions (8 percent).

Advantages of a retirement pension scheme

• A montly payment for as long as you live – no matter how old you live to be.
• A tax relief of up to 52.06 percent on your payments.
• Low taxation: You only pay pension return tax of 15.3 percent.
• You can pay as much as you want.
• With P+ Life cycle you can choose your desired risk tolerance level.
• Your savings are creditor protected until payment starts.

Restrictions on a retirement pension scheme

• You cannot have your entire savings paid as a lump sum.
• A retirement pension cannot be converted into another form of payment like e.g. an annuity certain.
• The retirement pension benefits may be set off against your early retirement benefits and additional state pension. Read more on Borger.dk

Are you approaching retirement?

If you are approaching your retirement age and have started planning your retirement, you can read more about what you should consider and pay attention to here