A retirement savings scheme is tax-free and paid as a lump sum or in few instalments.  

Contributions to a retirement savings scheme are not tax-deductible. On the other hand, the pension benefits are not subject to tax or fees.

Advantages of a retirement savings scheme

• You can have a large amount paid as a lump sum.
• Payment is tax-free.
• The pension benefits are not set off against the additional state pension.
• Low taxation: You only pay 15.3 percent in pension return tax.
• With P+ Life cycle you can choose your desired risk tolerance level.
• Your savings are creditor protected until payment starts.
• Your savings always go to your surviving relatives if you die before the pension is paid.

Limitations of a retirement savings scheme

• There is no tax-relief on the contributions as payment is tax-free.
• You can as a maximum pay DKK 9,900 annually (2026) if you have more than 7 years until your state pension age or DKK 64,200 annually (2026) if you have more than 7 years until your state pension age and have not started receiving pension benefits from a pension scheme with monthly payments after 1 April 2018.
• You cannot pay contributions to a retirement savings scheme in P+ through your employer, but you have the option to contribute yourself. 

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