Investment of your savings
It is important that your pension savings are invested in a way that matches your needs. How much you wish to be involved, your position regarding investment, your risk appetite and how long you have left before retirement, are all important factors when deciding on a savings and risk profile.
VækstPension medium risk is our recommended product that will adjust your investment risk regularly and ensure that your risk is scaled down when your retirement age is approaching. This means that you will have a savings product that provides you with a good balance between the investment risk and the return.
With LinkPension, you will benefit fully from the movements in the market. If you should want to or already have insight in how to invest, you can choose the funds yourself and thus adjust your own risk regularly.
With LinkPension, you determine yourself which funds to invest in from your own investment account. This way, you can achieve a higher return, but you will also bear the full risk of your investments.
An annuity certain scheme will provide you with a fixed monthly disbursement for 10-30 years from your chosen time of retirement.
If you pass away before the entire annuity pension has been disbursed, the remaining part of the disbursements will be paid to your beneficiaries automatically. You may contribute up to DKK 63,100.00 (2024) per year to an annuity certain scheme.
Life annuity is a lifelong disbursement with savings protection. You will receive a monthly sum from your chosen time of retirement and for the rest of your life. Also, your beneficiaries are ensured a lump sum if you pass away before you retire.
Life annuity is also for you who contribute more than DKK 63,100.00 (2024) per year into your pension scheme with a complete deduction on your contributions. Life annuity is a good supplement to an annuity certain scheme.
Lump sum pension offers freedom
With an old-age savings scheme, you get a lump sum that you can use any way you like. It gives you the freedom to, for example, travel the world, buy a new car or refurbish your home.
You will get:
- a good supplement to your other pension savings
- your old-age savings paid as a lump sum
- a tax-free benefit.
The tax rules – how much you can contribute to your old-age savings scheme (without deductibility)
Your age determines how much you can contribute to your old-age savings scheme without being subject to tax:
- If you have seven years or less until state retirement age or are a state pensioner, you may contribute up to DKK 58,900 per year*
- If you have more than seven years until state retirement age, you may contribute up to DKK 9,100 per year.
Limits on contributions to old-age savings scheme
The limits on contributions to an old-age savings scheme are a combined amount, regardless of whether you have old-age savings schemes with other companies.
*Please note that disbursements from a tax-deductible pension scheme, e.g. a current whole life annuity pension scheme or an annuity certain scheme, taking place 10 years before your state retirement age or later are disqualifying and mean that you cannot contribute more than DKK 9,100 per year net of taxes to your old-age savings scheme. If your contribution still exceeds the lower threshold (DKK 9,100 per year), you must pay 40% tax on the part of the contribution that exceeds the lower threshold. However, the tax is automatically reduced to 4% if you transfer the excess amount to a tax-deductible pension scheme the following year, such as an annuity certain scheme.
The disqualifying disbursement rules apply from 1 April 2018 across all schemes in all companies.