Retirement Savings

From 2013, you can set up a retirement savings scheme. The funds are typically disbursed as a lump sum for you to spend whenever you want.  That means that you get a large amount once instead of regular, smaller amounts. But you can also opt for several, smaller disbursements – and you can choose to continue to pay into the scheme while receiving the disbursements.

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You decide how you want your savings disbursed.  You may want to travel, buy a new home, a car or a holiday home, or simply to supplement your state retirement pension.

How much can you pay into the account?
The maximum annual contribution is DKK 28,600. Note that the amount is not tax-deductible, so there is no tax advantage linked to these contributions.

How late can you open a retirement savings account?
You can start saving under the scheme until 15 years after reaching the earliest age when you can take your personal pension (currently 60 years + 15 years = 75 years).

When can the funds be disbursed?
The funds can be disbursed from the earliest day when you can take your personal pension, but you can also choose to wait as long as 15 years after that date before having the funds disbursed. Disbursements are not subject to any tax or duty, as the contributions are not tax-deductible.

How are the funds disbursed?
Disbursement may take place in several ways:  As a lump sum when you take early retirement or reach state pensionable age, or as regular payments. You can continue to make contributions even though funds have been disbursed to you.

Guaranteed disbursement
Your savings are guaranteed. This means that your savings will be disbursed to your heirs if you die before the full amount of savings has been disbursed to you.

Personal savings or contributions through your employer?
You can open a retirement savings account personally or through your employer. As contributions are not tax -deductible, we recommend that you open the account personally.

Advice
The amount you contribute should reflect your circumstances and your financial situation so that you get the maximum benefit of your savings. Let one of our advisers give you an overview.

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What if...
What is important to remember if you are getting married or become unable to work?

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