An annuity pension scheme enables you to put aside a large sum of money while simultaneously protecting your family with various insurance products so that they can feel safe and secure, even if you die prematurely.
Flexibility of contributions
The maximum amount you can pay into the annuity pension scheme and get tax relief on is adjusted each year. This year figure is DKK 52400. If you want to contribute more than DKK 52400, you can pay an amount into a life annuity scheme.
When you pay into a pension scheme you have set up, you will be eligible for personal income tax relief on your contributions. If you pay into your pension scheme through your employer, your employer will deduct the amount paid from your salary before withholding tax and labour market contribution tax are charged.
You can take out various insurance products ensuring that your dependents will receive an income for a certain period of time if you die before you retire.
Exemption from contributions (waiver of premium)
You have the possibility of opting for a scheme entitling you to an exemption from contributions if your earning capacity is reduced to an agreed level for a certain period of time. In that case, your pension scheme will continue as if contributions were still being paid.
Payout period of 10 to 25 years
You will be liable to pay income tax, but not labour market contribution tax, on your pension. You can start taking your annuity pension when you reach your early retirement age, and the minimum payout period is 10 years. The maximum payout period is 25 years, counting from the date you reached your early retirement age.