Danish pension system: how pensions work in Denmark
If you work in Denmark, you may earn pension in Denmark. Get an overview of the Danish pension system, including public pension, occupational pension and private pension savings, and find out what you need to check as an employee.
Important differences in the Danish pension system
If you are new to the Danish labour market, it is important to know that the pension system differs from the Swedish system.
The public pension is often lower in Denmark than in Sweden. In addition, fewer employers in Denmark pay into an occupational pension, such as an arbejdsmarkedspension or firmapension, than in Sweden.
The Danish pension system consists of three main parts: public pension, occupational pension and private pension.
Find information about Danish pensions at lifeindenmark.dk
Public pension in Denmark
EU citizens who work and pay tax in Denmark are covered by the Danish public pension rules.
Public pension includes the Danish state pension, folkepension, disability pension, førtidspension, and various supplements.
See our page about Danish public pension and supplements
Find information about state pension at lifeindenmark.dk
Occupational pension in Denmark
An occupational pension in Denmark, arbejdsmarkedspension, is normally paid into by both you and your employer through your salary. Not all employees are covered by an arbejdsmarkedspension, so check your employment contract.
An arbejdsmarkedspension may be part of a Danish collective agreement, overenskomst. However, not all employers are covered by an overenskomst. Many employers instead offer an individual company pension, firmapension.
Check with your employer whether they pay into a firmapension for you. This should also be stated in your employment contract. You cannot assume that you have a firmapension just because other employees at your workplace do, as it may be something you negotiate individually, for example as part of a salary negotiation.
Private pension savings
As in Sweden, you can take out a private pension as a supplement or an alternative to an arbejdsmarkedspension.
As public pension is often lower in Denmark than in Sweden and not all employees have an arbejdsmarkedspension, it can be particularly important to review your private pension savings when you work in Denmark.
The Danish efterløn scheme
Denmark also has a voluntary retirement scheme, efterløn. You are only eligible if you meet certain conditions, including requirements relating to membership of a Danish unemployment insurance fund, a-kasse, and contributions to the efterløn scheme.
Efterløn allows you to leave the labour market before you reach the Danish state pension age. The rules depend on factors such as your age and how long you have paid contributions to the scheme.
More information
If you have questions about your Danish public pension, contact the Danish authority responsible for pension payments, Udbetaling Danmark.
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