Private pension savings in Denmark
If you work in Denmark, you can supplement your labour market pension with private pension savings. Find out about the three main types of private pension and how they are paid out.
Types of private pension in Denmark
Many employees in Denmark supplement their labour market pension with private pension savings. If you live in Sweden, you can take out a private pension in Sweden or choose a Danish pension scheme.
There are three main types of private pension in Denmark:
- retirement savings paid as a lump sum, alderspension
- pension paid in instalments, ratepension
- and a lifelong annuity, livsvarig livrente
See our page about the Danish pension system
Alderspension - paid as a lump sum
Alderspension was introduced in 2013 to replace the former kapitalpension. You can set up an alderspension with a bank or pension provider. It is paid out as a lump sum when it becomes due.
Ratepension – paid in instalments
You can set up a ratepension with a pension provider or as a savings scheme with a bank. A ratepension is paid out in instalments, usually monthly, over a period of between 10 and 30 years.
Livsvarig livrente – lifelong monthly payments
A livsvarig livrente provides a fixed monthly income for the rest of your life. Unlike a ratepension, which is paid out over a fixed period, payments from a livsvarig livrente continue for as long as you live.
More information
If you need guidance on your pension, feel free to contact the pension specialists at the Øresunddirekt Information Centre.
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