Once a year, Udbetaling Danmark readjusts your state pension in order to ensure that you have received the right amount to which you were entitled for the year. The readjustment leads to one of three possible outcomes:
- You received the right amount of pension to which you were entitled last year.
- You received too much pension last year, and you therefore have to pay back some of the pension which you have received. Please note that you only have to pay back pension if you have received more than DKK 249 too much last year.
- You received less pension than you were entitled to last year, and you will be paid the outstanding pension.
You can see a short video here about how the calculation of your pension work.
Why should I pay back pension or have more pension paid?
Udbetaling Danmark uses your tax assessment notice from SKAT (Danish Tax and Customs Administration), as well as the information provided by you about the income received by you and your spouse/cohabitant which is not taxed in Denmark.
You have to pay back some of your pension if your tax assessment notice shows that your total income was higher than the income on which your pension was based. You will have extra pension paid to you if your total income was lower than the income on which your pension was based last year. Your spouse/cohabitant’s income is also included in the calculation of your pension.
How do I pay back pension?
If you live in Denmark and have to pay back pension you will get a letter with a payment form in your Digital Post late in June or in the beginning of July.
If you live outside of Denmark and you have to pay back pension you can transfer money to Udbetaling Danmarks bank:
- Danske Bank
- Reg. nr. 0216
- Konto nr. 4069046312
- SWIFT-adresse: DABADKKK
- IBAN nr.: DK7102164069046312
- Remember to type in you CPR number.
How do I make sure that I am paid the right pension during the year?
You have to make sure that Udbetaling Danmark has the right information about your income and your spouse /cohabitant’s income. You have to inform Udbetaling Danmark of any changes to your income. Please check your latest pension notice.
If your additional income is taxed in Denmark, you don’t have to inform Udbetaling Danmark. All you have to do is change your preliminary income assessment.
If you have additional income which is not taxed in Denmark or if your spouse/cohabitant has such income, for example foreign income, then you must inform Udbetaling Danmark.
In most cases, Udbetaling Danmark uses your preliminary income assessment to calculate your pension. However, Udbetaling Danmark cannot use your preliminary income assessment if you were not a pensioner for the whole year, or if your spouse/cohabitant was not a pensioner for all of year, or if you started cohabiting with somebody new in the course of the year. In such cases, you must inform Udbetaling Danmark about any changes to your income.