Pension in Denmark

When you retire you must have something to live on

When you retire you must have something to live on

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Start Send life certificate

Once a year, pensioners abroad are requested by Udbetaling Danmark to prove that they are still alive by sending a life certificate.

In May 2018 you will receive a letter from Udbetaling Danmark. Your life certificate must be sent as early as to come to hand by 31. August 2018.

For pensioners in Norway, Sweden, Germany, the Netherlands and Australia, however, there is only a life certificate procedure if Udbetaling Danmark request further information.

The Danish pension system is structured so that you get your pension from several places. You may be entitled to state pension when you reach the state pension age. If you are a wage earner, your employer will as a rule see to it that part of your wage is paid into a pension scheme.

Furthermore, you have the possibility to set up an individual pension scheme.

A Danish individual pension is a scheme which you yourself set up and save in through a Danish pension company, financial institution or the like.

The pension provides you with income when you grow older. Furthermore, it may contain insurances for you and your family if you lose the ability to work or die.

If you leave Denmark while you are still economically active, you may choose to continue paying into your pension. If you stop paying, the insurances that are part of the schemes will typically no longer be in force after one year.

You can have your pension paid out abroad if you do not live in Denmark any longer.

Please contact your pension company, your pension fund or your financial institution if you want to learn more about your individual pensions.

A Danish labour market pension is a pension scheme that is established as part of your employment relationship in Denmark. Normally, both you and your employer pay contributions to the pension through the wage. The pension is in most cases a fixed percentage of your wage.

Labour market pensions often contain payments that are disbursed to a spouse and children if you die before retirement. Most pensions also hold insurance for you if you lose the ability to work.

If you leave Denmark while you are still economically active, you may choose to continue paying into your pension. If you stop paying, the insurances that are part of the schemes will typically no longer be in force after one year.

You can have your pension paid out abroad if you do not live in Denmark any longer.

Please contact your pension company, your pension fund or your financial institution if you want to learn more about your labour market pensions.

Start Apply for a state pension from Denmark

Danish state pension (Folkepension) is paid by public authorities. The point of departure is that you are entitled to state pension when you reach the state pension age if you fulfil three fundamental conditions:

  • You must be a Danish national
  • You must be resident in Denmark
  • You must have lived in Denmark for three years within the period from you reached the age of 15 till you reach the state pension age.

However, special rules may apply to you, for example if you have lived in an EU/EEA Member State, Switzerland or a country with which Denmark has concluded a special agreement.

In order to receive the full amount of the state pension, you must have lived in Denmark for at least 40 years since you reached the age of 15 and till you reach the state pension age. If this is not the case, you may be entitled to a smaller proportion of the full state pension.

The amount of your state pension depends also on whether you have additional income and on whether you choose to defer claiming the state pension.

You can postpone your state pension

If you want to keep on working you can postpone your state pension. If you do that you will get a higher pension when you decide to claim your state pension.

Remember to notify Udbetaling Danmark about changes that impacts your pension

If you receive Danish state pension, you must inform the Danish authority Udbetaling Danmark about any changes that may be important to your pension. You must, for example, inform Udbetaling Danmark if you move abroad, if there are changes to your income, or if you travel abroad so much that it impacts on your pension.

Rules vary as to whether you can have your Danish state pension paid out abroad. The rules depend, among other things, on the country you live in, and on whether you already receive state pension or whether you are going to apply for state pension.

Contact

If you want to know more about state pension, you may contact Udbetaling Danmark if you live in Denmark.

Please contact Udbetaling Danmark International Pension if you live abroad and you want to apply for Danish state pension.

Early Danish pension (Førtidspension) may be an option if you have turned 40 and your work capacity is permanently reduced to such a degree that you are unable to work under ordinary terms or in flexible employment. If you have not turned 40, early Danish pension will only be an option under special circumstances.

You are not entitled to early Danish pension if your loss of work capacity is only temporary or if you are able to improve your work capacity via activation, treatment, or the like.

In order to receive early Danish pension, you must also satisfy residential and citizenship requirements.

Your municipal authorities determine whether you are entitled to early Danish pension. Generally speaking, you must have been enrolled in a resource clarification process before the municipal authorities can assess your entitlement to early Danish pension. During the assessment, the municipal authorities review a range of factors, e.g., your education, your work experience, and your health.

For the purpose of assessing your work capacity, the municipal authorities prepare a rehabilitation plan in collaboration with yourself. The plan describes your resources and opportunities relative to the requirements of the job market.

Supplementary Labour Market Pension

Supplementary Labour Market Pension (SUPP) is a pension to which you can elect to make contributions if you receive early Danish pension. When you make contributions to SUPP, you will receive an extra monthly payment when you become an old-age pensioner. You will pay 1/3 of the contribution while the state will pay 2/3.

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.

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.

You may be entitled to a foreign pension (Udenlandsk Pension)  if you have lived or worked in another country than Denmark. It depends on the rules in the individual country whether you are entitled to have your foreign pension paid out in Denmark.

If you want to apply for foreign pension, there are different places you need to contact. If it is a matter of:

  • Pension from a country outside the EU/EEA, and with which Denmark has not concluded a special agreement: please contact the embassy of the country in question here in Denmark.
  • Pension from an EU/EEA Member State, Switzerland or a country with which Denmark has concluded a convention on social security: please contact the Danish authority Udbetaling Danmark if you live in Denmark and are entitled to Danish pension. Your application for Danish pension also serves as application for the foreign pension. Udbetaling Danmark will send a copy of your pension case to the Udbetaling Danmark International Pension, which will forward it to the foreign pension authority. If you do not receive Danish pension, you may choose to fill in an application form and send it to Udbetaling Danmark International Pension.

Please contact the foreign pension authority if you have any questions regarding the way in which your foreign pension is calculated or paid out.

If you want to complain about a decision regarding foreign pension, you must draw up the complaint yourself and send it to the right authority abroad. It will appear from the decision which authority it is and what the deadline is for complaints.

Application for supplementary pension allowance 2018 is no longer available

You can no longer apply for the supplementary pension allowance for 2018. Therefor you can no longer download the form. As from 1st of January 2019 you can apply for the supplementary pension allowance.

What is partial pension?

Partial pension (Delpension) is financial compensation for you if you want to reduce your working hours without leaving the labour market altogether.

Can I get partial pension?

You can get partial pension if you:

  • were born before 1959
  • live and work in Denmark or on a Danish ship
  • have reached an age at which you are eligible for partial pension
  • have not received or are not entitled to receive a labour market exit benefit certificate
  • have had your pension assets calculated.

If you are a salaried employee/wage earner

If you are a salaried employee/wage earner, you must meet certain requirements in order to get partial pension. Before you go on partial pension:

  • You must have worked an average of 30 hours per week for 18 months within the past 24 months. The work must have been performed in Denmark or on a Danish ship.
  • You must have paid full ATP Livslang Pension contributions for at least 10 years within the past 20 years.

When you go on partial pension:

  • You must reduce your working hours by at least 7 hours a week, or by at least one quarter of the time you have worked on average per week in the past 9 months before you went on partial pension.
  • You must work between 12 and 30 hours per week on average. 
  • You must work at least 20 days each quarter.

If you are self-employed

If you are self-employed, you must meet certain requirements in order to get partial pension. Before you go on partial pension:

  • You must have worked full-time in the past 5 years in Denmark or on a Danish ship.
  • You must have operated an independent business for at least 4 out of the past 5 years, and for at least 9 out of the past 12 months.
  • A considerable part of your income in 4 of the past 5 years must be the result of your own work.
  • Your income must have been at least DKK 60,336 before tax (2017) for the past year before you get partial pension.

When you go on partial pension:

  • You must reduce your average working hours from full-time (37 hours per week) to half time (18.5 hours per week).

What are labour market exit benefits under the flexi job scheme?

Labour market exit benefits under the flexi job scheme (Fleksydelse) are a labour market exit benefit – meaning a payment to you if you have been referred to a flexi job and you want to stop working some years before you reach the retirement age for the state-funded old-age pension.

To be eligible to receive labour market exit benefits under the flexi job scheme, you must:

  • have reached an age at which you are eligible to receive labour market exit benefits under the flexi job scheme
  • have a flexi job or have been referred to a flexi job (and have been so for at least three months)
  • pay contributions to the flexi job scheme
  • meet the requirements for seniority from the unemployment insurance fund and for paying contributions to the labour market exit benefit scheme/the flexi job scheme
  • have calculated your pension assets
  • live in Denmark or another EU/EEA country, the Faroe Islands, Greenland or Switzerland.

How do I earn seniority?

To be eligible to receive labour market exit benefits under the flexi job scheme, you must have earned seniority.

As a general rule, you must have paid contributions to the labour market exit benefit scheme/the flexi job scheme for 30 years, and you must have started paying the contributions no later than from the age of 30 in order to earn the right to receive benefits under the Danish flexi job scheme.

Special rules apply if you were born before 1978 and, depending on your date of birth, you may be covered by one or more of these special rules.