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Planning for retirement

Planning your transition to retirement is a good idea. The earlier you know what your life as a pensioner will be like, the better you can plan the transition.

You may have a lot of questions when you approach retirement. Below, you can find answers to some of the questions you may have.

Start by creating an overview of your expenses on transition to retirement, e.g. by going through your budget. There may be expenses that disappear, e.g. transportation and membership fees, but there may also be new ones, e.g. increased travel expenses as well as tickets for concerts and theaters.

On Min pension you can see your pension covers. You can also see when they are paid and get a pension forecast at different ages. If you pay contributions, the pension forecast is based on the condition that payment is continued until your reach the age in question. You can find Assumptions for calcuation of the pensions here

If you have pension schemes in another pension company or bank, you can log on to PensionsInfo. When you have pension schemes in several pension companies, you should be aware that not all the pension benefits necessarily are payable at the same age. It normally appears from PensionsInfo when the different pension benefits can be paid.


You can read more about pension ages here

Yes, you can increase your pension benefits by making extra payments to your pension scheme - both by way of increasing increasing the monthly contribution and/or by paying single contributions. If you want to make an extra payment, you must contact us for advisory services as you can make the payment to several pension products.

If you are an employee and the pension contributions are a part of your terms of employment, the pension benefits can be paid when you have resigned from your job or you have entered into an agreement about a 25 percent reduction of the working hours as a minimum. If your working hours are reduced a minimum of 25 percent, you can be paid up to 25 percent of your lifelong pension benefits.


If the contributions are/have been paid by a public employer, you can as a maximum receive 33 percent of the pension benefits in case of reduced working hours even though the reduction exceeds 33 percent.


If you are a dormant member or paying the contributions yourself, you can have the pension benefits paid even though you are working. If you want to have the entire pension paid, the monthly contribution payments must be discontinued.


On partial payment of the retirement pension benefits, the monthly administrative costs will increase as you pay administrative costs related to both the paid pension benefits and the part that is not being paid. These costs will continue when the last part of the retirement pension benefits are paid. 

No, that is not a requirement. The pension products are adjustable until you start payment. However, it is important that possible changes to the pension scheme are made before payment of pension benefits starts.


You can e.g. have the lifelong pension benefits paid and hold back the annuity certain – or vice versa. The annuity certain can also be paid for more than 10 years. It is also a possibility to transfer savings from the annuity certain to the lifelong retirement pension in relation to retirement. However, this must be done before payment of retirement benefits starts.

 

On partial payment of the retirement pension benefits, the monthly administrative costs will increase as you pay administrative costs related to both the paid pension benefits and the part that is not being paid. These costs will continue when the last part of the retirement pension benefits are paid. There are also administrative costs related to payment of potential spouse’s or cohabitant’s pension benefits which are paid after your death. You can read more about the costs here

There are 4 factors which are important to the development of your pension savings – both during the savings and payment period. The 4 factors are:

  • Costs
  • Savings
  • Longevity
  • Deposit interest rate.

The essential factors for adjustment of the pension are changes in longevity and the development of the deposit interest rate/investment return. You can read more here

It is your unemployment fund that handles the early retirement benefits scheme. We recommend that you contact Akademikernes A-kasse to learn about your possibilities for receiving early retirement benefits. Here you can also read about the rules on deductions related to early retirement benefits.

Yes, you can. We do not reduce your pension benefits because you are working. 

 

Yes, if not all your pension benefits on retirement are being paid. If you want to continue paying contributions, you should contact us for advisory services before you start receiving your monthly pension benefits.

The right to state pension benefits depends on your age – read more here


The state pension benefits are not paid automatically – you must apply for having them paid. You should be aware that you are entitled to state pension benefits from the 1. of the month after you have reached the state pension age. You can apply for state pension benefits 6 months before you are entitled to payment. You can find the application on lifeindenmark.borger.dk

The monthly pension benefits are taxed as personal income, i.e. you do not pay labour market contributions (8 percent) of the pension benefits. Lump sums are subject to a 40 percent taxation, however, this does not apply to a possible retirement insurance which is tax-exempt.

You must contact us approx. 2 months before you want to retire and start payment of your pension savings. You can apply for payment here

The later you start having the monthly pension benefits paid, the higher they will be. On Min pension you can see your pension covers. Here you can also see when they become payable and obtain a pension forecast at different ages.