Use your pension to get a tax deduction

Make an extra pension payment before New Year and make use of the possibility of additional tax deduction. Below, you can read more about the tax advantages and the possibilities of tax deduction. If you would like to make an additional payment to your pension plan, you can see at My PFA whether you can make the payment yourself.
If you cannot make the payment yourself, please call PFA’s Advisory Services Centre at (+45) 70 12 50 00.

The advantages of making an extra pension payment in brief

✔ You save on taxes when you make an extra payment as your pension payments are tax deductible (does not apply to old-age savings plans)

✔ An extra payment lets you reduce or completely avoid having to pay top-bracket tax

✔ The return on pension savings is subject to a lower tax rate than the return on other investments and your bank deposit
     

What is your situation?

I pay top-bracket tax

You can gain a tax advantage by making an extra pension payment. This applies if you pay top-bracket tax (DKK 513,000 after labour market contribution).

I have paid less than DKK 73,100 to my pension savings plan

You can gain a tax advantage by making an extra pension payment. This applies if you, in total, have paid less than DKK 73,100, including ATP, to your instalment or life pension during 2020.

I am 5 years or less away from the state pension age

The last five years before you reach your retirement age, you can pay up to DKK 50,200 to an old-age savings plan. Unlike for example instalment pension and life pension, the payout from an old-age savings plan will not be set off against your state pension supplement. This may be an advantage if you pay bottom-bracket tax and thus do not benefit the same from the pension allowance as those who pay top-bracket tax.
 
The payout from an old-age savings plan is tax-free, and, therefore, you cannot get tax deduction for the payments. The payment is deducted from your taxable income, so please be aware that payments to an old-age savings plan mean more money for your retirement but less money at your disposal right now.

See what your 2020 payments amount to at My PFA >     

How to get started

At My PFA, you can see whether you can make the payment yourself >

If you cannot make the payment yourself at My PFA or if you want to know more about your options, please contact us. All you need to do is complete the form below, then we will contact you. Alternatively, you can call our Advisory Services Centre at (+45) 70 12 50 00.