Payout |
Lump sum. Can, however, be split into several payouts. |
Maximum payment – per year |
If you are more than 7 years away from the Danish state pension, you may pay up to DKK 8,800.
If you are less than 7 years away from the Danish state pension, you may pay up to DKK 56,900.
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Maximum deductible value |
Not deductible |
Taxation |
Tax-free |
Establishment or increase after age 62? |
Yes |
Can be changed to |
- |
Payouts begin, at the earliest* |
60/5 years before state pension/3 years before state pension |
Latest payout start |
Earliest payout age + 20 years* |
Who receives the savings if you pass away before retirement? |
The savings will be paid out to your dependants. |
Who receives the savings if you pass away after retirement? |
The savings will be paid out to your dependants. |
Advantages |
- Large lump sum
- Is not set off against the pension supplement of the Danish state pension
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Disadvantages
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-
When you make payments to an old-age savings plan, you will be liable to pay a 40 % tax penalty if you have received payouts from an instalment pension, a life pension or an index-linked plan in previous years.**
- If you convert a tax-deductible pension plan into a plan without tax deductibility, you must change your preliminary income assessment. Otherwise, you will have to pay back taxes the following year.
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