Pensions

Three Pillars

Denmark's Three-Pillar System

Danish retirement income comes from three sources: the state pension (folkepension), mandatory workplace pensions (arbejdsmarkedspension), and voluntary private savings (ratepension/aldersopsparing). Together they typically replace 70–80% of pre-retirement income.

State pension (full, single, 2026)

DKK 14,658/month gross

State pension age (2026)

67 years

State pension age (from 2030)

68 years

Typical workplace pension contribution

12–17% of gross salary

Aldersopsparing annual limit (2026)

DKK 5,800/year

Occupational

Workplace Pension Plans

Most Danish employees have a mandatory workplace pension (arbejdsmarkedspension) set by their collective agreement. The employer contributes 8–12% and the employee contributes 4–5% of gross salary. The 5 largest pension providers are PFA, Danica, Velliv, Sampension, and Industriens Pension.

Typical employer contribution

8–12% of gross salary

Typical employee contribution

4–5% of gross salary

Largest pension provider

PFA Pension (1.3 million members)

Average annual return (2020–2025)

8.2% (PFA)

Tax on pension returns (PAL-skat)

15.3% flat

1. Check your collective agreement to confirm your pension provider and contribution rates
2. Log in to your pension provider's portal (e.g., minpension.dk) to view your balance
3. Designate beneficiaries for the insurance component of your pension
4. Review your investment profile (low/medium/high risk) and adjust if needed
5. Check if you have dormant pension accounts from previous employers at pensionsinfo.dk

Expat & Portable

Pension Portability for Expats

If you leave Denmark, your workplace pension stays with the Danish provider and can be paid out at retirement age regardless of where you live. EU regulations allow pension transfer between member states. Non-EU expats face a 60% tax on early withdrawal.

EU pension transfer

Allowed under EU regulation 883/2004

Non-EU early withdrawal tax

60% of total amount

Earliest payout age

5 years before state pension age

Double taxation treaty countries

85+ countries

ATP (mandatory state supplement)

DKK 3,600/year (employer + employee)

1. Before leaving Denmark, contact your pension provider about international payout options
2. Verify if your destination country has a double taxation treaty with Denmark
3. Register your foreign address with your pension provider for future correspondence
4. Keep your Danish NemID/MitID active for online pension management
5. Consult a cross-border tax advisor if your pension exceeds DKK 500,000