Typical questions

What happens to my savings if I die after I start to receive pension benefits?

You typically have three savings accounts, and your savings will be disbursed to your beneficiaries as follows: 

Retirement savings 
If you have not received the full amount of your retirement savings, your beneficiaries will receive the remaining amount. The payout is tax-free. 

Annuity pension 
If you have not received the full amount of your annuity pension savings, your beneficiaries will receive the remaining amount. The benefits will be disbursed as a lump sum. 

Lifetime pension 
Your lifetime pension scheme is comprised by a Pension Guarantee, which typically covers a period of ten years after the disbursement of benefits has started.  

This means that your beneficiaries will receive the rest of the benefits you were to receive during the period covered by the Pension Guarantee. The benefits will be disbursed as a lump sum. 

Your beneficiaries will not receive the part of your lifetime pension savings that is not comprised by a guarantee.   

You can opt out of the Pension Guarantee. This may be a good idea if, for instance, you are unmarried and do not have any children, as your amount of benefits will be higher.  

State and estate taxes 
Your annuity pension and lifetime pension savings are subject to 40% state tax, which we will deduct before disbursement. If your savings are subject to estate tax, this will also be deducted from all disbursements. 

Can I change the amount my next of kin will receive?

Yes, you can choose a higher or a lower minimum amount so that it matches the needs of your beneficiaries. 
 
You can specify your minimum amount at pension.dk  

Can I change who will receive my pension savings when I die?

Yes, you can choose one or more beneficiaries.

Due to tax rules, the choice is not completely free, however. You can choose between the following relatives:

  • Your spouse or cohabitant
  • Your children or grandchildren
  • Your former spouse if you are separated or divorced.

If you want to designate persons other than the above, please call us on +45 7012 1330 and we’ll assist you.

Here you can change who should have the funds

Who will receive the funds in the event of my death?

If you die before retirement, all your savings will go to your beneficiaries.
Unless you have designated other beneficiaries, the savings will be paid to your next of kin. This is good and sufficient solution for most people.  

Your next of kin, in order of priority, are:

  • Your spouse
  • Your cohabitant, if you have been living together for two years or more or if you have children together
  • Your children or grandchildren – i.e. your issue
  • Any heirs named in your will
  • Your heirs under the provisions of the Danish Inheritance Act