Most people save for retirement using three different types of savings plans:
Old-age savings
You receive your old-age savings as a lump sum benefit or in smaller amounts if you do not need the entire amount all at once.
You are not required to pay taxes on the money you receive.
Annuity pension
You receive a monthly amount when you retire. You decide the time period over which the annuity pension is paid out. This can range between 10 and 30 years. "However, the final payout must be paid out no later than 30 years after your earliest retirement age
You are required to pay taxes on the money you receive.
Lifetime pension
You receive a monthly amount when you retire and for as long as you live.
You are required to pay taxes on the money you receive.
There are limits to how much you can pay into an old-age savings scheme.
If you are more than seven years away from your state pension age, you can pay in up to DKK 9.400 each year. If you are less than seven years away from your state pension age, you can pay in up to DKK 61.200 each year.
These limits apply to all your old-age savings no matter how many schemes you have.
If you die before your old-age savings have been paid out in full, the remaining balance will be paid out to your beneficiaries.