Private pension insurance in Denmark

Last updated 1/29/2024

Many Danish employees take out private pension insurance, which complements the other pension agreements that they have. In Denmark there are three types of pension insurance - alderspension, ratepension and livsvarig livrente.

If you work in Denmark, you can complement your labour market pension by taking out private pension insurance, which is something that many Danish employees do. If you live in Sweden, you can take out private pension insurance there, but you can also take out Danish pension insurance. In that case, you will take out either an alderspension, a ratepension or a livsvarig livrente.

Alderspension - paid as a lump sum

Alderspension is taken out with a bank or a pension company. An alderspension is paid out as a lump sum when it becomes due.

Ratepension - paid in tranches

A ratepension can be taken out with either a pension company or as savings in a bank. A ratepension is paid in tranches, often monthly and for at least 10 years and a maximum of 30 years.

Livsvarig livrente - fixed monthly amount as long as you are alive

A livrente gives, in the same way as a ratepensionen, a fixed monthly income. The difference is that a livrente guarantees you a monthly amount for as long as you are alive.

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