Tax and deductions related to pension and early retirement
Your income and tax when you retire or begin early retirement
It is important that you correct your preliminary income assessment (forskudsopgørelse) the first month after you have retired or begun your early retirement. Udbetaling Danmark uses the information in your preliminary income assessment to calculate your pension. We use the information to ensure that you don’t pay too much or too little tax.
If you receive pension and earned income from more than one provider, you have to make sure that only one of the providers use your primary tax card (this could be Udbetaling Danmark or your pension provider). You have to inform the providers whether to use your primary or secondary tax card.
Remember to check your new preliminary income assessment again in late November in the year after you retired or began early retirement. You should do so to make sure you are getting the correct pension, the correct deductions and avoid having to pay outstanding tax.
Read more below under Change your preliminary income assessment when you retire or begin receiving early retirement benefits.
Your deductions when you contribute to a pension scheme
In the majority of cases, you automatically receive your tax relief and pay the right amount of tax on your pension and early retirement benefits. Your bank or pension provider automatically pays 15.3% tax on returns from your pension scheme assets (interest, dividends and capital gains/losses).
Remember to check or correct your preliminary income assessment when you contribute to a pension scheme.
- Annuity pension scheme: enter your contributions in field 416.
- Life annuity: enter your contributions in field 436.
For further legal information in Danish see Our Danish-language legal guide .