You automatically obtain a tax deduction for contributions you make to pension schemes approved as deductible for tax purposes. The deduction is calculated as a percentage of your contributions of up to DKK 74,700 in 2021 (DKK 73,100 in 2020). The percentage depends on how many years you are from reaching the state pension age. In the calculation the sum of certain taxable payments from pension schemes of income year is deducted.

You are also entitled to an additional deduction for contributions made by your employer (employer pension schemes). 

It is considered an assessed deduction.

15 years or less

With 15 years or less until you are entitled to a state pension, you obtain an additional deduction of 32% on contributions of up to DKK 74,700 in 2021. This means that your maximum deduction is DKK 74,700 x DKK 0.32 = DKK 23,904 in 2021.

More than 15 years

With more than 15 years until you are entitled to a state pension, you obtain an additional deduction of 12% on contributions of up to DKK 74,700 in 2021. This means that your maximum deduction is DKK 74,700 kr. x 0.12 = DKK 8,964 in 2021.

15 years or less until state pension
Year Rates Maximum amount
2020 32% on contributions up to DKK 73,100 DKK 23,392
2021 32% on contributions up to DKK 74,700 DKK 23,904

 

More than 15 years until state pension
Year Rates Maximum amount
20201 12% on contributions up to DKK 73,100 DKK 8,772
2021 12% on contributions up to DKK 74,700 DKK 8,964

The state pension age is adjusted from time to time and is as follows:

State pension age
If you were born You can retire when you are
  Before 1 January 1954 * 65 years
Between 1 January 1954 and 30 June 1954 ** 65.5 years
Between 1 July 1954 and 31 December 1954 ** 66 years
Between 1 January 1955 and 30 June 1955 66.5 years
Between 1 July 1955 and 31 December 1962 ** 67 years

* Date included. ** Both dates included.

If you were born after 31 December 1962, your state pension age will be determined according to your life expectancy. 

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