Folkepension, ATP, ratepension, livrente: everything about the Danish pension system for selvstændige and how to bridge the retirement gap.
Denmark combines a generous universal state pension with mandatory and voluntary supplementary pillars.
The Folkepension is a universal state pension based on residence, not contributions. The basic amount is approximately 6,994 DKK/month (~€938), plus a means-tested supplement. 40 years of residence in Denmark are required for a full pension.
40 years of residence required for a full pension. Each missing year reduces the amount by 1/40th.
ATP is a mandatory supplementary pension for employees (~3,600 DKK/year for full-time). For the self-employed, membership is voluntary but strongly recommended as it offers a guaranteed return.
Unlike employees who receive 12-17% of salary via collective agreements (pillar 2), self-employed individuals have no mandatory supplementary pension. This gap can represent thousands of kroner per month in retirement.
Danish self-employed must compensate for the missing pillar 2 through structured private savings.
Contributions deductible from taxable income, capped at approximately 60,900 DKK/year (2024). Capital is paid out in instalments over 10 to 25 years in retirement.
No contribution cap, fully tax-deductible payments. Capital is converted into a life annuity at retirement, ideal for high earners.
After-tax savings, capped at approximately 5,700 DKK/year. Not deductible but capital and returns are tax-free at withdrawal.
Contribute the maximum deductible of 60,900 DKK/year to reduce your income tax immediately while saving for retirement.
Even though it's not mandatory, ATP offers a guaranteed return and a lifetime pension. The cost is modest (~3,600 DKK/year) for additional security.
Beyond the ratepension cap, livrente contributions are 100% deductible with no cap, ideal for high-income years.
The early retirement scheme efterløn (from ~62) requires A-kasse membership. Check your eligibility well before retirement age.
Our financial analysis tools help you bridge the Danish self-employed pension gap and optimise your retirement savings.
Discover our solutionsThe Folkepension age is currently 67. It will gradually rise to 69 by 2035, linked to life expectancy. The efterløn early retirement scheme allows departure from ~62 under certain conditions.
No, unlike employees who benefit from mandatory occupational pensions (12-17% of salary), self-employed individuals are not subject to any pillar 2 contributions. Only the Folkepension (universal, residence-based) is guaranteed.
A ratepension is a tax-advantaged private pension plan. Contributions are deductible from taxable income up to ~60,900 DKK/year (2024). Capital is paid in instalments over 10 to 25 years.
Ratepension is capped (~60,900 DKK/year) and paid in instalments over 10-25 years. Livrente has no contribution cap and pays a lifetime annuity. Both are deductible from taxable income.
The Folkepension basic amount is approximately 6,994 DKK/month (~€938), plus a means-tested supplement. A full pension requires 40 years of residence in Denmark.
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