Chapter VI: Old-age Chapter VI: Old-age
Applicable statutory basisNational pension (Folkepension):
Law of 16 May 1984, amended.
Supplementary pension (ATP):
Law of 7 March 1964, amended.
Partial pension (Delpension):
Law of 4 June 1986.
Basic principlesSystem of universal coverage (national pension) and social insurance system (supplementary pension) linked to employment.
Field of applicationNational pension (Folkepension):
compulsory membership for all resident nationals.
Supplementary pension:
compulsory membership for all employees aged 16 - 66 working nine hours or more per week, as well as persons who receive daily allowances in case of sickness or unemployment or who have started participating in activation or training/education measures.
Persons who draw an early pension or receive a transition benefit in case of unemployment may enrol, on a voluntary basis, in the scheme, as may persons who receive a disability pension, an early pension or a partial pension (Delpension).
Salaried workers who take up a non-salaried activity may remain, on a voluntary basis, in the scheme if they have made contributions over a period of three years.
Beneficiaries of the guarantee of sufficient resources.
Exemptions from compulsory insuranceSupplementary pension:
Exempted from compulsory insurance are employees working less than 9 hours per week (also see above under "Field of application").
ConditionsNational pension (Folkepension):
At least three years of residence in Denmark between the ages of 15 and 67.
Non nationals: 10 years of residence in Denmark, 5 years immediately before pension.
Supplementary pension:
None.
National pension (Folkepension):
Full pension after 40 years of residence between the ages of 15 and 67.
Supplementary pension:
scheme in force since 1 April 1964. Payment of full contributions from 1964 to 1997.
Standard pension
67 years.
Early pension
Early pension for persons over 50 for social and/or health reasons (see Table V "Invalidity").
Deferred pension
Possible deferment (3 years) under the supplementary pension scheme.
BenefitsNational pension (Folkepension):
length of time residing in Denmark between the ages of 15 and 67.
Supplementary pension:
membership in scheme since 1 April 1964.
National pension (Folkepension):
Basic pension: an annual amount of DKK 48,024 (EUR 6,445). This sum is reduced if the conditions for obtaining a full pension (40 years of residence) are not fulfilled. In this last case: 1/40 of full pension for each year of residence between the ages of 15 and 67.
Supplementary pension:
Annual amount of DKK 17,976 (EUR 2,413) if the insured has been affiliated to the supplementary scheme since 1 April 1964 and has always worked full-time since then.
Supplementary pensions of less than DKK 1,190 (EUR 160) per year will be replaced by a lump sum payment.
None.
Supplementary pension: see "Field of application."
Spouse
None.
Children
National pension (Folkepension)
None. However see Table IX "Family benefits. Special cases. 2. Pensioners": special allowances for pensioners.
Supplementary pension:
None.
National pension (Folkepension):
Pension supplement: on the condition that the earnings of the pensioner and spouse do not exceed a certain amount: DKK 21,468 (EUR 2,881) per year. For pensioners living alone: DKK 47,616 (EUR 6,391).
Personal allowance: a personal allowance may be granted to pensioners whose living conditions are exceptionally difficult, e.g. to cover medication or heating costs.
National pension (Folkepension):
a factor of 3/40 = DKK 5,181 (EUR 695).
Supplementary pension:
DKK 1,190 (EUR 160).
National pension (Folkepension):
a factor of 40/40 = basic amount DKK 48,024 (EUR 6,445) + pension supplement DKK 21,468 (EUR 2,881) (may be reduced on account of the earnings of the pensioner and spouse) = DKK 69,492 (EUR 9,327).
Supplementary pension:
DKK 17,976 (EUR 2,413) per year.
Benefits: basic pension, pension supplement, early retirement pension (if the pension is granted to a person under 60 years of age, see Table V "Amount of pension.")
National pension (Folkepension):
no possible deferment.
Supplementary pension:
5% increase every six months from the age of 67 onwards to a limit of 30%.
AdjustmentNational pension (Folkepension):
the rate of adjustment for social pensions, as well as that for the other "transfer payments", is set once a year on the basis of wage development.
Supplementary pension:
only adjusted when sufficient funds.
Partial pensionConditions for the partial pension (Delpension):
between the ages of 60 and 67;
resident in Denmark;
Salaried workers: Must have participated in the supplementary pension scheme (ATP) for at least 10 out of the past 20 years; must have worked at least 9 out of the past 12 months in Denmark. Self-employed: Must have worked full-time during the past 5 years; must have been self-employed in Denmark for at least 4 out of the past 5 years and must have been self-employed for at least 9 out of the past 12 months; must have made some profit in their self-employment and must have reduced their working hours to 18.5 hours per week on average.
must reduce the number of working hours by at least seven hours or at least by one quarter; remaining number of hours must be between 12 and 30 per week.
Amount: 1/37 of basic amount per reduced hour or DKK 3,178.41 (EUR 427) per year and per hour reduced. This amount corresponds to 82% of the maximum daily allowance paid by the sickness insurance funds; it is adjusted once a year. The partial pension for the self-employed amounts to DKK 58,800 (EUR 7,892) per year (which corresponds to 18.5 working hours per week on average).
Financing: Financed by taxes, no contributions. The communities are reimbursed by the State for 100% of the costs.
Accumulation with earningsNational pension (Folkepension):
The basic amount depends on the income gained from the pensioner's professional activity. Reduced by DKK 60 (EUR 8.05) for every DKK 100 (EUR 13) earned in excess of DKK 204,100 (EUR 27,392) (for single person) or DKK 138,000 (EUR 18,521) (for married person) per year. Pension supplement is reduced by 30% of earnings (earnings of pensioner and spouse) in excess of DKK 90,300 (EUR 12,119) per year for each married person and DKK 45,000 (EUR 6,039) for singles.
Supplementary pension:
Unlimited accumulation permitted.
Taxation and social contributionsThe parts of the pension liable to taxation are taxed in the same way as salaries.
National pension (Folkepension):
Basic amount and pension supplement are fully liable to taxation.
Supplementary pension:
Supplementary pensions are fully liable to taxation.
No limit of income and no tax reduction.
None.