Receive pension benefits as long as you live with Livrente+
With Livrente+, you will receive pension benefits every month no matter how long you live. This means that you will know your income as an retiree and will not risk running out of money.
Your contributions to Livrente+ are tax deductible and you can contribute as much as you want if you make contributions via your employer. If you make private contributions, there are some restrictions the last 10 years before you retire.
If you want your pension benefits to last all of your life and want to secure your pension savings is paid out to your relatives if you die before you retire, Livrente+ is the savings product for you.
With Livrente+, the value of your savings will automatically be paid to your spouse or surviving relatives if you die before the agreed retirement date.
You will get:
- tax deduction for your contributions
- monthly benefits for as long as you live
- security that your family will receive your savings if you die before you retire.
Your contributions are tax deductible
When you make contributions to Livrente+, you may deduct your contributions from your taxable income.
If you make contributions via your employer, you may contribute as much as you want. The only restriction is that the contributions may not exceed your salary.
If you have at least 10 years left until retirement, all of your contributions are also fully tax deductible.
If you have less than 10 years left until retirement, some restrictions apply to your tax deduction:
- Your contributions up to DKK 58,100 are fully deductible.
- If you contribute more, the tax deduction for the remaining amount will be distributed by 1/10 year for 10 years
Tip: If you combine your Livrente+ with annuity pension, you will make the most of your allowable tax deduction and stretch the budget in your early, active years as a retiree.
If you are self-employed, special rules apply. This means that you can deduct contributions of up to 30 per cent of the profit of your business.
You pay personal income tax on your benefits
Your monthly benefits under the pension scheme are taxed as personal income. You do not pay labour market contribution of your benefits.
How do you want your savings to grow?
You decide how your pension savings should be invested. You can choose between VækstPension and LinkPension.
You pay personal income tax on your benefits
Your monthly benefits under the pension scheme are taxed as personal income. You do not pay labour market contribution of your benefits.
Combine your annuity pension scheme with Livrente+
If you need to save more on annual basis than what is possible with your annuity pension, it is a good idea to contribute to a Livrente+ scheme. Such contributions are fully tax deductible.
At the same time, you will get a higher degree of flexibility when you combine the two savings types:
- During the savings period, you can rest assured that your savings will be paid to your surviving relatives if you die before you retire.
- Livrente+ ensures that you will get the full benefit of your tax deduction because the amount of DKK 63,100.00 (2024) per year, which is deductible under your annuity pension, is left untouched
- Annuity pension provides the most options when you retire. You can choose whether the pension savings are to be paid over 10-30 years or whether you need this part of the savings to be changed into lifelong payments. You can make your choice immediately before you retire.
If you die before retirement age
If you die before you retire, your family may choose to receive the value of your life annuity as a lump sum or as annuities. Such benefits are subject to tax. If you have nominated your spouse or registered partner as beneficiary for your pension scheme, he or she does not have to pay estate tax.
If you die after retirement age
If you die after you have retired, your family may receive your life annuity. However, you have to choose that before payments start.
You may choose to provide for your family for a number of years, or you may choose to provide for your spouse until he or she dies. Such benefits are subject to tax. If you have nominated your spouse or registered partner as beneficiary for your pension scheme, he or she does not have to pay estate tax.
Myths
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I will not be able to benefit from the life annuity
False:
Danish life expectancy increases significantly these years. In 7 out of 10 marriages, one spouse reaches an age of at least 85 years. When so many people get older, the annuity pension may not always be enough for the rest of their lives. Therefore, it might be a good idea for you to choose Livrente+ which will secure you an income for the rest of your life – no matter how old you get. -
The money is lost if I die
False:
Most people want as much as possible of their savings to be paid to the closest family if they die before they retire. With Livrente+, you decide whether:
- your savings are payable to you only
- your surviving relatives should be guaranteed benefits for a period
- your spouse or cohabitant is to receive benefits for as long as he or she lives if you die first. Your spouse or cohabitant can also choose to receive the pension benefits as a lump sum.
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My annuity pension will be reduced if I want my surviving relatives to receive benefits under my life annuity
False:
With Livrente+ you can be certain that no part of the allowable deduction for your annuity pension is used to pay for the insurance that guarantees your surviving relatives payment when you die. Therefore, Livrente+ allows you to make the most of your annuity pension.
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Taking out life annuity is difficult because I have to provide health information
False:
You do not have to provide health information if you choose a Livrente+ pension scheme. And you do not have to do so if, at the date of retirement, you want to provide for your spouse and/or surviving relatives.