Retirement Savings Scheme Denmark : Danske Bank
Name of the Organization : Danske Bank
Type of Facility : Retirement Savings Scheme
Country : Denmark
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Retirement Savings Scheme:
With a retirement savings scheme at Danske Bank or Danica Pension, you can choose to receive your savings as a lump sum or in smaller portions, say over a couple of years, when you retire.
Related : Danske Bank Investing Pension Savings Denmark : www.statusin.org/6497.html
It is also a good supplement to the state retirement pension and other public benefits.
Who can set up a retirement savings scheme :
From 2013, anyone who has not reached the earliest age at which they can take their personal pension (pensionsudbetalingsalder) plus 15 years can set up a retirement savings scheme. For example, if you were born before 1 January 1959, the earliest age at which you can take your personal pension is 60 years, and you must therefore set up the scheme before you turn 75.
What is the earliest age at which you can take your personal pension :
You can see the earliest age at which you can take your personal pension here:
How much can you contribute per year :
You can contribute up to DKK 28,100 (2014)/DKK 28,600 (2015) a year into aretirement savings scheme held with a life insurance and pension company, a bank or a pension fund. You can make a single contribution or regular (for example monthly) contributions. The maximum amount you can contribute per year is adjusted annually.
When can you receive your benefits from the scheme :
You can start receiving your benefits when you reach the earliest age at which you can start taking your personal pension (pensionsudbetalingsalder). You must finish receiving your benefits no later than 15 years after this date. You can receive the balance of your savings as a lump sum or in several payments, and no tax or charges are payable on the payments.
You can continue contributing to the scheme even though you have started receiving benefits from it.
If you want to receive the value of your savings, either in full or in part, before you reach the earliest age at which you can take your personal pension, you are liable to pay government tax of 20%.
Contributions are subject to tax but no tax on retirement benefits:
Contributions to a retirement savings scheme are subject to tax. However, no tax or duties are charged on the retirement benefits you receive after the earliest age at which you can take your personal pension.
Earning interest on the scheme:
Depending on whether you establish the scheme through Danske Bank or Danica Pension, you have a number of options.
If you establish the scheme with Danske Bank, you have the following options:
** Danske Bank’s pooled pension funds (Puljeinvest)
** A personal custody account – you yourself invest in individual securities
** Cash deposit which earns interest set by Danske Bank. The interest rate is variable. For information on the current interest rate, contact Danske Bank or see Danske eBanking.