How the Danish pension system works
Folkepension, the Danish state pension, has two parts. The basic amount (grundbeløb) is DKK 90,528 a year in 2026 and does not depend on other income. On top comes the pension supplement (pensionstillæg): DKK 104,748 a year for singles and DKK 53,604 per person in a couple, reduced by 30.9% of pension income above DKK 99,200 (couples: 16% of their joint pension income above DKK 198,800). A full pension requires living in Denmark for 9/10 of the time from age 15 to pension age; shorter residence gives a proportional share. The pension age is 67 for people born up to 1962, 68 for 1963–1966, 69 for 1967–1970 and 70 from 1971. Folkepension cannot be drawn early, but it can be deferred for up to 10 years (opsat pension); deferring one year from 67 adds 5.71%.
ATP Livslang Pension is the second statutory scheme: full contributions from age 18 give at most DKK 25,800 a year at a pension age of 67. Without a statement the calculator estimates ATP from your contribution years and assumes it only keeps its purchasing power, so it shrinks relative to wages. Many employees also have a labour-market pension (arbejdsmarkedspension) through their collective agreement; by default the calculator assumes 12% of salary (employer plus employee) from the start of your career, at the earliest age 20, invested until retirement and paid out as lifelong income. For exact figures, enter your ATP and labour-market pension per year, or today’s balance, from pensionsinfo.dk (MitID).
The calculator adds folkepension, ATP, labour-market pension and your own savings, compares the total with your target share of your last salary and shows the monthly saving needed to close the gap. It fills the tax-favoured products first: aldersopsparing up to DKK 9,900 a year (DKK 64,200 with at most 7 years to pension age) – no deduction now, but the payout is tax-free and does not reduce the pension supplement; ratepension, deductible up to DKK 68,700 a year; and livsvarig livrente (lifelong annuity), deductible without a ceiling. Payouts from the last two are taxed and reduce the supplement. Anything beyond that goes into unrestricted saving. All amounts are gross, before tax.
Folkepension, ATP and labour-market pension payouts are taxed as personal income with municipal and bottom tax, plus middle and top tax on higher incomes; no labour-market contribution (AM-bidrag) is deducted, as it was paid on the contributions.