Contributions to Danish occupational pension schemes increased to DKK153bn in 2023, a rise of DKK 5bn, according to Insurance and Pension Denmark (I&P Denmark).

The research also revealed that contributions to employer-administered retirement savings more than doubled in 2023, from DKK 3.9bn to DKK 8.3bn.

These increases follow the introduction of improved options for deposits into pension savings, which came into force in 2023. The Danish parliament abolished the deduction of the state pension from savers and spouses’ earned income, therefore removing one of the major obstacles facing retirement savers. It also raised the maximum annual contribution.

I&P Denmark said the increased use of retirement savings means there will be more tax revenue, as more Danes are paying into retirement savings rather than into tax-deductible schemes.

Starting this year, part of this tax revenue will be used in Denmark’s green fund, which supports the green transition and climate adaptation to deal with extreme weather.

Commenting on this, I&P Denmark CEO, Kent Damsgaard, said: “Retirement savings have really become a hit with Danes after politicians have made it more attractive, so that retirement savings can now be extended to everyone in need.

“This is a good development, as the scheme is an important element in ensuring the best possible pension in retirement. This development is good for pension savers and good for the green transition.

“The political agreements that improve retirement savings are intended to generate tax revenue for the green fund. And they have succeeded, so the state has secured income for important and much-needed investments in climate adaptation.”

Damsgaard pointed out that the industry has made a great effort to adapt its products and ensure that pension savers benefit from the scheme. 

"The pension companies have clearly shouldered their share of the responsibility by adapting their products so that they both benefit pension savers in the best possible way and at the same time fulfil the political expectations in relation to financing the green fund," added Damsgaard.

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