The amount of pension contributions made in Denmark reached a record high of DKK 147bn in 2022, according to analysis of data by Forsikring & Pension (F&P).

The increase in pension payments last year was partly driven by a rise in the number of people in employment, with the labour market growing by 60,000 people in 2022.

While this caused pension payments linked to workplace schemes to increase, payments to private pension schemes fell.

F&P deputy director, Jan V. Hansen, described the record amount of contributions as fantastic news for both pension savers and society as a whole.

“The development shows the importance of pension schemes linked to the job, which ensure that savings are made for a secure old age,” he stated.

“When nine out of 10 working Danes save up for a pension, they also get important insurances that cover, for example, critical illness and loss of working capacity.

“In short, the pension schemes extend a safety net under the economy throughout life.”

Furthermore, the high amount of pension contributions was important for the Danish economy as a whole, F&P said, as it helps ensure a robust and long-term sustainable economy.

“The high pension savings have also stretched a safety net under the social economy in globally uncertain times,” Hansen said.

“This means that Denmark does not face the same financial challenges as other countries that do not have the same pension savings.”

Meanwhile, F&P also found that the insurance and pensions industries and their customers paid DKK 19bn in tax and duty payments in 2022.

The Treasury received DKK 9bn from the PAL tax, despite negative returns on many pension products.

Tax and duty payments to the Treasury were lower than the previous year, which F&P said was primarily due to the challenging conditions in the financial markets in 2022.

These conditions reduced returns and therefore reduced the amount of PAL tax paid.

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