Danish pension contributions totalled DKK 140bn in 2021, setting a new record, according to Insurance and Pension Denmark (I&P Denmark).

It is DKK 7bn more than was contributed in 2020 and the largest year-on-year increase since 2010.

Commenting, I&P Denmark CEO, Kent Damsgaard, said: “Pension contributions grew in 2021 to an impressive DKK 139.8bn. That is DKK 7bn more than the year before, and that is actually a further record, because the growth from year to year has not been higher since 2007.”

I&P Denmark said that it is largely labour market pension contributions that are growing – with growth amounting to almost DKK 6bn. This is likely due to the historically high growth in employment, which increased by almost 80,000 people in 2021.

“This is fantastic news for both the individual pension saver and society as a whole. The development emphasises that we have come through the coronavirus crisis well, and this provides good stability for meeting the challenges that the unfortunate situation in Ukraine will entail for Denmark as well,” Damsgaard added.

“The Danish economy is in a favourable starting position, but there is unfortunately much to suggest that we may risk a proper shake-up in 2022 with high inflation, low growth and rising unemployment. The development depends entirely on how energy prices develop, and this is closely linked to the development in the war in Ukraine.”

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