Danish pension company Sampension has reported that its customers’ voluntary pension contributions reached their second highest level in 2022.

Its customers’ voluntary pension contributions totalled DKK 109.7m in 2022, a figure only surpassed by the 2021 level, when additional contributions hit DKK 123.8m.

By comparison, additional pension contributions by Sampension customers were DKK 71.3m in 2019 and DKK 95m in 2020.

Sampension market and customer advisory manager, Anne-Louise Lindkvist, said that 2022 was marked by inflation to the extent that Denmark experienced the highest price increases in decades.

“Even so, a great many Danes chose to pay extra into the pension last year,” she continued.

“It is remarkable and testifies, among other things, to that saving is generally of great importance to Danes, and that many also prioritize it during economically challenging periods.

"If you have room in your finances, it may be worth considering putting a little extra into your pension savings, as it provides deductions and returns over the years.

“At the same time, extra contributions can help make the expectations you have for retirement and the time of retirement a reality. Because even smaller amounts deposited now can make a significant difference to the savings over time.”

Calculations from Sampension showed that if a Danish saver deposits an additional DKK 3,000 into their pension as a 35-year-old, this will increase their pension savings by approximately DKK 16,900 at the time of retirement.

This equates to around DKK 28,200 or DKK 56,400 at retirement if a 35-year-old makes an extra deposit of DKK 5,000 or DKK 10,000, respectively.

"Although inflation seems to be heading in the right direction, we unfortunately have to expect an economic slowdown and rising unemployment in 2023, and therefore there will also be many Danes this year who experience pressure on their private finances,” Lindkvist added.

“In that situation, of course, you shouldn't have extra pension payments at the top of the priority list, but instead focus first and foremost on being able to pay the bills and get the household running.”

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