This is the contribution to your pension scheme
Contributions to the pension scheme from yourself and your employer are described in your employment contract.
The pension contribution is net of labour market contribution, the price of insurance cover and fees. The remaining amount is put towards savings.
Voluntary contribution
If you want to save more for retirement, you can make voluntary contributions in addition to the compulsory contributions.
Savings
- You can contribute to an annuity pension and/or a life annuity pension.
- An annuity pension is paid out on a monthly basis over the agreed period once you have retired. Every year, there is an upper limit to how much you can contribute to an annuity pension.
- A life annuity pension is paid out on a monthly basis for as long as you live. There is no upper limit to how much you can contribute to a life annuity pension.
- Unless otherwise notified to AP Pension, contributions will be paid into an annuity pension. If the limit on contributions to the annuity pension is exceeded, we will pay the excess contribution into a life annuity pension.
- If you have an existing pension scheme, you may keep any right to an earlier payout age if you transfer such scheme within the first six months.
Your financial cover
When we have set up your new pension scheme, you will receive a welcome letter. Your can then log in to the AP Pension customer portal, www.appension.dk/minpension, and see an overview of your pension scheme.
If you do not make any changes, your insurance cover will be the basic cover described below.
The condition for being covered by the following insurance is that you satisfy certain health requirements. If you do, the following applies:
- Your insurance cover for loss of earning capacity, certain critical illnesses and death remains in force until you reach the state pension age.
- You can adjust your basic cover without having to provide health information within six months of the setting up of your AP Pension pension scheme, within the range specified in the cover limits.
White-collar emplyee
| Insurance cover | Basic cover | Cover limits |
| Loss of earning capacity Monthly payment |
Salary scale* | 40 % - 80 % of salary |
| Lump sum disability benefit until age 60 Lump sum payment |
- | DKK 0 - 1,605,000 |
| Waiver of contributions Monthly payment |
Compulsory pension contributions | Voluntary pension contributions Up to 30 % of salary |
| Certain critical illnesses Lump sum payment |
30 % of salary, min. DKK 150,000 | DKK 150,000 - 805.000 |
| Certain critical illnesses for children (expiry at 21 years) Lump sum payment |
DKK 150,000 | - |
| Death Lump sum payment |
200 % of salary + pensions savings | 200 % - 800 % of salary |
| Children's pension until the child reaches 24 years of age Monthly payment |
- | 0 % - 25 % of salary |
*If your scheme is non-tax-deductible, you will get 60 percent of your salary as a basis cover
Students
| Insurance cover | Basic cover | Cover limits |
| Lump sum disability benefit until age 60 Lump sum payment |
DKK 100,000 | DKK 100,000 - 1,605,000 |
| Waiver of contributions Monthly payment |
Compulsory pension contributions | Voluntary pension contributions Up to 30 % of salary |
| Certain critical illnesses Lump sum payment |
DKK 100,000 | DKK 100,000 - 805,000 |
| Certain critical illnesses for children (expiry at 21 years) Lump sum payment |
DKK 50,000 | - |
| Death Lump sum payment |
DKK 200,000 + pensions savings | DKK 200,000 - 800 % of salary |
You can view your insurance at www.appension.dk/minpension and read more about them in the insurance terms.
Do you wish to increase insurance cover?
You can increase your insurance cover if you want to and the health and work-related conditions are satisfied.
You will be required to provide additional health information if you wish to increase your insurance cover more than six months after joining the AP Pension scheme.
Investing your pension savings
You are free to choose how your pension savings should be invested. Unless you choose differently, your payments and savings will be placed in the AP Active/AP Focus life cycle fund which matures closest to the time of your retirement.
Average return - AP Stabil
Stable interest: If you want secure investments, AP Stabil would be a good choice. The interest on your pension savings will typically apply for one year at a time.
Life cycle - AP Active
Decreasing risk: If you want your savings to be invested in such a way that the risk decreases the older you get and without having to do anything yourself, you can choose the AP Active fund that matches the year when you expect to retire.
Fixed risk profile
Low, medium, high and very high proportion of shares: If you want your pension savings to be invested with a fixed risk profile, you can choose between four profiles.
External funds
Low-very high risk: If you want to invest your pension savings yourself, you can choose between a number of funds.
AP Bæredygtig
AP Pension’s new, sustainable investment line: If you wish to invest your pension savings sustainably such as in windmills, construction or forestry.
Cost (expenses)
The table below shows the costs and fees that apply to the pension scheme as of 1 December 2019. AP Pension may adjust cost and fee levels on an on-going basis.
| Administration and service costs | |
| Monthly policy charge | 1 % of payment* |
*However, maximum DKK 1,000
| Investment costs | |
| Fees related to Investment fund buying and selling | 0,25 %* |
*However, maximum DKK 155 per transaction per fond