Early Pension withdrawal when you leave Denmark

13POSTS

6 years ago

I am non EU citizen, working in Denmark for last 1.5 years. My current pension scheme is like, my employer & I contribute & pension payment each month is not tax detected.

Now, I didnt realise at the time of enrolling that if & when I want to withdraw the pension, I have to pay 60% tax on that pension. Otherwise, I have to wait till 68, which is absurd given where I am from, its 60 the retirement age.

There seems to be another plan where I could be tax deducted now but can take the money with me.
I dont expect to permanently settle in DK. So, I want to get the most value for my money.

Is pension scheme mandatory ?
If not, whats the advice. Does it makes sense to not do pension contribution at all or contribute and but make it taxable ?
I have scheduled meeting with my pension company (a month away). So, any help/advise here before it would be helpful .

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Nellie Berg Denmark Expert

1161POSTS

6 years ago

The pension scheme isn't mandatory.

For an expat it may give sense to get a larger monthly pay instead, but before you take the decision, I would wait until I had had the meeting with the pension company.

Today, I would say that there are two many unknown factors to take the right decision.

/Nellie

vb21 Active member

33POSTS

5 years ago

as per my employment contract, some money will be added by employer in pension account and some part will be deducted from my monthly salary as pension.
if later in 2 or 3 years i move back to india, will i get my pension amount back.

Nellie Berg Denmark Expert

1161POSTS

5 years ago

Hi vb21,

Is above note a question or a piece of information?

1) Will it be a pension scheme you can take with you when you leave Denmark, then it's taxable now.
2) If you'll have to wait until retirement, it will not be taxated now, but first when you retire. The first one is a special edition for expats, the other the normal one for Danes.

/Nellie

vb21 Active member

33POSTS

5 years ago

Hi Neliie

This is a question.
My company has provided pension scheme as 16% paid by employer and 5% paid by employee from monthly salary.
My question is if i leave DK in 2-3 years what will happen to pension amount.
Can i get this amount on leaving DK.
Thanks

Nellie Berg Denmark Expert

1161POSTS

5 years ago

Hi vb21

Regarding the taxation of the pension scheme, and which kind of a pension scheme you should choose, I suggest to you that you read this leaflet from DTU. There is much general information to find here, also about the pension scheme. Which one will be the best? Only time will show that.

When here, choose:
Welcome guide for international employees and PhD students (pdf), information for international employees before and after arrival.

/Nellie