The Cost-of-Living Allowance Fund manages assets totalling DKK 22.7 billion on behalf of 324,000 members as at 31 December 2025. The funds originate from payments of DKK 7.7 billion which the Cost-of-Living Allowance Fund received from the state in 1980, representing the frozen cost-of-living allowances from 1977–1979.
Assets fell in 2015 as a result of The Cost-of-Living Allowance Fund making an extraordinary payment of just over DKK 10 billion to the state. This was done as part of a measure to secure a tax credit for members by bringing forward the payments for the levy, which previously was only payable at the time of payouts.
For an employee who was employed full-time during the period 1977–79, a sum of 4,368 kr was paid into The Cost-of-Living Allowance Fund. For a member who has not opted for investment funds, this amount had grown to 190,445 kr. by the end of 2025. The amount is paid out as a lump sum when the member so wishes, provided that the member has reached the age of 60 or is otherwise entitled to a payout.
Almost everyone claims the tax credit and continues to save thereafter. Once the tax had been paid, the value of a full-time account stood at 119,506 kr. at the end of 2025. That amount can be withdrawn tax-free.
More key facts...
- Attributable return after investment costs in LD Discretionary in 2025: 6.2%.
- Number of members (31 December 2025): 324,000
- Members’ assets (31 December 2025): DKK 22.7 billion
- Amount paid in by members who were full-time employees in 1977–1979: DKK 4,368
- Balance in a full-time LD Savings account (31 December 2025): DKK 190,445
- Balance in a full-time LD Retirement Savings account (31 December 2025): DKK 119,506
- Before pension return tax, an annual return of 4.7% has been credited over the last 5 years in LD Discretionary.
- Payouts: A lump sum, which may be paid out once the member has reached the age of 60.
