You can have the savings you have held with The Cost-of-Living Allowance Fund since 1980 paid out when you turn 60. You can also leave the savings in the fund if you do not need the money straight away. Before you make a decision, there are a few things to consider.
When does it make sense to opt for payouts?
It is a common rule of thumb that you should use your ordinary tax-free savings before drawing on your pension funds. This is partly because, for most people, the capital gains tax deducted from pension schemes will be lower than the tax on interest earned on bank accounts and ordinary tax-free savings accounts.
When deciding whether to withdraw the money from your LD Account, the most important question is therefore: When do you intend to use the money? If you won’t need the money for another one or two years, it will probably be beneficial to leave your savings in the account and let them accrue Return until you withdraw them.
The return credited to your LD Account is generated by The Cost-of-Living Allowance Fund investing members’ assets in shares, bonds and other securities. Returns vary over time, and there may be periods of negative returns.
How payouts are made
Once you are eligible for payouts, you can request payouts using your MitID via ‘Log in’. You must meet one of the conditions set out in the payout rules in order to receive your savings.
Download the payout request form
If you do not have a MitID, you cannot log in and request payouts yourself. Instead, you can download a payout request form from one of the boxes below. Please complete the form digitally before printing and sending it, as this will make it easier for LD Member Service to read it.
The money is transferred to NemKonto
It usually takes around two weeks from the time you request payouts on ld.dk until you receive the money.
If you have initiated payouts by submitting a payout request form, please allow two weeks from the date The Cost-of-Living Allowance Fund receives your form until the money is transferred to your account. It will take longer if you are not eligible for payouts on the day we receive the form. We will only initiate the payouts on the day you become eligible for payouts.
For example, if you are awarded an early retirement pension on 1 August, it will take two weeks from that date for the money to appear in your NemKonto, regardless of whether you submitted your form well in advance. The same applies if you submit the form well in advance of your 60th birthday. The payment will be transferred 8–10 days after you turn 60.
During public holidays and at the turn of the year, processing times may be slightly longer than usual. Delays may also occur in transfers between NemKonto and the banks, over which The Cost-of-Living Allowance Fund has no control.
If you live abroad
If you are aged 60 or over and have both a NemKonto and a MitID, you can arrange for payouts to be made by logging into your LD Account.
If you live abroad and do not have a NemKonto, you must enter your account details and attach proof that the account belongs to you.
