Tax and tax assessment

Your request for payouts will be processed as soon as possible.

If you are aged 60 or over and request payouts via the self-service portal, we will, as a general rule, have processed your account within one to two days. However, it may take longer at weekends, on public holidays and over the New Year period. 

When calculating the total, we deduct tax on returns (pension return tax) and management fees. You will receive a letter from us stating the calculated and transferred amount.

It will take a few days for the amount to be transferred to your bank account. This is because all payouts are consolidated as part of a liquidity process, which helps to manage the buying and selling of investment assets within members’ portfolios. Furthermore, the payment has to go through NemKonto and the banks. 

If any details regarding your NemKonto or bank account are missing during the process, this will delay the payouts. 

Returns are credited to members’ accounts on the basis of their individual shares in the portfolios and the LD rates applicable on the day. LD rates are updated on Danish banking days and are determined on the basis of stock market prices and the recognition and measurement of assets, liabilities, income and expenses in the individual portfolios.

You can view the current LD rates for the portfolios under ‘Returns & Risk’.

Most members have all their savings in LD Discretionary, and for them, only the price of LD Discretionary shares affects the value of their savings.

If your savings are invested across several different portfolios, the value of your savings is affected by the performance of the portfolios you have chosen, with the portfolios in which you have invested the most money having the greatest impact. The value of your savings, as stated in letters from The Cost-of-Living Allowance Fund or when you log in to ld.dk, reflects your share of the total assets on that particular day. The value changes from day to day.

You do not need to report the payouts to the Danish Tax Agency yourself. LD Pensions will take care of that.

For the vast majority of members, the tax due to the state has already been paid. The tax has been paid if you agreed that LD Pensions could pay it on your behalf before you turned 61, in return for a reduction in the tax due.

If you are one of those who have not yet paid the fee, you can view a provisional calculation of the fee by logging into your account here on ld.dk. You can also find this information in your account statement from LD Pensions.

For all pension schemes, an annual tax of 15.3% of the annual return must be paid. LD Pensions pays the pension return tax on the returns generated by members’ savings. We deduct a proportionate share of the tax from your membership account based on the return you have received during the calendar year. 

If your annual return is negative, we will deduct DKK 0 in pension return tax. Pension return tax will not be deducted again until the entire negative return on your account has been offset by a positive return. 

If you opt for payouts before a positive return has offset a negative return from the previous year, no pension return tax will be deducted at the time of the payouts. However, you will not benefit from 0% taxation until a previous loss has been recouped. 

The tax rate on pension returns is 15.3 per cent, calculated on the basis of the return for the year. In LD Pensions, the amount deducted is actually slightly lower, as a small portion of the return is not taxed. This is because The Cost-of-Living Allowance Fund was established before 1982. 

Under the law, it is LD Pensions that is liable for tax. In most other pension schemes, it is the individual member who is liable for tax. In practice, this difference means that you cannot offset a loss on your savings in LD Pensions against a positive Return on other pension schemes. When it comes to the taxation of returns in LD Pensions, you can only benefit from paying 0 kr in tax on a negative return by deferring your payouts until the negative return has been offset by a positive return.

New rules introduced in 2015 made it possible to receive a tax credit in the form of a reduction in the tax payable to the state.

One of the conditions for receiving the tax credit was that the tax had to be paid before the member turned 61. LD Pensions ensured this by offering to pay the tax before the deadline. You had the option to decline this offer.

Once the tax had been paid, we renamed your savings account LD Retirement Savings. This makes it easy for you to see whether you have paid the tax. 

For members who became eligible for payment before the age of 60, the discount could also be granted under certain conditions.

Find out more about the tax credit

During public holidays and at the end of the financial year, payouts and transfers to other pension schemes may take longer than usual.

The financial markets may be affected by significant price fluctuations, which mean that investment assets cannot be valued in a prudent manner. In such cases, LD Pensions will also be unable to quote prices for the portfolios, and we will be unable to process any payouts or transfers of funds.

In exceptional cases, technical or administrative issues may delay the processing of payouts.