Once you turn 60, you can withdraw your LD Savings, and you will therefore also be eligible for the tax credit. However, there is no requirement for you to withdraw your LD Savings in order to claim the tax credit. You can keep your savings with The Cost-of-Living Allowance Fund for as long as you like and still benefit from the tax credit.
What do you need to do to claim the tax credit:
- If you wish to keep your LD Savings account and still benefit from the tax credit, you do not need to do anything. We will pay the tax on your savings within the time limits required for you to qualify for the tax credit. Your savings will remain with us – now as an LD Retirement Savings account.
- If you wish to withdraw your LD Savings, you must do so within 12 months of turning 60 if you want to claim the tax credit.
Members are entitled to a tax credit for up to 12 months after their 60th birthday. This applies to members who turned 60 after 1 April 2015.
Discount when switching to an LD Retirement Savings plan
By converting your LD Savings into an LD Retirement Savings account, you can benefit from a reduced tax rate. The tax is deducted from your savings and paid to the government. The amount shown in your LD Account will then be the net amount.
In kroner and øre, the value of the tax benefit increases as long as the savings remain with us and provided we generate a positive Return. We cannot guarantee a minimum Return.
Disadvantages of tax credit and LD Retirement Savings schemes
Once you have switched to an LD Retirement Savings scheme with a tax credit, your savings can no longer be transferred from The Cost-of-Living Allowance Fund to an annuity pension or an instalment pension. However, LD Retirement Savings can be transferred to a retirement savings scheme or a retirement insurance policy with another pension provider.
