Tax on termination of pension scheme (surrender)

If you receive the value of your pension scheme as an “early” lump sum, that is if you receive the value before you reach your earliest retirement age under your pension scheme, the lump sum payment will be subject to 60% tax to the Danish Tax Agency. If your pension scheme is established as a section 53 A scheme, the lump sum payment will not be subject to tax.

The tax rate may be lower if the savings are paid out due to disability. This does not apply if an annuity pension scheme is paid out as a lump sum, however. In that case, the lump sum payment is always subject to 60% tax.

ISP Pension will charge you a fee of DKK 730 if you want the value of your savings paid out.

Feel free to contact us to learn more about your options. You can also log on and see your terms and conditions (in Danish only) under “Key Numbers” .