Private Pension
Your Pension. Your Choice. Our Advice
pension—not a one-size-fits-all solution.
Private Pension
Your pension is likely your largest asset. Yet it’s an area that very few people pay attention to. Contributions are being made. The risk profile has been selected. The insurance coverage was set up at a time that suited your needs back then—not necessarily your current needs. This is precisely where many pensions quietly drift away from the reality they’re actually meant to reflect. A private pension with FR is all about peace of mind.
The peace of mind that comes from knowing:
- How Your Savings Are Invested
- What You Pay in Fees
- Whether Your Insurance Coverage Fits Your Current Life Situation
- Whether your plan will work—even in the long run
When we review a pension plan, we often find that it no longer reflects the life you’re living today or your actual risk tolerance. Some people pay more than necessary. Others have coverage they don’t use, or lack coverage where it really matters.
It's not about making changes at any cost. It's about knowing what you have and what it means when the day comes that you need your retirement savings.
At FR, you’ll receive a personalized assessment of your retirement savings—considered in the context of your overall financial situation and your plans. The goal is for you to make informed decisions and take control of your finances—both now and in the future.
Our Process
How to Get Started
When you contact FR, we start by providing an overview of your pension and your options. For many people, their pension plan only becomes fully clear once it has been thoroughly reviewed.
1. We provide an overview
The process begins with a brief phone call, during which we’ll discuss your background and send you a link to request your pension information report. We’ll ask relevant questions about, for example, your marital status, housing situation, debt, and family circumstances, so that we can address your specific situation.
Covers the entire process: Initial assessment, analysis, and preparation; a 1-hour, 15-minute in-person meeting; and a written report with recommendations.
2. You'll receive a thorough and personalized review
The meeting lasts 1 hour and 15 minutes.
During this meeting, we’ll review your pension plans with you—including:
Savings and Investments
Costs
Insurance Coverage
Your Ideal Situation as a Retiree
After the meeting, you will receive a written summary of our conclusions and recommendations.
You'll receive specific recommendations and a clear picture of what your choices mean for you—both now and in the future.
3. Further Discussion
If you’d like our help implementing these changes, we’ll enter into a collaboration agreement and handle the practical implementation—such as adjusting your investment, changing your coverage, or transferring your plans.
We’ll follow up regularly to ensure your pension continues to meet your needs.
Savings Products
There are other pension products in the industry, such as lump-sum pensions and self-directed pensions, but they are all closed to new contributions and therefore can no longer be used to save for retirement. If you have questions about your product, please contact us—we have in-depth knowledge of all products, both those that are “active” and those that are “inactive.”
Retirement Savings
The only retirement savings plan that can be withdrawn in a lump sum and is tax-neutral. In other words, contributions are not tax-deductible, but no tax is owed on the withdrawal.
However, there is a cap on how much can be contributed per year: in 2026, you can contribute 9,900 DKK if you are more than 7 years away from your state pension age—and 64,200 DKK if you are 7 years or less away from retirement.
Advantage: Only 15.3% pension return tax is payable on the return, compared to up to 42% tax on returns from unrestricted funds.
It is the only way to ensure a lump-sum payment upon retirement.
Annuity Pension
The backbone of most people’s retirement plans. Payments are made on a regular basis over a period of between 10 and 30 years. Contributions are tax-deductible, but you must pay tax on the payments you receive.
There is also a cap on the amount of the contribution here—in 2026, it will be 68,700 DKK.
Advantage: Since the payout period is not determined until the moment you retire, you can influence the amount of your payout by adjusting the number of years over which it will be paid out. This allows you to “boost” your retirement finances for a number of years—for example, during the years when you expect to be most active with travel, spending time with grandchildren, and the like.
Lifetime Pension
Also known as an annuity. Payments are also made on a regular basis, but in this case, they continue for life. In other words, payments only stop when you die. The contributions are tax-deductible, and you must pay tax on the payments you receive.
There is no upper limit on the amount of the contribution (other than that it must be deductible from the employee's salary).
Advantage: It ensures that you’ll never run out of money—even if you live to a very old age. It provides a solid financial “foundation” for your retirement savings.
Our comparison tool finds the best option for you
At FR, we compare retirement savings plans across banks, pension funds, and pension companies on an informed and realistic basis. We look at the actual costs, your time horizon until retirement, and the expected returns based on semi-annual forecasts from the Return Council, the independent panel of experts that sets common and professionally grounded return expectations for the entire pension industry.
This means you won't get gut feelings or standard estimates. Our comparison tool, Otium, provides you with documentation.
The result:
- A clear overview of differences in costs and expected returns
- Highlighting areas where you could potentially improve
- A concrete and reliable basis for decision-making
We simplify the complex and show you, in black and white, what’s most cost-effective for you.
Products
Insurance Products
We make sure that your savings and insurance policies work in tandem with your retirement plan. There are many different insurance products on the market, and not all of them are offered by every provider in the industry. Here you’ll find the most common ones—the ones you can expect to be offered by all providers.
Life Insurance
Provides your loved ones with the financial security they need to move forward with their lives. The payout can, for example, be used to pay off the mortgage on your home, cover recurring expenses, or help your family maintain their accustomed standard of living for several years.
It is typically set up as a lump-sum payment, so that the surviving spouse will receive a lump sum that can be used freely according to their needs and wishes. A lump-sum payment is typically tax-free, and if it is paid to a spouse, no estate tax is due on the amount.
This also means that the amount you pay for life insurance is not tax-deductible.
It can also be set up as a recurring payment over a period of 10–30 years. This provides a steady financial supplement to replace the deceased’s income. The recipient of the funds determines the payment period—and may also choose to convert the payments into a lump sum.
This type provides a tax deduction for the amount you pay into it; however, the survivor (beneficiary) must pay income tax on the payments received. If the regular payments are converted into a lump sum, a tax of 40% of the lump sum must be paid.
Which type should you choose? It really depends on the individual—it all comes down to which solution you feel most comfortable with.
There is also a special type of life insurance designed specifically for children. It is most often called a “child’s pension” or “child’s annuity” and guarantees your children a certain amount each year from the time of your death until they turn 21 or 24.
It is intended to provide children with some financial assistance—not so they can live off it—it is simply not possible to set up a payment of that size—but as help, for example, while they are in school.
The premiums you pay for the insurance are tax-deductible—which means that tax must be paid on the payouts. The clever part here is that the amount falls below the “tax-free threshold,” so the children won’t have to pay tax on the money.
Loss of earning capacity
Provides you with a steady income when you are unable to work due to illness or an accident. This coverage gives you financial peace of mind and helps you maintain your daily routine and current standard of living if you lose your ability to work, either fully or partially.
It works in conjunction with the public benefits that are triggered by a loss of earning capacity—such as sick leave benefits, resource program benefits, and early retirement benefits.
All in all, this can ensure that you continue to have exactly the same income you’ve always had, so you can stay in your home, your children can continue attending the same school, and so on.
Payments are taxed as ordinary income—though no AMB is paid—and your insurance premiums are tax-deductible.
It is important to have the right coverage so that you are not underinsured—and thus lose income—or overinsured—and therefore pay for insurance coverage you will never benefit from.
We can help you calculate your coverage so that, together with government benefits, it matches your income exactly.
Health Insurance
Gives you quick access to diagnosis and treatment in the private healthcare system, so you can avoid long wait times. The insurance covers your expenses and helps you get through an illness quickly and with peace of mind when you need it.
These may include, for example, expenses for chiropractic care, physical therapy, or acupuncture—but services such as counseling, specialist doctors, private hospitals, and private imaging clinics are also among the services for which you can expect financial assistance under this insurance coverage.
It does not provide a tax deduction, but on the other hand, you do not have to pay tax on the benefits you receive.
Critical Illness
Pays out a tax-free lump sum if you receive a serious diagnosis, such as cancer or a heart condition. The money is yours to use as you see fit—whether to provide peace of mind, pay for additional treatment, or give your finances some breathing room during a difficult time.
This payment provides financial freedom during a difficult time—for example, to take a leave of absence from work, pay off debt, or seek medical treatment abroad.
The insurance payout is made in a lump sum and is tax-free. This means that the premiums you pay for the insurance are not tax-deductible.
Investment
How your pension is invested has a major impact on how much your pension will be worth over time. Yet for many people, the decision about where to invest was made once and has rarely been reconsidered since.
Most people choose an investment profile based on the categories Low, Medium, or High Risk, but a risk profile is far more nuanced than that. It depends entirely on your time horizon and how the investment fits into your overall financial situation. If we don’t look at the big picture, we won’t get an accurate picture. In addition, your retirement savings need to continue generating returns even after you’ve retired—typically for 15 years or more—which makes it even more crucial to make a well-considered choice.
Investing isn't about finding the perfect solution. It's about choosing a path that's right for you and understanding the consequences of the choices you make.
Our approach is based on low-cost passive investing, because we know what costs entail, but we never know what returns we’ll get—unfortunately, we don’t have that crystal ball. Over time, costs have a major impact on your total return. Small differences in percentage points can add up to significant amounts over many years.
Passive investing—which sounds a bit boring—is simply what we call index investing, which tracks an index; this could be a global index, a European index, or some other type, and it doesn’t mean that no choices are made.
This means that we typically recommend broad, cost-effective solutions rather than expensive attempts to beat the market.
We evaluate the investment in light of your time horizon, your overall financial situation, and your need for stability—both during the savings phase and the payout period—and we review and present the solutions that are relevant to you so that you can make an informed decision.
If you have specific requests—such as regarding sustainability or the exclusion of certain markets—we will take them into account in our assessment, based on your needs.
We monitor developments on an ongoing basis. If we determine that an adjustment to your investment profile may be appropriate, we will notify you so that you can make a decision.
Ultimately, investing isn't about finding the perfect solution. It's about choosing a path that's right for you—and understanding the consequences of the choices you make.
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If you have any questions or would like to discuss your options, our customer coordinators and administrative staff are ready to help you.