Denmark’s Velliv urges govt to relieve ‘uncertainty’ of earnings offsetting in national pension

Danish pension company Velliv has urged the government to relieve “uncertainty” about whether they are going to implement the bill on abolishing offsetting of earned income in the national pension and pension supplements.

Around a year ago, the Danish parliament passed a bill that would make it possible for pensioners to receive their full pension regardless of whether their spouse or cohabitant has an income from work.

When the bill was passed, the government stated that the change would retroactively come into effect from 1 January 2023.

However, Velliv noted that it is yet to me implemented and since the latest announcement on the bill in June 2022, there has been “radio silence”.

"On Saturday, it was a year ago that a conciliation circle entered into an agreement that makes it more attractive for pensioners to work,” commented Velliv advice expert, Jens Christian Nielsen.

“However, they have forgotten to make the agreement law. We have been in dialogue with a great many customers who would like to take an extra step if the offset disappears.

“Both they and we are frustrated that the agreement is there, but the legislation is missing.”

According to calculations by Velliv, a pensioner with earned income of DKK 300,000 a year would be able to receive an additional income of around DKK 25,000 a year by abolishing offsetting of work income in the basic amount of the national pension and pension supplement.

"The intentions in the agreement are good and completely by the book,” Nielsen added.

“I am particularly pleased that it is a step to make a difficult-to-access pension area more transparent.

“In Velliv, we would like to see a simplification of the pension system implemented more widely.

“This will give an increased desire and incentive for own savings to the benefit of both the individual and for Denmark as a whole.”

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