Almost four out of five (78 per cent) of Danes who pay into an instalment pension are unsure whether their contributions risk exceeding the annual deduction ceiling, leaving them vulnerable to unintended double taxation, research from Epinion for Sampension has revealed.

The survey of around 1,000 Danes found that 67 per cent of those contributing to an instalment pension have not checked whether their payments this year will surpass the deductible limit, while a further 11 per cent said they “don’t know”.

Only 22 per cent confirmed they had verified their contributions.

In 2025, Danes can pay up to DKK 65,500 into an instalment pension with full tax deductibility.

Any amount above that threshold is not deductible - and because tax is also charged on eventual payouts, excess contributions risk being taxed twice.

Sampension chief adviser, Helle Dalsgaard, warned that the financial consequences are far from trivial.

“Being taxed twice is hardly something anybody welcomes. Nevertheless, every year a large group of Danes risk being hit by double taxation because they contribute too much and lose the deduction,” she said.

“And it is not small money at stake – the lost deduction can amount to thousands of kroner.”

Figures from the Danish Tax Agency show the scale of the issue: in 2023, 28,500 citizens paid more into their instalment pension than was deductible, amounting to DKK 239m in excess contributions – an average of around DKK 8,400 per individual.

Dalsgaard noted that most cases arise when savers unknowingly contribute to more than one instalment pension – often after changing jobs or combining a workplace scheme with a separate bank-arranged pension.

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