Folkepensionen

Folkepensionen is the Danish state pension system. It is a universal pension scheme that provides a basic retirement income for all Danish citizens who meet certain residency requirements. The system is funded through general taxation. Eligibility for Folkepensionen is primarily based on age and residency. To receive the full pension, individuals generally need to have been residents in Denmark for at least 40 years between the ages of 15 and retirement age. Shorter residency periods result in a reduced pension amount.

The pension is composed of two parts: a basic pension and a pension supplement. The basic pension is a fixed amount paid to all eligible individuals. The pension supplement is income-tested, meaning it is reduced for individuals with significant earned income or private pension income. The retirement age for Folkepensionen is gradually increasing. The pension is administered by the Danish Social Insurance Board (Udbetaling Danmark). It is intended to provide a safety net and a basic standard of living in retirement, complementing other pension savings.