Pensionsforsikringer

Pensionsforsikringer, often translated as pension insurance or occupational pension, are a type of financial product designed to provide individuals with a regular income during their retirement years. In many countries, these are established through agreements between employers and employees, or can be set up independently by individuals. The primary purpose is to accumulate savings over an individual's working life, which are then paid out in the form of an annuity or lump sum upon reaching retirement age.

Contributions to a pensionsforsikring can be made by the employer, the employee, or both. These contributions are typically invested by the insurance company or pension fund in various financial instruments such as stocks, bonds, and real estate. The performance of these investments directly impacts the final value of the pension pot. Tax advantages are often associated with these schemes, encouraging both employers and individuals to contribute.

When an individual retires, they usually have a choice regarding how to receive their pension. This often involves converting the accumulated capital into a regular stream of income for the rest of their life, known as an annuity. Alternatively, in some cases, a portion or the entirety of the accumulated sum can be withdrawn as a lump sum. The specific rules and benefits of pensionsforsikringer vary significantly depending on the country's legislation and the terms of the individual insurance policy or pension plan.