Ratepension

Ratepension is a Danish private pension product in which savings accumulated during working life are paid out in regular installments over a fixed term, rather than for life. It is one of the two main private pension formats in Denmark, the other being livsvarig pension, which pays out for the recipient's lifetime.

Contributions to a ratepension are typically tax-deductible within annual limits; investment returns accumulate tax-free until withdrawal. At retirement, the accumulated amount is converted into a guaranteed monthly or quarterly payout for a defined period, commonly 10 to 30 years. Payouts are generally taxed as personal income when received; some plans include survivor benefits that may extend payments if a spouse is covered.

Ratepension differs from lifelong pensions in that payments end after the fixed term. If the payout period ends with the holder still alive, there is no further payout unless the contract provides an option to extend or convert. If the holder dies during the payout term, the remaining benefits may be paid to designated beneficiaries depending on the contract. Ratepension is offered by insurance companies and pension providers as part of private retirement planning in Denmark.