arbejdsmarkedspensionen

Arbejdsmarkedspensionen, often abbreviated as AMP, is a mandatory occupational pension scheme in Denmark. It was introduced in 1991 as a way to supplement the state pension and provide a more secure retirement for Danish workers. The system is based on collective agreements between employers and trade unions, covering most employees in the private sector. Contributions are typically made by both the employer and the employee, with the employer usually contributing a larger share.

The funds collected are managed by private pension funds, which invest the money to generate returns. The specific contribution rates and investment strategies can vary depending on the collective agreement and the pension fund involved. Upon retirement, individuals receive payments from their accumulated arbejdsmarkedspension, which is in addition to their state pension and any voluntary private savings. The aim is to ensure a reasonable standard of living in old age and to reduce reliance on social welfare. The scheme is a significant part of the Danish pension system, contributing to a high level of retirement income security for many citizens.