Turn-of-year schedule for pension insurance premiums

16.12.2019

By saving under pension insurance you can improve your pension cover. The tax authorities provide a tax deduction benefit on premiums paid into pension insurance. Insurance premiums are deductible from capital gains up to EUR 5,000*) per year.

Make an additional investment in your pension insurance well before the turn of the year and benefit from your right to a tax deduction

You can check the amount of premiums you have paid in 2019 on Mandatum Life’s Web Service and make an additional investment in your contract. Mandatum Life’s Web Service is accessible via Danske Bank’s eBanking under ‘Insurance’ and ‘Mandatum Life’. Select your pension insurance on the ‘Policies’ page and go to ‘Premiums’. You can make an additional investment through the ‘Make an additional investment’ link.

Final payment dates 2019

We recommend that pension insurance premiums be paid in time during December and, using Danske Bank’s identifiers, at the latest on 31 December by 6.30 pm.

Insurance premiums paid later than this will be entered as insurance premiums for 2020 and they are not deductible in taxation in 2019; instead they will be deductible from tax in 2020.

You can view the premiums that have been paid into your pension insurance on the Web Service

At any time, you can check the amount of premiums paid into your pension insurance on Mandatum Life’s Web Service. We will also send you, at the start of 2020, an account of the premiums that you have paid, so that you can check the amount of premiums. The annual pension insurance notifications will be mailed to policyholders by the end of February.

Your pension insurance notifications are also available on the Web Service. If you have opted for the paperless service, the notifications will not be mailed to you. You can read all of your pension insurance notifications in the Web Service’s archive.

The taxation of private customers’ individual pension insurance and the spouse’s right to tax deduction

Mandatum Life will report the premiums you have paid on your pension insurance directly to the tax authorities, who will automatically carry out the tax deduction. There is no need to send a separate breakdown of paid premiums to the tax authorities, but the breakdown you have received from Mandatum Life is worth saving for six years for verifying your taxation.

In the spring you will receive a prefilled tax return for 2019, which shows the pension insurance premiums.

Pension insurance premiums are deductible from capital gains up to EUR 5,000 per year. If you have no capital gains or if your capital gains are not large enough for the pension insurance premiums to be fully deducted from them, the tax authorities will deduct the tax either fully or partially directly from income tax as a so-called ‘deficit credit’.

If you also have voluntary individual pension insurance taken out by your employer, to which premiums have been paid during the current calendar year, you can deduct EUR 2,500 in pension insurance premiums in your taxation per calendar year. Group pension insurance taken out by the employer does not impact the right to deduct taxes from your personal pension insurance.

Each spouse deducts the premiums for their personal insurance in their own taxation. Insurance is considered to be the insurance of the spouse who is the insured in the policy. It does not matter which of the spouses has taken out the insurance or paid the premiums.

If the spouse does not have enough or any income or capital gains, the tax authorities will automatically make the deduction from the tax collected on the other spouse’s income as deficit credit. The spouse cannot, however, deduct the other spouse’s pension insurance premiums from his/her own capital gains.

For more information, please contact our customer service. Please note our customer service’s exceptional opening hours during the holiday season. Find them here.

*) This sum applies if you pay premiums into a single individual pension insurance. If you have several individual pension insurance policies or long-term savings accounts that you have taken out for yourself, the total combined tax-deductible amount you can pay into them is EUR 5,000 per year.