Economies of scale represent the main reason why PFA has some of the lowest costs on the market. As the largest commercial pension company in Denmark, we are:
- able to divide costs between many people, making it less expensive to be a PFA customer
- first in line for attractive investment options
- in an advantageous negotiating position when we select external business partners - nationally as well as internationally
Overall, this means that we can offer our customers the best and most cost-effective solutions.
Low costs due to economies of scale are just one of the elements in PFA's business model.
Low investment costs
Low investment costs are vital to the savings plan
When a company selects its pension supplier, one of the most important criteria is low costs. The reason being that the lower the cost, the more is left for savings for the individual employee. But, it is important to note than some types of costs affect the final value of the savings plan more than others.
The example below illustrates the consequences of low costs over a 30-year savings period. Low investment costs mean much more to the individual customer than low insurance prices and administrative costs. The illustration shows the effect over 30 years in per cent.