Is PFA Traditional the best option for you?

If your pension plan is placed in PFA Traditional, you ought to consider whether this is still the best solution for you.

Savings in PFA Traditional

In PFA Traditional, your savings are invested in the average interest rate environment, which generates steady returns. The low level of interest rates and the more stringent regulations mean lower returns, and therefore it is a good idea to consider whether this is still the best solution for you or whether the market rate environment is a better option.

In PFA Traditional you are ensured a minimum payout. If you switch to market rate in PFA Plus, the minimum payout lapses and your future payouts will depend on the return on the financial markets.

Read more about the difference between PFA Traditional and PFA Plus

PFA Plus offers the possibility of a higher return

You can choose between four investment profiles that differ in risk and return potential. The greater the risk you are willing to take, the higher the return potential.

View your return at My PFA

In the market rate environment, the return follows the development on the financial markets, and the full return is added to your savings immediately. This is not the case with the average interest rate environment. With average interest rate, the return is evened out over a number of years, which means that you receive a steady rate of interest in good as well as bad years, and you are always ensured a minimum payout.

Read more about investments in PFA Plus

Of course, no one knows for certain how the financial markets will develop. That being said, PFA assesses that generating returns will generally be easier in the market rate environment than in the average interest rate environment as market rate allows PFA greater investment freedom,” Carsten Holdum, PFA’s Consumer Economist and Customer Representative, says.

Transfer your savings to PFA Plus and potentially get a transfer allowance

In the market rate environment, you are not ensured a minimum payout. This means that if you transfer your savings from PFA Traditional to PFA Plus, PFA is often able to grant a transfer allowance, which has been calculated individually, to your savings plan. Together with your savings, the allowance makes up the total financial value of your pension savings at the time of the transfer.

The transfer allowance is a lump sum that will be transferred to your savings plan in PFA Plus. You can see the size of your transfer allowance as well as transfer your savings at mitpfa.dk once your PFA Plus plan has been established. The transfer allowance is calculated at the end of each month based on the current market conditions etc. in accordance with the rules laid down by the Danish Financial Supervisory Authority.

Book consultation

PFA recommends that you book a pension consultation to get an overview of which solution that suits you best.

Please book a consultation through the online booking portal or by contacting PFA at (+45) 39 17 60 19.