PFA Invests

With PFA Invests, you can choose between four different investment profiles where you just have to choose
the one that suits you best. PFA will take care of the rest.

Changes will be made to PFA’s investment profiles as at 1 April 2025
To strengthen your long-term returns, we are making some changes to our investment profiles. Generally, you do not need to change your current choice of investment profile. However, it is always a good idea to visit our investment guide.
Learn more here

Four investment profiles – is your profile the best match for you?

Investment profiles A, B, C and D have different potentials for a good return and involve different degrees of risk. Profile A comes with the lowest risk and the lowest potential for a high return. Profile D has the greatest possibility of a high return – but also the highest risk.

In all investment profiles, the money is invested in shares, bonds, property and alternative investments through two investment funds: The Low-Risk Fund and the High-Risk Fund.

Log on to My PFA to view your investment profile. Your options depend on the agreement that you and your employer or organisation have with PFA. At My PFA, you can also view your options, and you can go through the Investment Guide and find the investment profile that is the best match for you.

 

Investment profile A

25 % of your savings will be invested in the High-risk fund. 75 % will be invested in the Low-risk fund.

The investments in the High-Risk Fund will be gradually reduced to approximately 10 % at the time of your retirement. The composition of the investments in profile A is comparable to a traditional savings plan in the average interest rate environment.

With profile A, you have the possibility of linking payout protection cover to your plan. We do not recommend this option though.

Investment profile B

50 % of your savings will be invested in the High-Risk Fund. 50 % will be invested in the Low-Risk Fund.

The investments in the High-Risk Fund will be gradually reduced to approximately 20 % at the time of your retirement.

With profile B, you have the possibility of linking payout protection cover to your plan. We do not recommend this option though.

Investment profile C

75 % of the savings will be invested in the High-Risk Fund. 25 % will be invested in the Low-Risk Fund.

The investments in the High-Risk Fund will be scaled down to approximately 30 % at the time of your retirement.

Investment profile D

100 % of the savings will be invested in the High-Risk Fund.

The investments in the High-Risk Fund will be scaled down to approximately 40 % at the time of your retirement.

View the return for the four investment profiles

PFA Climate Plus – a pension product that promotes a low-emission economy

PFA Climate Plus enables you to place your pension savings in investments that contribute to a low-emissions economy. From the outset, equities in PFA Climate Plus will emit at least 60 % less CO2 than the world equity index. The ambition is for the investments in PFA Climate Plus to be CO2-neutral by 2025 and to remove more CO2 from the atmosphere than they emit already by 2030 (measured by scope 1 and scope 2*). As with the rest of PFA’s investments, the investments in PFA Climate Plus are also selected based on respect for social conditions and corporate governance – also called ESG.

Read more about PFA Climate Plus



 
*Scope 1 relates to the CO2 that the invested companies emit from their own activities, for example their production. Scope 2 relates to the CO2 that the invested companies are indirectly responsible for, for example CO2 from energy produced for the invested companies.

Integrated gradual reduction of risk in all profiles

The greater the potential for returns, the greater the potential for losses.
 
The closer you are to your retirement age, the harder it becomes to make up for potential losses. Therefore, the investments with the highest risk will be gradually reduced as you approach retirement – the closer you get to retirement, the lesser risk will be involved when we make investments on your behalf.
The relationship between risk and return
Investment returns vary from year to year, and both shares and bonds may yield negative returns. There is often a connection between risk and return. The greater the risk you are willing to take, the greater the potential for obtaining a high return. Typically, shares generate higher returns than bonds. However, shares also fluctuate the most – which means that the risk is higher.
Risk reduction 

PFA recommends investment profile C

When it comes to risk appetite, everyone has their own preferences. Your choice of investment profile impacts your pension savings and with that your future, and therefore the proportion between risk and return should suit you.

Generally, we recommend that our pension customers choose profile C, as it is our assessment that for the clear majority of our customers, this profile has the most appropriate balance between risk and return.

That said, we always recognise that the choice of profile is a question of personal temperament and that it depends on your financial situation. Therefore, the profiles A or B may be a better option for you who have less risk tolerance. Profile D may be the perfect match if you prefer to invest your savings with the potential of high returns - even if it comes with a higher risk of incurring losses.

In all the profiles, the long-term return will typically outperform the return generated in the traditional average interest rate environment. The advantage of the profiles is that we have more freedom when it comes to investing – for your benefit. After all, having more freedom to invest means a potential for generating better return.

Get an immediate recommendation

A, B, C or D? Which profile is the best match for you? You can quickly find out by answering a few simple questions at My PFA about your return expectations and your risk appetite. All you need to do is log on to My PFA and find the guide under Investments.

 
Try the Investment Guide

When your pension is being paid out

Your savings will still be in the market rate environment and in the same investment profile once your pension is being paid out. Once you have retired, there is generally no further reduction of the investments with the highest risk in the High-risk fund with the current investment profiles.

Your savings being in the market rate environment means that your pension can either increase or decrease. When your payouts begin, we will generally determine your monthly payout for the rest of the calendar year. Subsequently, your pension payouts are generally adjusted annually, effective from January in the new year.

The pension payouts are determined based on the size of your savings and our payout principles in effect at any given time, which also contain assumptions about expected returns (payout interest). If the actual return for the year is higher or lower than assumed, the payouts may be increased or decreased. When receiving payouts from a life pension, there are also assumptions made about life expectancies which may change over time.

However, it is not just the return and life expectancy changes that have an impact on the size of the pension payouts. Factors such as costs, taxes, etc. also play a part. If we change our payout principles, including the payout interest, it may also have an impact on the size of the payouts.

Payout protection cover

Individual customers with PFA’s market rate product, PFA Plus, who have chosen the investment concept PFA Invests and have selected investment profile A or investment profile B (includes both the savings option PFA Plus and PFA Climate Plus) can also select the product called Payout protection cover for their plan. 

A payout protection cover ensures that your pension payouts will generally not drop below a certain level. If you have decided to add payout protection cover, then, as a rule, we will add this cover to your savings for ten years up to your expected retirement. This takes place via part of your savings being gradually invested in some special funds - so-called long-duration funds - with a very low risk.

From the moment where we begin to phase in payout protection cover on your savings, you can keep an eye on what proportion of your savings is invested in long-duration funds and you can also keep an eye on the secured level of cover for your payouts on an ongoing basis. The savings in long-duration funds represent the amount needed to ensure the value of the part of your pension that is linked to  payout protection cover.

The special duration funds that are used for payout protection cover are, under normal market conditions, expected to generate a lower return than the High-risk fund and the Low-risk fund, which are the funds that your savings are allocated to without payout protection cover. This means that your pension payouts will usually be expected to be lower if you have linked payout protection cover to your plan. In some cases, the payouts will be significantly lower. Under current market conditions with the historically low interest rates, we even expect that there will be losses (negative return) on the part of your savings allocated to the long-duration funds.

Please note that the payout protection cover can in some cases lapse or be changed. You can read more about this in your terms and conditions of pension.

 
Find out whether you can select payout protection cover

 

Environmentally sustainable investments
The investments that this financial product is based on do not consider the EU criteria for environmentally sustainable economic activities. 

Categorisation under the EU’s Sustainable Finance Disclosure Regulation (SFDR) 
Payout protection cover does not promote environmental or social characteristics and does not have sustainability as its target pursuant to Section 6 of the EU’s Sustainable Finance Disclosure Regulation (SFDR).