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.

Four investment profiles - have you got the one that is 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 has the lowest risk and the least potential for generating a high return. Profile D has the best potential for generating a high return, but also has the highest risk.

All investment profiles are invested in shares, bonds, real estate and alternative investments in the two investment funds: The Low-risk fund and the High-risk fund.

Log on to My PFA to see which investment profile you have. Your options depend on the agreement that your employer or organisation has with PFA. At My PFA, you can see what options you have, and you can use 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 are gradually reduced to approximately 10 % once you retire.

The composition of the investments in profile A can be compared to a traditional savings plan in the average interest rate environment.

With profile A, you can also add payout protection cover. We do not recommend this option however.

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 are gradually reduced to approximately 20 % once you retire.

With profile B, you can also add payout protection cover. We do not recommend this option however.

Investment profile C

75 % of your 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 are gradually reduced to approximately 30 % once you retire.

Investment profile D

100 % of your savings will be invested in the High-risk fund.

The investments in the High-risk fund are gradually reduced to approximately 40 % once you retire.


Make your pension even more climate-friendly with PFA Climate Plus

PFA Climate Plus enables you to invest your pension savings in particularly climate-friendly investments. From the outset, shares in PFA Climate Plus will emit 60 % less CO2 than the World Equity Index. The goal is for PFA Climate Plus investments to be carbon-neutral in 2025 and remove more CO2 from the air than they emit already by 2030. As with the rest of PFA’s investments, in PFA Climate Plus, they are also selected based on respect for social conditions and corporate governance – collectively referred to as ESG.

Integrated gradual reduction of risk in all profiles

The greater the potential for generating returns, the greater the potential for incurring losses will be as well.
 
The closer you are to reaching your retirement age, the harder it becomes to make up for any potential losses. Therefore, the investments with the highest risk will be gradually reduced as you get closer to the retirement age - in other words, the closer you are to retirement, the more careful we are about reducing risk in your investments.
The relationship between risk and return
The return on investments vary from year to year, and both shares and bonds can generate a negative return. There is often a correlation between risk and return. The higher risk you are willing to take, the greater your potential for generating a high return will be. Typically, shares generate a higher return than bonds. However, shares are also the most volatile, and therefore the risk is higher.
 
Risk reduction 

PFA recommends investment profile C

When it comes to risk appetite, everyone has their own preferences. The selection of an investment profile has an impact on your pension savings and thus your future, and therefore the relationship between risk and return should also be what is right for you.

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

That said, we are always aware that the selection of an investment profile is a matter of personal temperament and that it also depends on the state of your finances. Therefore, investment profiles A and B may be what are right for those of you who have less risk tolerance - and investment profile D would be for those of you who want to invest your savings hoping for a higher return. Even if this comes with a higher risk of incurring losses.

In all the profiles, the long-term return will typically be higher than traditional pension savings in the average interest rate environment. The advantage of the profiles is that we have more freedom when it comes to investing – which is for your benefit. After all, having more freedom to invest means the potential to generate better returns.

Get a recommendation immediately

A, B, C or D? Which profile is the right one for you? You can quickly get an impression of this by answering a few questions at My PFA about your expectations for return and your risk appetite. All you need to do is log on to My PFA and find the guide under Investments.