Return in PFA

You obviously want your savings to grow and therefore your money is invested. PFA operates with different investment environments, and here you can get an overview of how the market rate returns have performed under the PFA Plus profiles, including PFA Climate Plus, You Invest (where you build your own portfolio), PFA Optional and Average interest rate.

Return – PFA Invests

With PFA Invests, you select an investment profile (A, B, C or D) that determines how your savings should be invested. The investment profile reflects the level of risk connected to the investment of your savings. Profile A has the lowest level of risk, and profile D the highest. Below, you can see the return on each profile illustrated with different time horizons until retirement.

 The illustrations below show two different rates of return:
  • Customer return: The return generated by the investments in the investment profile including the expected interest on Individual CustomerCapital.
  • Investment return: The return generated by the investments in the investment profile. Individual CustomerCapital is not included in the investment return.

The below figures are based on standard assumptions and will therefore deviate from the specific return that will be added to your plan as the return on your plan depends on your payments, payouts etc. You can see the return that will be added to your own savings at My PFA.

Choose between Customer return and Investment return. Also please choose PFA Plus or PFA Climate Plus.

Return – You Invest

Here you can see the return on the funds from which you can select in You Invest. Access more in-depth information by clicking on the individual fund.

You Invest – terms and conditions

In You Invest, you can select the PFA funds as shown in the table below. These may consist of individual securities, cash and/or underlying funds. An underlying fund may be managed by an external asset manager.

The value of PFA funds and underlying funds may differ
In cases, where PFA funds include underlying funds, these may be included when calculating the value of the PFA funds in My PFA with values other than the official net asset value of the underlying funds, which can be seen on other websites, including the external manager’s. This is due to the size of the cash portfolio and the time of valuation, amongst other things.

The value of PFA funds in My PFA and on the You Invest website may differ
In My PFA, you select PFA funds at prices set by PFA. Prices are based on trading price calculated by PFA on an ongoing basis. Trading price can only be seen in My PFA when the selection process is completed. Trading price may vary throughout the day and cannot be directly compared with the values of the PFA funds shown on the You Invest website. This is because the values on the website are not calculated using the same method as the trading price. Differences will be greater short-term and will not have a significant impact over a longer time horizon.

The index of comparison shown is not the benchmark of the underlying fund
The index of comparison shown is delivered by external data providers, cf. the text below, and represents the median return of funds placed in the same category as the given fund, by the data provider. The median return is calculated daily and does not represent the return of a specific fund.

Costs
A selected PFA fund may be subject to an emission fee on purchase and a redemption deduction on sale. If so, this will be shown in the estimate for the selected investment (the "receipt") that you approve in My PFA when making your selection. Emission fees and redemption deductions can be seen under "costs" in My PFA.

External data provider
Historical returns and other PFA fund data on the website are provided by an external data and analysis provider. The data is based on the official net asset values of relevant underlying funds, or on net asset values calculated by PFA. Therefore, the values and returns for PFA funds on the website cannot be directly compared to the values and returns that you see based on the PFA funds in My PFA.

Applicable terms
All terms can be found in the Terms and conditions of pension for PFA Plus. In the event a discrepancy is found in the information on the website and the pension terms, the latter applies.


 

Return – PFA Optional

The following shows the return percentages for the High-risk and Low-risk funds, which you can choose under PFA Optional.

The top part shows the year-to-date return for different percentage distributions between the High-risk and Low-risk funds. The return is updated on a monthly basis. Data updated on 30 November 2021.

The bottom part shows the historical return for the past five years for the High-risk and Low-risk funds.
Learn more about PFA Optional

Year-to-date return on the High-risk and Low-risk funds at the end of November 2021
 

High risk fund Low risk fund
16.70 % 0.40 %
HIGH RISK FUND share LOW RISK FUND share Return
100 % 0 % 16.70 %
90 % 10 % 15.07 %
80 % 20 % 13.44 %
70 % 30 % 11.81 %
60 % 40 % 10.18 %
50 % 50 % 8.55 %
40 % 60 % 6.92 %
30 % 70 % 5.29 %
20 % 80 % 3.66 %
10% 90 % 2.03 %
0 % 100 % 0.40 %
 

High-risk fund share/Low-risk fund share



Historical return on the High-risk and Low-risk funds

Year Return high risk fund Return low risk fund
 2020 6.73 %  0.84 % 
2019 19.62 % 4.88 %
2018 -6.54 % 0.50 %
2017 13.42 % 3.76 %
2016 7.56 % 5.60 %
2015 11.89 % 3.63 %
 

Year

Return – Average Interest Rate

With PFA Traditional, your pension savings are placed in the average interest rate environment where your savings accrue a stable deposit interest rate, and you are guaranteed a minimum payout (guaranteed benefits) when you retire. The risk is small, and the chance of achieving a high return is limited.
Learn more about Average interest rate.

The deposit interest rate over the last 10 years

As at 1 January 2021, the deposit interest rate amounts to 2.0 % of the average interest rate deposit, while the annual interest on Individual CustomerCapital is expected to be 8.0 % in 2021.

Thus, the total annual deposit interest rate for 2021 on your savings including Individual CustomerCapital is expected to amount to 2.3 % before tax provided that CustomerCapital accounts for 5 % of the savings.

The stated expected interest on CustomerCapital for 2021 is not guaranteed and will be added in the spring of 2022 for customers who still have their pension plan when the interest is added. Please note that the deposit interest rate applies until further notice but may be subject to monthly changes.
Read more about CustomerCapital

Deposit interest rate in per cent before pension yield tax

Returns – average interest rate 2021  2020 2019 2018 2017 2016 2015 2014 2013 2012
Deposit interest rate before tax  2.00 2.00 2.00 2.00 1.50 1.50 2.00 2.00 2.00 2.40
Deposit interest rate before tax including interest on 5 % CustomerCapital  2.30

2.30

2.30 2.40 2.23 2.43 2.90 2.90 2.90 3.25