Assumptions for returns

The illustrated rates of return are calculated based on the following assumptions:

  • If Individual CustomerCapital is included in the calculation, it is included with a share of 5 % of the savings from the beginning of the period until 31.12.2023, with 4.3 % in 2024, and with 3.7 % in 2025 and onwards. The share of CustomerCapital is calculated based on representing an average customer across all policies in the market rate product. Customers without CustomerCapital are excluded from the calculation. The share will be adjusted continuously. The savings are rebalanced every six months (30 June) and is included with the historical or expected interest on Individual CustomerCapital. Please note that the interest on Individual CustomerCapital will not be added until in the spring of the following year, and only if the plan is still in force
  • The distribution between the High-risk and Low-risk funds matches the distribution of the selected profile at the beginning of the period and is then rebalanced every six months (30 June). For instance, investment profile C starts with 75 % in the High-risk fund and 25 % in the Low-risk fund
  • Any payments or payouts to/from the pension plan during the period will not be taken into account
  • The individual investment profiles A-D are using a new gradual reduction model (as of 2018) as retirement approaches
  • Payout protection cover is not included.

 

Customer Return & Investment Return

The returns are based on the official equity value of the funds in which PFA has invested. The returns are updated on a daily basis.

The returns shown in the diagram do not allow for payout protection cover, payments, payouts or switches between the investment profiles. The returns are stated before pension yield tax, and the investment and trade expenses have been deducted.


Customer Return

It is assumed that Individual CustomerCapital accounts for 3,7 % of the pension savings in 2025. For 2025, the interest on Individual CustomerCapital is expected to be 10 % before pension yield tax. PFA Pension fixes part of the interest on Individual CustomerCapital and is therefore also entitled to change the interest. Please note that the interest on Individual CustomerCapital will not be added until in the spring of the following year, and only if the plan is still in force.

The accumulated returns are based on an Individual CustomerCapital share of 5 % in the period up to 31.12.2023 and 4.3 % in 2024 and 3.7 % in 2025 of the pension savings, and the pension savings are rebalanced every six months.

 

PFA CustomerCapital – profit and risk sharing

PFA has a unique model for sharing profit and risk that differs from that of other commercial pension companies as it enables us to return profit to our customers. We call this PFA CustomerCapital. CustomerCapital is capital base in PFA Pension and will receive a part of any profit, but will also take part in covering any losses. It gives you as a customer the possibility of obtaining an extra high interest on the part of your savings that is paid to Individual CustomerCapital. However, Individual CustomerCapital is also associated with risk, which means that it may be reduced (negative interest) or, in the last resort, be completely exhausted. Accumulated Individual CustomerCapital cannot be converted into regular pension savings.

Read more about PFA CustomerCapital

 

Investment Return

Unlike the customer returns, the investment returns do not include Individual CustomerCapital