Return calculation assumptions

The returns shown are calculated based on, among other things, the following assumptions. These assumptions will not always be met in practice but can be seen as an approximation.

  • The returns are based on closing prices or official net asset value for the assets that PFA has invested in. The returns are updated daily.
  • The returns do not take into account changing investment profiles, payments and payouts and other movements in the savings. The returns are less investment and transaction costs and are stated before pension yield tax.
  • If Individual CustomerCapital is included, it will be with a proportion of 5 % of the savings from the start of the period until 31 December 2023, 4.3 % in 2024, and 3.7 % in 2025. The proportion in CustomerCapital is calculated to represent an average customer across all plans in the market rate environment.
  • Customers without CustomerCapital are not included in the calculation of the average customer’s CustomerCapital. The proportion of CustomerCapital will be adjusted annually according to the above principles. The return from CustomerCapital is added daily with the historical or expected return for Individual CustomerCapital.
  • The allocation between High risk and Low risk funds starts the period with the allocations for the given profile and is rebalanced twice a year (30/6). The rebalancing also includes a rebalancing of CustomerCapital. For example, Profile Medium starts with 95 per cent in the High risk fund and 5 per cent in the Low risk fund with 30 years until retirement.
  • For return covering more than one year, it is calculated for the applicable period until retirement for all years – for example, the return for 15 years until retirement for Profile Medium for a five-year period is calculated with 15 years until retirement for all 15 years.
  • The individual investment profiles Low, Medium and High use a new gradual reduction model (introduced on 1 April 2025) until retirement. Returns before 1 April 2025 have been calculated based on the profiles that the new profiles have replaced and that were valid at that time. Gradual reduction continues after retirement. This means that the return after retirement also depends on how many years have passed since the first payout.
  • There is no payout protection cover.
 

Customer return and investment return

The difference between customer return and investment return is the contribution from CustomerCapital. This means that the investment return is the return that customers without CustomerCapital have received based on the above assumptions.

You can see the return that is added to your savings at My PFA.

Read more about PFA CustomerCapital

Why does the return at My PFA differ from what I can see at pfa.dk?

The return at pfa.dk is calculated based on a number of assumptions explained at the top of this page.

A number of factors can cause your return to be different, for example:

  • The returns page at pfa.dk only includes selected years until retirement. If your time until retirement is different from that for which we have stated returns, you may have a different allocation between the Low-risk fund and the High-risk fund than those represented by the calculated returns.
  • If you have not had your savings with PFA for the entire period used for the calculation of the returns at pfa.dk, your returns will not be the same as those stated at pfa.dk.
  • If regular payments and payouts are made or you have made large single payments or transfers during the period you are comparing returns with, your returns will not be the same as those stated at pfa.dk. The larger the payments, payouts and/or transfers, the greater the difference between your return and the return stated at My PFA. Similarly, payments for e.g. insurance deducted from the savings can make a difference.
  • The proportion you invest in Individual CustomerCapital may differ from the proportion used in the calculation of the return at pfa.dk. The return stated at pfa.dk assumes that the gradual reduction of risk until retirement age occurs at the end of the year and that the rebalancing back to this allocation between the Low risk fund and the High risk fund occurs on 30 June. In practice, the gradual reduction will take place on your birthday and the rebalancing will take place 6 months after your birthday. At the same time, your payments and payouts are used continuously for rebalancing purposes, whereas the calculations at pfa.dk are only rebalanced every six months. If you look at a return over a period longer than one year, a difference in return could also be explained by you having reduced your allocation to the High risk fund because you are closer to retirement. At PFA.dk, the allocation to the High risk fund is maintained throughout the calculation period.

 

Return during the period 1 April to 31 December 2025

On 1 April 2025, PFA introduced new investment profiles to replace the old investment profiles. The calculation of return at pfa.dk assumes that the new profiles are implemented precisely on 1 April 2025. 

In practice, the new profiles will be implemented by gradually increasing the proportion of equities and similar investments from 1 April to, expectedly, 31 December 2025. This means that your allocation between High risk funds and Low risk funds may differ from the allocation used to calculate return at pfa.dk. The gradual restructuring of investments is intended to mitigate the impact of any fluctuations in the financial markets as we transfer your savings. At My PFA, you can see whether your savings are being adjusted to the new profiles. You can find it under Your savings and then Investment overview.