Assumptions for returns
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. It is then 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.
It is assumed that Individual CustomerCapital accounts for 5 % of the pension savings in 2020. In 2020, the interest on Individual CustomerCapital is expected to be 8 % 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 % of the pension savings - rebalanced every six months.
The returns shown in the diagram do not allow for payout protection cover, switches between the investment profiles, payments, payouts and other activity on the savings plan. The returns are stated before pension yield tax, and the investment and trade expenses have been deducted.
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.
Unlike the customer returns, the investment returns do not include Individual CustomerCapital