Risk labelling

Risk labelling related to your pension savings

In order to make it easier for you to understand and compare the risk on your pension savings, all pension products in the market rate environment are “labelled” with a risk value between 1.0 and 5.9:

  • Risk values between 5.0 and 5.9 are the highest. Here, your savings may fluctuate significantly from one year to the next.
  • Risk values between 1.0 and 1.9 represent the lowest risk. Here, fluctuations will generally be less pronounced.

 

The risk value is calculated for all market rate products in PFA Plus and PFA Climate Plus including the investment profiles (A, B, C and D) and PFA Optional.

Below, you can see the risk values of the various market rate products with and without CustomerCapital.

PFA Plus, PFA Climate Plus and PFA Optional have last been updated Jan. 1, 2021.

Risk labelling of PFA Plus, investment profiles A, B, C and D
   

Risk labelling of investment profiles A, B, C and D with CustomerCapital

In the investment profiles in PFA Plus, the risk is gradually reduced as retirement approaches. This is illustrated in the figure and table, which show the risk value of the four profiles depending on the number of years until retirement. In terms of risk, CustomerCapital is placed with 5 % in Global Equity. Read more about CustomerCapital and see your exact share of CustomerCapital at My PFA.

Updated Jan. 1, 2021.

  • Risk values between 5.0 and 5.9 represent the highest risk. Here, your savings may fluctuate significantly from one year to the next.
  • Risk values between 1.0 and 1.9 represent the lowest risk. Here, fluctuations will generally be less pronounced.

    • Once you have found the risk value, you can see here how much the savings may fluctuate throughout a year (link to Insurance & Pension Denmark's website, in Danish only).

    Please find the method description at Insurance & Pension Denmark's website (in Danish only)
    Profile risk classification

    Based on Insurance & Pension Denmark’s risk bands, the profiles are risk classified with these classifications:
    Profile A: Low risk
    Profile B: Low risk
    Profile C: Medium risk
    Profile D: High risk

    Deviations from Insurance & Pension Denmark’s (IPD) risk classification 

    PFA’s profiles deviate from their risk classification at the following times:

    ● PFA Plus Profile B: The risk value is 0,1-0,3 above IPD’s risk classification for low risk at: 21 to 12 years until retirement plus 2 to 5 years after retirement, where it is classified as medium risk according to IPD.

    ● PFA Plus Profile C: The risk value is 0,1-0,4 above IPD’s risk classification for medium risk at: 25 to 12 years until retirement plus 2 to 5 years after retirement, where it is classified as high risk according to IPD.

    ● PFA Plus Profile A and Profile D with CustomerCapital are not deviating from their risk classification.

    Short-term and long-term risk

    Pension savings entail two types of risk. The short-term risk illustrates how much the value of your savings may fluctuate during the next year. And the long-term risk illustrates the level of uncertainty related to your future payouts when you retire.

    The risk value is only an expression of the short-term risk – i.e. how much the value of your savings may fluctuate during the next year.

    The risk depends on your age

    When the risk is high, the return expectations are also high. Therefore, most pension plans entail a high risk while the customer is young. While the customer is young, there is time to regain any losses sustained during years with negative developments on the financial markets.

    When the customer gets older, there is less time to regain any losses sustained. Thus, most pension plans gradually reduce the risk as the customer gets older.


    Risk labelling of investment profiles A, B, C and D without CustomerCapital

    In the investment profiles in PFA Plus, the risk is gradually reduced as retirement approaches. This is illustrated in the figure and table, which shows the risk value of the four profiles depending on years until retirement.

    Updated Jan. 1, 2021.

  • Risk values between 5.0 and 5.9 represent the highest risk. Here, your savings may fluctuate significantly from one year to the next.
  • Risk values between 1.0 and 1.9 represent the lowest risk. Here, fluctuations will generally be less pronounced.

    • Once you have found the risk value, you can see here how much the savings may fluctuate throughout a year (link to Insurance & Pension Denmark's website, in Danish only).

    Please find the method description at Insurance & Pension Denmark's website (in Danish only)
    Profile risk classification

    Based on Insurance & Pension Denmark's risk bands, the profiles are risk classified with these classifications:
    Profile A: Low risk
    Profile B: Low risk
    Profile C: Medium risk
    Profile D: High risk 

    Deviations from Insurance & Pension Denmark’s (IPD) risk classification 

    PFA’s profiles deviate from their risk classification at the following times:

    ● PFA Plus Profile B: The risk value is 0,1-0,2 above IPD’s risk classification for low risk at: 17 to 12 years until retirement plus 4 to 5 years after retirement, where it is classified as medium risk according to IPD.

    ● PFA Plus Profile C: The risk value is 0,1-0,4 above IPD’s risk classification for medium risk at: 25 to 12 years until retirement, where it is classified as high risk according to IPD.

    ● PFA Plus Profile A and Profile D without CustomerCapital are not deviating from their risk classification.

    Short-term and long-term risk

    Pension savings entail two types of risk. The short-term risk illustrates how much the value of your savings may fluctuate during the next year. And the long-term risk illustrates the level of uncertainty related to your future payouts when you retire.

    The risk value is only an expression of the short-term risk – i.e. how much the value of your savings may fluctuate during the next year.

    The risk depends on your age

    When the risk is high, the return expectations are also high. Therefore, most pension plans entail a high risk while the customer is young. While the customer is young, there is time to regain any losses sustained during years with negative developments on the financial markets.

    When the customer gets older, there is less time to regain any losses sustained. Thus, most pension plans gradually reduce the risk as the customer gets older.

    Risk labelling of PFA Climate Plus, investment profiles A, B, C and D

    Risk labelling of investment profiles A, B, C and D with CustomerCapital

    In the investment profiles in PFA Climate Plus, the risk is gradually reduced as retirement approaches. This is illustrated in the figure and table, which show the risk value of the four profiles depending on the number of years until retirement. In terms of risk, CustomerCapital is placed with 5 % in Global Equity. Read more about CustomerCapital and see your exact share of CustomerCapital at My PFA.

    Updated Jan. 1, 2021.

  • Risk values between 5.0 and 5.9 represent the highest risk. Here, your savings may fluctuate significantly from one year to the next.
  • Risk values between 1.0 and 1.9 represent the lowest risk. Here, fluctuations will generally be less pronounced.

    • Once you have found the risk value, you can see here how much the savings may fluctuate throughout a year (link to Insurance & Pension Denmark's website, in Danish only).

    Please find the method description at Insurance & Pension Denmark's website (in Danish only)
    Profile risk classification

    Based on Insurance & Pension Denmark’s risk bands, the profiles are risk classified with these classifications:
    Profile A: Low risk
    Profile B: Low risk
    Profile C: Medium risk
    Profile D: High risk

    Deviations from Insurance & Pension Denmark’s (IPD) risk classification

    PFA’s profiles deviate from their risk classification at the following times:

    ● PFA Plus Profile B: The risk value is 0,1-0,2 above IPD’s risk classification for low risk at: 17 to 13 years until retirement plus 4 to 5 years after retirement, where it is classified as medium risk according to IPD.

    ● PFA Plus Profile C: The risk value is 0,1-0,3 above IPD’s risk classification for medium risk at: 20 to 13 years until retirement plus 2 to 5 years after retirement, where it is classified as high risk according to IPD.

    ● PFA Plus Profile A and Profile D with CustomerCapital are not deviating from their risk classification. 

    Short-term and long-term risk

    Pension savings entail two types of risk. The short-term risk illustrates how much the value of your savings may fluctuate during the next year. And the long-term risk illustrates the level of uncertainty related to your future payouts when you retire.

    The risk value is only an expression of the short-term risk – i.e. how much the value of your savings may fluctuate during the next year.

    The risk depends on your age

    When the risk is high, the return expectations are also high. Therefore, most pension plans entail a high risk while the customer is young. While the customer is young, there is time to regain any losses sustained during years with negative developments on the financial markets.

    When the customer gets older, there is less time to regain any losses sustained. Thus, most pension plans gradually reduce the risk as the customer gets older.


    Risk labelling of investment profiles A, B, C and D without CustomerCapital

    In the investment profiles in Climate PFA Plus, the risk is gradually reduced as retirement approaches. This is illustrated in the figure and table, which shows the risk value of the four profiles depending on years until retirement.

    Updated Jan. 1, 2021.

  • Risk values between 5.0 and 5.9 represent the highest risk. Here, your savings may fluctuate significantly from one year to the next.
  • Risk values between 1.0 and 1.9 represent the lowest risk. Here, fluctuations will generally be less pronounced.

    • Once you have found the risk value, you can see here how much the savings may fluctuate throughout a year (link to Insurance & Pension Denmark's website, in Danish only).

    Please find the method description at Insurance & Pension Denmark's website (in Danish only)
    Profile risk classification

    Based on Insurance & Pension Denmark's risk bands, the profiles are risk classified with these classifications:
    Profile A: Low risk
    Profile B: Low risk
    Profile C: Medium risk
    Profile D: High risk 

    Deviations from Insurance & Pension Denmark’s (IPD) risk classification

    PFA’s profiles deviate from their risk classification at the following times:

    ● PFA Plus Profile B: The risk value is 0,1 above IPD’s risk classification for low risk at: 14 and 13 years until retirement, where it is classified as medium risk according to IPD.

    ● PFA Plus Profile C: The risk value is 0,1-0,3 above IPD’s risk classification for medium risk at: 20 to 13 years until retirement, where it is classified as high risk according to IPD.

    ● PFA Plus Profile D: The risk value is 0,1 below IPD’s risk classification for high risk at: 3 to 1 years until retirement, where it is classified as medium risk according to IPD.

    ● PFA Plus Profile A without CustomerCapital is not deviating from the risk classification.

    Short-term and long-term risk

    Pension savings entail two types of risk. The short-term risk illustrates how much the value of your savings may fluctuate during the next year. And the long-term risk illustrates the level of uncertainty related to your future payouts when you retire.

    The risk value is only an expression of the short-term risk – i.e. how much the value of your savings may fluctuate during the next year.

    The risk depends on your age

    When the risk is high, the return expectations are also high. Therefore, most pension plans entail a high risk while the customer is young. While the customer is young, there is time to regain any losses sustained during years with negative developments on the financial markets.

    When the customer gets older, there is less time to regain any losses sustained. Thus, most pension plans gradually reduce the risk as the customer gets older.

    Risik labelling for the combination of PFA Plus and PFA Climate Plus with and without Customer Capital
      

    Risik labelling for the combination of PFA Plus and PFA Climate Plus with Customer Capital

    The tables below show risk values for combinations of PFA Plus and PFA Climate Plus. The figures are calculated at 5% intervals from 0% to 100% in PFA Klima Plus.

    Profile A with Customer Capital
    Share in PFA Climate Plus/Years until retirement 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0
    0% 2.1 2.1 2.1 2.1 2.1 2.1 2.0 1.9 1.8 1.7 1.6 1.6 1.5 1.5 1.4 1.4
    5% 2.1 2.1 2.1 2.1 2.1 2.1 2.0 1.9 1.8 1.7 1.6 1.5 1.5 1.4 1.4 1.4
    10% 2.1 2.1 2.1 2.1 2.1 2.1 2.0 1.9 1.8 1.7 1.6 1.5 1.5 1.4 1.4 1.4
    15% 2.1 2.1 2.1 2.1 2.1 2.1 1.9 1.8 1.8 1.7 1.6 1.5 1.5 1.4 1.4 1.4
    20% 2.1 2.1 2.1 2.1 2.1 2.1 1.9 1.8 1.8 1.7 1.6 1.5 1.5 1.4 1.4 1.4
    25% 2.1 2.1 2.1 2.1 2.1 2.1 1.9 1.8 1.7 1.7 1.6 1.5 1.5 1.4 1.4 1.4
    30% 2.1 2.1 2.1 2.1 2.1 2.1 1.9 1.8 1.7 1.7 1.6 1.5 1.5 1.4 1.4 1.4
    35% 2.0 2.0 2.0 2.0 2.0 2.0 1.9 1.8 1.7 1.7 1.6 1.5 1.5 1.4 1.4 1.4
    40% 2.0 2.0 2.0 2.0 2.0 2.0 1.9 1.8 1.7 1.6 1.6 1.5 1.5 1.4 1.4 1.4
    45% 2.0 2.0 2.0 2.0 2.0 2.0 1.9 1.8 1.7 1.6 1.6 1.5 1.5 1.4 1.4 1.4
    50% 2.0 2.0 2.0 2.0 2.0 2.0 1.9 1.8 1.7 1.6 1.6 1.5 1.5 1.4 1.4 1.3
    55% 2.0 2.0 2.0 2.0 2.0 2.0 1.9 1.8 1.7 1.6 1.6 1.5 1.4 1.4 1.4 1.3
    60% 2.0 2.0 2.0 2.0 2.0 2.0 1.9 1.8 1.7 1.6 1.6 1.5 1.4 1.4 1.3 1.3
    65% 2.0 2.0 2.0 2.0 2.0 2.0 1.9 1.8 1.7 1.6 1.6 1.5 1.4 1.4 1.3 1.3
    70% 2.0 2.0 2.0 2.0 2.0 2.0 1.9 1.8 1.7 1.6 1.5 1.5 1.4 1.4 1.3 1.3
    75% 2.0 2.0 2.0 2.0 2.0 2.0 1.9 1.8 1.7 1.6 1.5 1.5 1.4 1.4 1.3 1.3
    80% 2.0 2.0 2.0 2.0 2.0 2.0 1.9 1.8 1.7 1.6 1.5 1.5 1.4 1.4 1.3 1.3
    85% 2.0 2.0 2.0 2.0 2.0 2.0 1.9 1.8 1.7 1.6 1.5 1.5 1.4 1.4 1.3 1.3
    90% 2.0 2.0 2.0 2.0 2.0 2.0 1.9 1.8 1.7 1.6 1.5 1.5 1.4 1.4 1.3 1.3
    95% 2.0 2.0 2.0 2.0 2.0 2.0 1.9 1.8 1.7 1.6 1.5 1.5 1.4 1.4 1.3 1.3
    100% 2.0 2.0 2.0 2.0 2.0 2.0 1.9 1.8 1.7 1.6 1.5 1.5 1.4 1.4 1.3 1.3
    Profile B with Customer Capital
    Share in PFA Climate Plus/Years until retirement 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0
    0% 3.4 3.4 3.4 3.1 2.9 2.8 2.6 2.5 2.3 2.2 2.1 2.0 2.0 1.9 1.8 1.8
    5% 3.4 3.4 3.4 3.1 2.9 2.8 2.6 2.5 2.3 2.2 2.1 2.0 2.0 1.9 1.8 1.8
    10% 3.4 3.4 3.4 3.1 2.9 2.8 2.6 2.5 2.3 2.2 2.1 2.0 1.9 1.9 1.8 1.8
    15% 3.4 3.4 3.4 3.1 2.9 2.8 2.6 2.5 2.3 2.2 2.1 2.0 1.9 1.9 1.8 1.8
    20% 3.3 3.3 3.3 3.1 2.9 2.8 2.6 2.5 2.3 2.2 2.1 2.0 1.9 1.9 1.8 1.8
    25% 3.3 3.3 3.3 3.1 2.9 2.7 2.6 2.5 2.3 2.2 2.1 2.0 1.9 1.9 1.8 1.8
    30% 3.3 3.3 3.3 3.1 2.9 2.7 2.6 2.4 2.3 2.2 2.1 2.0 1.9 1.8 1.8 1.8
    35% 3.3 3.3 3.3 3.1 2.9 2.7 2.6 2.4 2.3 2.2 2.1 2.0 1.9 1.8 1.8 1.8
    40% 3.3 3.3 3.3 3.1 2.9 2.7 2.6 2.4 2.3 2.2 2.1 2.0 1.9 1.8 1.8 1.8
    45% 3.3 3.3 3.3 3.1 2.9 2.7 2.6 2.4 2.3 2.2 2.1 2.0 1.9 1.8 1.8 1.8
    50% 3.3 3.3 3.3 3.1 2.9 2.7 2.6 2.4 2.3 2.2 2.1 2.0 1.9 1.8 1.8 1.8
    55% 3.3 3.3 3.3 3.1 2.9 2.7 2.6 2.4 2.3 2.2 2.1 2.0 1.9 1.8 1.8 1.8
    60% 3.3 3.3 3.3 3.1 2.9 2.7 2.6 2.4 2.3 2.2 2.1 2.0 1.9 1.8 1.8 1.8
    65% 3.3 3.3 3.3 3.1 2.9 2.7 2.5 2.4 2.3 2.2 2.1 2.0 1.9 1.8 1.8 1.8
    70% 3.3 3.3 3.3 3.1 2.9 2.7 2.5 2.4 2.3 2.2 2.1 2.0 1.9 1.8 1.8 1.8
    75% 3.3 3.3 3.3 3.1 2.9 2.7 2.5 2.4 2.3 2.2 2.1 2.0 1.9 1.8 1.8 1.8
    80% 3.3 3.3 3.3 3.1 2.9 2.7 2.5 2.4 2.3 2.2 2.1 2.0 1.9 1.8 1.8 1.8
    85% 3.3 3.3 3.3 3.1 2.9 2.7 2.5 2.4 2.3 2.1 2.0 2.0 1.9 1.8 1.8 1.8
    90% 3.3 3.3 3.3 3.1 2.9 2.7 2.5 2.4 2.3 2.1 2.0 1.9 1.9 1.8 1.8 1.7
    95% 3.3 3.3 3.3 3.1 2.9 2.7 2.5 2.4 2.3 2.1 2.0 1.9 1.9 1.8 1.7 1.7
    100% 3.3 3.3 3.3 3.0 2.9 2.7 2.5 2.4 2.2 2.1 2.0 1.9 1.9 1.8 1.7 1.7
    Profile C with Customer Capital
    Share in PFA Climate Plus/Years until retirement 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0
    0% 4.7 4.7 4.4 4.1 3.9 3.6 3.4 3.2 3.1 2.9 2.8 2.6 2.5 2.4 2.3 2.3
    5% 4.7 4.7 4.4 4.1 3.8 3.6 3.4 3.2 3.0 2.9 2.8 2.6 2.5 2.4 2.3 2.3
    10% 4.7 4.7 4.4 4.1 3.8 3.6 3.4 3.2 3.0 2.9 2.7 2.6 2.5 2.4 2.3 2.3
    15% 4.7 4.7 4.4 4.1 3.8 3.6 3.4 3.2 3.0 2.9 2.7 2.6 2.5 2.4 2.3 2.3
    20% 4.7 4.7 4.4 4.1 3.8 3.6 3.4 3.2 3.0 2.9 2.7 2.6 2.5 2.4 2.3 2.3
    25% 4.7 4.7 4.4 4.1 3.8 3.6 3.4 3.2 3.0 2.9 2.7 2.6 2.5 2.4 2.3 2.3
    30% 4.7 4.7 4.4 4.1 3.8 3.6 3.4 3.2 3.0 2.9 2.7 2.6 2.5 2.4 2.3 2.3
    35% 4.7 4.7 4.4 4.1 3.8 3.6 3.4 3.2 3.0 2.9 2.7 2.6 2.5 2.4 2.3 2.3
    40% 4.7 4.7 4.4 4.1 3.8 3.6 3.4 3.2 3.0 2.9 2.7 2.6 2.5 2.4 2.3 2.3
    45% 4.7 4.7 4.4 4.1 3.8 3.6 3.4 3.2 3.0 2.9 2.7 2.6 2.5 2.4 2.3 2.3
    50% 4.7 4.7 4.4 4.1 3.8 3.6 3.4 3.2 3.0 2.8 2.7 2.6 2.5 2.4 2.3 2.3
    55% 4.7 4.7 4.3 4.1 3.8 3.6 3.4 3.2 3.0 2.8 2.7 2.6 2.5 2.4 2.3 2.3
    60% 4.7 4.7 4.3 4.1 3.8 3.6 3.4 3.2 3.0 2.8 2.7 2.6 2.5 2.3 2.3 2.3
    65% 4.7 4.7 4.3 4.1 3.8 3.6 3.3 3.2 3.0 2.8 2.7 2.6 2.4 2.3 2.3 2.3
    70% 4.7 4.7 4.3 4.0 3.8 3.6 3.3 3.2 3.0 2.8 2.7 2.6 2.4 2.3 2.3 2.3
    75% 4.7 4.7 4.3 4.0 3.8 3.6 3.3 3.1 3.0 2.8 2.7 2.6 2.4 2.3 2.3 2.3
    80% 4.7 4.7 4.3 4.0 3.8 3.5 3.3 3.1 3.0 2.8 2.7 2.5 2.4 2.3 2.3 2.2
    85% 4.6 4.6 4.3 4.0 3.8 3.5 3.3 3.1 3.0 2.8 2.7 2.5 2.4 2.3 2.3 2.2
    90% 4.6 4.6 4.3 4.0 3.8 3.5 3.3 3.1 3.0 2.8 2.7 2.5 2.4 2.3 2.3 2.2
    95% 4.6 4.6 4.3 4.0 3.8 3.5 3.3 3.1 3.0 2.8 2.7 2.5 2.4 2.3 2.2 2.2
    100% 4.6 4.6 4.3 4.0 3.8 3.5 3.3 3.1 3.0 2.8 2.7 2.5 2.4 2.3 2.2 2.2
    Profile D with Customer Capital
    Share in PFA Climate Plus/Years until retirement 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0
    0% 5.9 5.7 5.3 4.9 4.6 4.4 4.1 3.9 3.7 3.5 3.3 3.2 3.0 2.9 2.8 2.8
    5% 5.9 5.7 5.3 4.9 4.6 4.4 4.1 3.9 3.7 3.5 3.3 3.2 3.0 2.9 2.8 2.8
    10% 5.9 5.7 5.3 4.9 4.6 4.4 4.1 3.9 3.7 3.5 3.3 3.2 3.0 2.9 2.8 2.8
    15% 5.9 5.7 5.3 4.9 4.6 4.3 4.1 3.9 3.7 3.5 3.3 3.2 3.0 2.9 2.8 2.8
    20% 5.9 5.6 5.3 4.9 4.6 4.3 4.1 3.9 3.7 3.5 3.3 3.2 3.0 2.9 2.8 2.8
    25% 5.9 5.6 5.3 4.9 4.6 4.3 4.1 3.9 3.7 3.5 3.3 3.2 3.0 2.9 2.8 2.8
    30% 5.9 5.6 5.3 4.9 4.6 4.3 4.1 3.9 3.7 3.5 3.3 3.1 3.0 2.9 2.8 2.8
    35% 5.9 5.6 5.3 4.9 4.6 4.3 4.1 3.9 3.6 3.5 3.3 3.1 3.0 2.9 2.8 2.8
    40% 5.9 5.6 5.3 4.9 4.6 4.3 4.1 3.9 3.6 3.5 3.3 3.1 3.0 2.9 2.8 2.8
    45% 5.9 5.6 5.2 4.9 4.6 4.3 4.1 3.8 3.6 3.5 3.3 3.1 3.0 2.9 2.8 2.8
    50% 5.9 5.6 5.2 4.9 4.6 4.3 4.1 3.8 3.6 3.5 3.3 3.1 3.0 2.9 2.8 2.8
    55% 5.9 5.6 5.2 4.9 4.6 4.3 4.1 3.8 3.6 3.4 3.3 3.1 3.0 2.8 2.8 2.8
    60% 5.9 5.6 5.2 4.9 4.6 4.3 4.1 3.8 3.6 3.4 3.3 3.1 3.0 2.8 2.8 2.8
    65% 5.9 5.6 5.2 4.9 4.6 4.3 4.1 3.8 3.6 3.4 3.3 3.1 3.0 2.8 2.8 2.8
    70% 5.9 5.6 5.2 4.9 4.6 4.3 4.1 3.8 3.6 3.4 3.3 3.1 3.0 2.8 2.8 2.8
    75% 5.9 5.6 5.2 4.9 4.6 4.3 4.0 3.8 3.6 3.4 3.3 3.1 3.0 2.8 2.8 2.8
    80% 5.9 5.6 5.2 4.9 4.6 4.3 4.0 3.8 3.6 3.4 3.3 3.1 3.0 2.8 2.8 2.8
    85% 5.9 5.6 5.2 4.9 4.6 4.3 4.0 3.8 3.6 3.4 3.2 3.1 2.9 2.8 2.8 2.8
    90% 5.9 5.6 5.2 4.9 4.6 4.3 4.0 3.8 3.6 3.4 3.2 3.1 2.9 2.8 2.8 2.8
    95% 5.9 5.6 5.2 4.9 4.6 4.3 4.0 3.8 3.6 3.4 3.2 3.1 2.9 2.8 2.8 2.7
    100% 5.9 5.6 5.2 4.9 4.6 4.3 4.0 3.8 3.6 3.4 3.2 3.1 2.9 2.8 2.7 2.7

    Updated Jan. 1, 2021.

  • Risk values between 5.0 and 5.9 represent the highest risk. Here, your savings may fluctuate significantly from one year to the next.
  • Risk values between 1.0 and 1.9 represent the lowest risk. Here, fluctuations will generally be less pronounced.

    • Once you have found the risk value, you can see here how much the savings may fluctuate throughout a year (link to Insurance & Pension Denmark's website, in Danish only).

    Please find the method description at Insurance & Pension Denmark's website (in Danish only)
    Profile risk classification

    Based on Insurance & Pension Denmark's risk bands, the profiles are risk classified with these classifications:
    Profile A: Low risk
    Profile B: Low risk
    Profile C: Medium risk
    Profile D: High risk 

    Deviations from Insurance & Pension Denmark’s (IPD) risk classification 

    PFA’s profiles deviate from their risk classification at the following times:

    ● Profile B deviates from IPD’s risk classification for low risk at the following times and for the following shares in PFA Climate Plus. In the event of the deviations, it is classified as medium risk according to IPD.

    The risk value deviates 0,1 at 21 to 18 years until retirement with 0-15% in PFA Climate Plus.
    The risk value deviates 0,1-0,3 at 17 to 13 years until retirement with 0-100% in PFA Climate Plus.
    The risk value deviates 0,1 at 12 years until retirement with 0-95% in PFA Climate Plus.
    The risk value deviates 0,1 at 2 to 3 years after retirement with 0-85% in PFA Climate Plus.
    The risk value deviates 0,1-0,2 at 4 to 5 years after retirement with 0-100% in PFA Climate Plus.

    ● Profile C deviates from IPD’s risk classification for medium risk at the following times and for the following shares in PFA Climate Plus. In the event of the deviations, it is classified as high risk according to IPD.

    The risk value deviates 0,1 at 25 to 21 years until retirement with 0-80% in PFA Climate Plus.
    The risk value deviates 0,1-0,4 at 20 to 13 years until retirement with 0-100% in PFA Climate Plus.
    The risk value deviates 0,1 at 12 years until retirement with 0-65% in PFA Climate Plus.

    ● PFA Plus Profile A and Profile D with CustomerCapital are not deviating from their risk classification.

    Short-term and long-term risk

    Pension savings entail two types of risk. The short-term risk illustrates how much the value of your savings may fluctuate during the next year. And the long-term risk illustrates the level of uncertainty related to your future payouts when you retire.

    The risk value is only an expression of the short-term risk – i.e. how much the value of your savings may fluctuate during the next year.

    The risk depends on your age

    When the risk is high, the return expectations are also high. Therefore, most pension plans entail a high risk while the customer is young. While the customer is young, there is time to regain any losses sustained during years with negative developments on the financial markets.

    When the customer gets older, there is less time to regain any losses sustained. Thus, most pension plans gradually reduce the risk as the customer gets older.


    Risik labelling for the combination of PFA Plus and PFA Climate Plus without Customer Capital

    The tables below show risk values for combinations of PFA Plus and PFA Climate Plus. The figures are calculated at 5% intervals from 0% to 100% in PFA Klima Plus.

    Profile A without Customer Capital
    Share in PFA Climate Plus/Years until retirement 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0
    0% 1.9 1.9 1.9 1.9 1.9 1.9 1.8 1.7 1.6 1.6 1.5 1.4 1.4 1.3 1.3 1.3
    5% 1.9 1.9 1.9 1.9 1.9 1.9 1.8 1.7 1.6 1.5 1.5 1.4 1.4 1.3 1.3 1.3
    10% 1.9 1.9 1.9 1.9 1.9 1.9 1.8 1.7 1.6 1.5 1.5 1.4 1.4 1.3 1.3 1.3
    15% 1.9 1.9 1.9 1.9 1.9 1.9 1.8 1.7 1.6 1.5 1.5 1.4 1.3 1.3 1.3 1.2
    20% 1.9 1.9 1.9 1.9 1.9 1.9 1.8 1.7 1.6 1.5 1.5 1.4 1.3 1.3 1.3 1.2
    25% 1.9 1.9 1.9 1.9 1.9 1.9 1.8 1.7 1.6 1.5 1.5 1.4 1.3 1.3 1.2 1.2
    30% 1.9 1.9 1.9 1.9 1.9 1.9 1.8 1.7 1.6 1.5 1.4 1.4 1.3 1.3 1.2 1.2
    35% 1.9 1.9 1.9 1.9 1.9 1.9 1.8 1.7 1.6 1.5 1.4 1.4 1.3 1.3 1.2 1.2
    40% 1.9 1.9 1.9 1.9 1.9 1.9 1.8 1.7 1.6 1.5 1.4 1.4 1.3 1.3 1.2 1.2
    45% 1.9 1.9 1.9 1.9 1.9 1.9 1.8 1.7 1.6 1.5 1.4 1.4 1.3 1.3 1.2 1.2
    50% 1.9 1.9 1.9 1.9 1.9 1.9 1.8 1.7 1.6 1.5 1.4 1.4 1.3 1.3 1.2 1.2
    55% 1.9 1.9 1.9 1.9 1.9 1.9 1.8 1.7 1.6 1.5 1.4 1.4 1.3 1.3 1.2 1.2
    60% 1.9 1.9 1.9 1.9 1.9 1.9 1.8 1.7 1.6 1.5 1.4 1.4 1.3 1.3 1.2 1.2
    65% 1.9 1.9 1.9 1.9 1.9 1.9 1.8 1.7 1.6 1.5 1.4 1.4 1.3 1.2 1.2 1.2
    70% 1.9 1.9 1.9 1.9 1.9 1.9 1.8 1.6 1.6 1.5 1.4 1.3 1.3 1.2 1.2 1.2
    75% 1.9 1.9 1.9 1.9 1.9 1.9 1.7 1.6 1.6 1.5 1.4 1.3 1.3 1.2 1.2 1.2
    80% 1.9 1.9 1.9 1.9 1.9 1.9 1.7 1.6 1.5 1.5 1.4 1.3 1.3 1.2 1.2 1.2
    85% 1.9 1.9 1.9 1.9 1.9 1.9 1.7 1.6 1.5 1.5 1.4 1.3 1.3 1.2 1.2 1.2
    90% 1.8 1.8 1.8 1.8 1.8 1.8 1.7 1.6 1.5 1.5 1.4 1.3 1.3 1.2 1.2 1.2
    95% 1.8 1.8 1.8 1.8 1.8 1.8 1.7 1.6 1.5 1.5 1.4 1.3 1.3 1.2 1.2 1.2
    100% 1.8 1.8 1.8 1.8 1.8 1.8 1.7 1.6 1.5 1.4 1.4 1.3 1.3 1.2 1.2 1.2
    Profile B without Customer Capital
    Share in PFA Climate Plus/Years until retirement 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0
    0% 3.3 3.3 3.3 3.1 2.9 2.7 2.5 2.4 2.2 2.1 2.0 1.9 1.8 1.7 1.7 1.7
    5% 3.3 3.3 3.3 3.0 2.8 2.7 2.5 2.4 2.2 2.1 2.0 1.9 1.8 1.7 1.7 1.7
    10% 3.3 3.3 3.3 3.0 2.8 2.7 2.5 2.3 2.2 2.1 2.0 1.9 1.8 1.7 1.7 1.7
    15% 3.3 3.3 3.3 3.0 2.8 2.6 2.5 2.3 2.2 2.1 2.0 1.9 1.8 1.7 1.7 1.7
    20% 3.3 3.3 3.3 3.0 2.8 2.6 2.5 2.3 2.2 2.1 2.0 1.9 1.8 1.7 1.7 1.7
    25% 3.3 3.3 3.3 3.0 2.8 2.6 2.5 2.3 2.2 2.1 2.0 1.9 1.8 1.7 1.7 1.7
    30% 3.3 3.3 3.3 3.0 2.8 2.6 2.5 2.3 2.2 2.1 2.0 1.9 1.8 1.7 1.7 1.7
    35% 3.3 3.3 3.3 3.0 2.8 2.6 2.5 2.3 2.2 2.1 2.0 1.9 1.8 1.7 1.7 1.7
    40% 3.2 3.2 3.2 3.0 2.8 2.6 2.5 2.3 2.2 2.1 2.0 1.9 1.8 1.7 1.7 1.7
    45% 3.2 3.2 3.2 3.0 2.8 2.6 2.5 2.3 2.2 2.1 2.0 1.9 1.8 1.7 1.7 1.7
    50% 3.2 3.2 3.2 3.0 2.8 2.6 2.4 2.3 2.2 2.1 1.9 1.8 1.8 1.7 1.7 1.6
    55% 3.2 3.2 3.2 3.0 2.8 2.6 2.4 2.3 2.2 2.0 1.9 1.8 1.8 1.7 1.6 1.6
    60% 3.2 3.2 3.2 3.0 2.8 2.6 2.4 2.3 2.2 2.0 1.9 1.8 1.8 1.7 1.6 1.6
    65% 3.2 3.2 3.2 3.0 2.8 2.6 2.4 2.3 2.2 2.0 1.9 1.8 1.7 1.7 1.6 1.6
    70% 3.2 3.2 3.2 3.0 2.8 2.6 2.4 2.3 2.1 2.0 1.9 1.8 1.7 1.7 1.6 1.6
    75% 3.2 3.2 3.2 3.0 2.8 2.6 2.4 2.3 2.1 2.0 1.9 1.8 1.7 1.7 1.6 1.6
    80% 3.2 3.2 3.2 3.0 2.8 2.6 2.4 2.3 2.1 2.0 1.9 1.8 1.7 1.7 1.6 1.6
    85% 3.2 3.2 3.2 3.0 2.8 2.6 2.4 2.3 2.1 2.0 1.9 1.8 1.7 1.7 1.6 1.6
    90% 3.2 3.2 3.2 3.0 2.8 2.6 2.4 2.3 2.1 2.0 1.9 1.8 1.7 1.6 1.6 1.6
    95% 3.2 3.2 3.2 3.0 2.7 2.6 2.4 2.3 2.1 2.0 1.9 1.8 1.7 1.6 1.6 1.6
    100% 3.2 3.2 3.2 2.9 2.7 2.6 2.4 2.2 2.1 2.0 1.9 1.8 1.7 1.6 1.6 1.6
    Profile C without Customer Capital
    Share in PFA Climate Plus/Years until retirement 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0
    0% 4.7 4.7 4.4 4.1 3.8 3.6 3.3 3.1 3.0 2.8 2.6 2.5 2.4 2.3 2.2 2.2
    5% 4.7 4.7 4.4 4.1 3.8 3.5 3.3 3.1 2.9 2.8 2.6 2.5 2.4 2.3 2.2 2.2
    10% 4.7 4.7 4.4 4.1 3.8 3.5 3.3 3.1 2.9 2.8 2.6 2.5 2.4 2.3 2.2 2.2
    15% 4.7 4.7 4.4 4.1 3.8 3.5 3.3 3.1 2.9 2.8 2.6 2.5 2.4 2.3 2.2 2.2
    20% 4.7 4.7 4.3 4.0 3.8 3.5 3.3 3.1 2.9 2.8 2.6 2.5 2.4 2.3 2.2 2.2
    25% 4.7 4.7 4.3 4.0 3.8 3.5 3.3 3.1 2.9 2.8 2.6 2.5 2.4 2.3 2.2 2.2
    30% 4.7 4.7 4.3 4.0 3.8 3.5 3.3 3.1 2.9 2.8 2.6 2.5 2.4 2.3 2.2 2.2
    35% 4.7 4.7 4.3 4.0 3.8 3.5 3.3 3.1 2.9 2.8 2.6 2.5 2.4 2.2 2.2 2.2
    40% 4.7 4.7 4.3 4.0 3.8 3.5 3.3 3.1 2.9 2.8 2.6 2.5 2.4 2.2 2.2 2.2
    45% 4.7 4.7 4.3 4.0 3.7 3.5 3.3 3.1 2.9 2.7 2.6 2.5 2.3 2.2 2.2 2.2
    50% 4.7 4.7 4.3 4.0 3.7 3.5 3.3 3.1 2.9 2.7 2.6 2.5 2.3 2.2 2.2 2.2
    55% 4.7 4.7 4.3 4.0 3.7 3.5 3.3 3.1 2.9 2.7 2.6 2.5 2.3 2.2 2.2 2.1
    60% 4.6 4.6 4.3 4.0 3.7 3.5 3.3 3.1 2.9 2.7 2.6 2.4 2.3 2.2 2.2 2.1
    65% 4.6 4.6 4.3 4.0 3.7 3.5 3.3 3.1 2.9 2.7 2.6 2.4 2.3 2.2 2.1 2.1
    70% 4.6 4.6 4.3 4.0 3.7 3.5 3.3 3.1 2.9 2.7 2.6 2.4 2.3 2.2 2.1 2.1
    75% 4.6 4.6 4.3 4.0 3.7 3.5 3.3 3.1 2.9 2.7 2.6 2.4 2.3 2.2 2.1 2.1
    80% 4.6 4.6 4.3 4.0 3.7 3.5 3.2 3.1 2.9 2.7 2.6 2.4 2.3 2.2 2.1 2.1
    85% 4.6 4.6 4.3 4.0 3.7 3.5 3.2 3.0 2.9 2.7 2.6 2.4 2.3 2.2 2.1 2.1
    90% 4.6 4.6 4.3 4.0 3.7 3.5 3.2 3.0 2.9 2.7 2.5 2.4 2.3 2.2 2.1 2.1
    95% 4.6 4.6 4.3 4.0 3.7 3.5 3.2 3.0 2.9 2.7 2.5 2.4 2.3 2.2 2.1 2.1
    100% 4.6 4.6 4.3 4.0 3.7 3.5 3.2 3.0 2.9 2.7 2.5 2.4 2.3 2.2 2.1 2.1
    Profile D without Customer Capital
    Share in PFA Climate Plus/Years until retirement 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0
    0% 5.9 5.7 5.3 4.9 4.6 4.3 4.1 3.8 3.6 3.4 3.2 3.1 2.9 2.8 2.7 2.7
    5% 5.9 5.7 5.3 4.9 4.6 4.3 4.1 3.8 3.6 3.4 3.2 3.1 2.9 2.8 2.7 2.7
    10% 5.9 5.7 5.3 4.9 4.6 4.3 4.1 3.8 3.6 3.4 3.2 3.1 2.9 2.8 2.7 2.7
    15% 5.9 5.7 5.3 4.9 4.6 4.3 4.1 3.8 3.6 3.4 3.2 3.1 2.9 2.8 2.7 2.7
    20% 5.9 5.7 5.3 4.9 4.6 4.3 4.1 3.8 3.6 3.4 3.2 3.1 2.9 2.8 2.7 2.7
    25% 5.9 5.7 5.3 4.9 4.6 4.3 4.0 3.8 3.6 3.4 3.2 3.1 2.9 2.8 2.7 2.7
    30% 5.9 5.7 5.3 4.9 4.6 4.3 4.0 3.8 3.6 3.4 3.2 3.1 2.9 2.8 2.7 2.7
    35% 5.9 5.7 5.3 4.9 4.6 4.3 4.0 3.8 3.6 3.4 3.2 3.0 2.9 2.8 2.7 2.7
    40% 5.9 5.7 5.3 4.9 4.6 4.3 4.0 3.8 3.6 3.4 3.2 3.0 2.9 2.8 2.7 2.7
    45% 5.9 5.7 5.3 4.9 4.6 4.3 4.0 3.8 3.6 3.4 3.2 3.0 2.9 2.8 2.7 2.7
    50% 5.9 5.7 5.3 4.9 4.6 4.3 4.0 3.8 3.6 3.4 3.2 3.0 2.9 2.7 2.7 2.7
    55% 5.9 5.7 5.3 4.9 4.6 4.3 4.0 3.8 3.6 3.4 3.2 3.0 2.9 2.7 2.7 2.7
    60% 5.9 5.7 5.3 4.9 4.6 4.3 4.0 3.8 3.6 3.4 3.2 3.0 2.9 2.7 2.7 2.7
    65% 5.9 5.6 5.2 4.9 4.6 4.3 4.0 3.8 3.6 3.4 3.2 3.0 2.9 2.7 2.7 2.7
    70% 5.9 5.6 5.2 4.9 4.6 4.3 4.0 3.8 3.6 3.4 3.2 3.0 2.9 2.7 2.7 2.7
    75% 5.9 5.6 5.2 4.9 4.6 4.3 4.0 3.8 3.5 3.3 3.2 3.0 2.9 2.7 2.7 2.7
    80% 5.9 5.6 5.2 4.9 4.6 4.3 4.0 3.8 3.5 3.3 3.2 3.0 2.9 2.7 2.7 2.7
    85% 5.9 5.6 5.2 4.9 4.5 4.3 4.0 3.8 3.5 3.3 3.2 3.0 2.8 2.7 2.7 2.6
    90% 5.9 5.6 5.2 4.9 4.5 4.3 4.0 3.7 3.5 3.3 3.2 3.0 2.8 2.7 2.6 2.6
    95% 5.9 5.6 5.2 4.9 4.5 4.2 4.0 3.7 3.5 3.3 3.2 3.0 2.8 2.7 2.6 2.6
    100% 5.9 5.6 5.2 4.9 4.5 4.2 4.0 3.7 3.5 3.3 3.1 3.0 2.8 2.7 2.6 2.6

    Updated Jan. 1, 2021.

  • Risk values between 5.0 and 5.9 represent the highest risk. Here, your savings may fluctuate significantly from one year to the next.
  • Risk values between 1.0 and 1.9 represent the lowest risk. Here, fluctuations will generally be less pronounced.

    • Once you have found the risk value, you can see here how much the savings may fluctuate throughout a year (link to Insurance & Pension Denmark's website, in Danish only).

    Please find the method description at Insurance & Pension Denmark's website (in Danish only)
    Profile risk classification

    Based on Insurance & Pension Denmark's risk bands, the profiles are risk classified with these classifications:
    Profile A: Low risk
    Profile B: Low risk
    Profile C: Medium risk
    Profile D: High risk 

    Deviations from Insurance & Pension Denmark’s (IPD) risk classification
    PFA’s profiles deviate from their risk classification at the following times:

    ● Profile B deviates from IPD’s risk classification for low risk at the following times and for the following shares in PFA Climate Plus. In the event of the deviations, it is classified as medium risk according to IPD.

    The risk value deviates 0,1 at 17 to 15 years until retirement with 0-35% in PFA Climate Plus.
    The risk value deviates 0,1-0,2 at 14 to 13 years until retirement with 0-100% in PFA Climate Plus.
    The risk value deviates 0,1 at 12 years until retirement with 0% in PFA Climate Plus.
    The risk value deviates 0,1 at 4 to 5 years after retirement with 0-45% in PFA Climate Plus.

    ● Profile C deviates from IPD’s risk classification for medium risk at the following times and for the following shares in PFA Climate Plus. In the event of the deviations, it is classified as high risk according to IPD.

    The risk value deviates 0,1 at 25 to 21 years until retirement with 0-55% in PFA Climate Plus.
    The risk value deviates 0,1-0,4 at 20 to 13 years until retirement with 0-100% in PFA Climate Plus.
    The risk value deviates 0,1 at 12 years until retirement with 0-15% in PFA Climate Plus.

    ● Profile D deviates from IPD’s risk classification for high risk at the following times and for the following shares in PFA Climate Plus. In the event of the deviations, it is classified as medium risk according to IPD.

    The risk value deviates 0,1 at 3 years until retirement with 85-100% in PFA Climate Plus.
    The risk value deviates 0,1 at 2 years until retirement with 50-100% in PFA Climate Plus.
    The risk value deviates 0,1 at 1 year until retirement with 90-100% in PFA Climate Plus.

    ● PFA Plus Profile A without CustomerCapital is not deviating from the risk classification.
     
    Short-term and long-term risk

    Pension savings entail two types of risk. The short-term risk illustrates how much the value of your savings may fluctuate during the next year. And the long-term risk illustrates the level of uncertainty related to your future payouts when you retire.

    The risk value is only an expression of the short-term risk – i.e. how much the value of your savings may fluctuate during the next year.

    The risk depends on your age

    When the risk is high, the return expectations are also high. Therefore, most pension plans entail a high risk while the customer is young. While the customer is young, there is time to regain any losses sustained during years with negative developments on the financial markets.

    When the customer gets older, there is less time to regain any losses sustained. Thus, most pension plans gradually reduce the risk as the customer gets older.

    Risk labelling of PFA Optional

    Risk labelling of PFA Optional with CustomerCapital

    Here, you can see the risk value of PFA Optional depending on the distribution you have selected between the high- and low-risk fund. CustomerCapital is placed with 5 % in Global Equity. Read more about CustomerCapital and see your exact share of CustomerCapital at My PFA.

    PFA Optional with PFA CustomerCapital
    High-risk fund/Low-risk fund % 100/0 95/5 90/10 85/15 80/20 75/25 70/30 65/35 60/40 55/45 50/50 45/55 40/60 35/65 30/70 25/75 20/80 15/85 10/90 5/95 0/100
    Risk value 100% PFA Plus 5,9 5,8 5,5 5,3 5,0 4,7 4,4 4,2 3,9 3,6 3,4 3,1 2,8 2,6 2,3 2,1 1,8 1,6 1,4 1,2 1,0
    Risk value 100% PFA Climate Plus 5.9 5.7 5.5 5.2 4.9 4.6 4.4 4.1 3.8 3.5 3.3 3.0 2.7 2.5 2.2 2.0 1.7 1.5 1.3 1.1 1.0
  • Risk values between 5.0 and 5.9 represent the highest risk. Here, your savings may fluctuate significantly from one year to the next.
  • Risk values between 1.0 and 1.9 represent the lowest risk. Here, fluctuations will generally be less pronounced.

    • Once you have found the risk value, you can see here (in Danish only) how much the savings may fluctuate throughout a year.

    Please find the method description at Insurance & Pension Denmark’s website (in Danish only)
    Short-term and long-term risk

    Pension savings entail two types of risk. The short-term risk illustrates how much the value of your savings may fluctuate during the next year. And the long-term risk illustrates the level of uncertainty related to your future payouts when you retire.

    The risk value is only an expression of the short-term risk – i.e. how much the value of your savings may fluctuate during the next year.

    The risk depends on your age

    When the risk is high, the return expectations are also high. Therefore, most pension plans entail a high risk while the customer is young. While the customer is young, there is time to regain any losses sustained during years with negative developments on the financial markets.

    When the customer gets older, there is less time to regain any losses sustained. Thus, most pension plans gradually reduce the risk as the customer gets older.


    Risk labelling of PFA Optional without CustomerCapital

    Here, you can see the risk value of PFA Optional depending on the distribution you have selected between the high- and low-risk fund.

    PFA Optional without PFA CustomerCapital
    High-risk fund/Low-risk fund % 100/0 95/5 90/10 85/15 80/20 75/25 70/30 65/35 60/40 55/45 50/50 45/55 40/60 35/65 30/70 25/75 20/80 15/85 10/90 5/95 0/100
    Risk value 100% PFA Plus 5.9 5.9 5.6 5.3 5.0 4.7 4.4 4.1 3.9 3.6 3.3 3.0 2.7 2.5 2.2 1.9 1.7 1.5 1.3 1.1 1.0
    Risk value 100% PFA Climate Plus 5,9 5,8 5,5 5,2 4,9 4,6 4,3 4,0 3,8 3,5 3,2 2,9 2,6 2,4 2,1 1,8 1,6 1,4 1,2 1,0 1,0
  • Risk values between 5.0 and 5.9 represent the highest risk. Here, your savings may fluctuate significantly from one year to the next.
  • Risk values between 1.0 and 1.9 represent the lowest risk. Here, fluctuations will generally be less pronounced.

    • Once you have found the risk value, you can see here (in Danish only) how much the savings may fluctuate throughout a year.

    Please find the method description at Insurance & Pension Denmark’s website (in Danish only)
    Short-term and long-term risk

    Pension savings entail two types of risk. The short-term risk illustrates how much the value of your savings may fluctuate during the next year. And the long-term risk illustrates the level of uncertainty related to your future payouts when you retire.

    The risk value is only an expression of the short-term risk – i.e. how much the value of your savings may fluctuate during the next year.

    The risk depends on your age

    When the risk is high, the return expectations are also high. Therefore, most pension plans entail a high risk while the customer is young. While the customer is young, there is time to regain any losses sustained during years with negative developments on the financial markets.

    When the customer gets older, there is less time to regain any losses sustained. Thus, most pension plans gradually reduce the risk as the customer gets older.