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 and PFA Optional have last been updated Jan 1, 2020. PFA Cliamte Plus has last been updated June 11, 2020.
Paragraphs regarding ”Deviations from Insurance & Pension Denmark’s recommendation” have last been updated July 1, 2020

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.

  • 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 recommendation

    The upper and lower limits of how high or low the short-term investment risk can be for an investment profile to be categorised as “Medium risk” is fixed by Insurance & Pension Denmark (IPD).

    As of 1stJuly PFA’s profiles deviate from the recommendations when it comes to:

    PFA Plus Profile B with 14 and 13 years until retirement in 2020 has a risk value of 2.9, which is 0.1 higher than Insurance & Pension Denmark’s upper limit of 2.8. From one year to 5 years after retirement, the risk value is 1.7, which is 0.1 higher than Insurance & Pension Denmark’s upper limit of 1.6 1 & 2 years after retirement and 0.2 higher for 3-5 years, where the limit is 1.5.

    PFA Plus Profile C with 15 and 14 years until retirement in 2020 has a risk value of 4.0, which is 0.1 higher than Insurance & Pension Denmark’s upper limit of 3.9.

    PFA Plus Profile D with 4 years until retirement in 2020 has a risk value of 2.7, which is 0.1 lower than Insurance & Pension Denmark’s lower limit of 2.8 for high risk. With 3 years until retirement the risk value is 2.6, which is 0.1 lower than the lower limit. With 2 years and 1 year until retirement the risk value is 2.5, which is 0.1 lower than the lower limit.

    PFA’s investment profiles observes the limits of all other investment horizons.

    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.

     
  • 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 recommendation

    The upper and lower limits of how high or low the short-term investment risk can be for an investment profile to be categorised as “Medium risk” is fixed by Insurance & Pension Denmark (IPD).

    As of 1stJuly PFA’s profiles deviate from the recommendations when it comes to:

    PFA Plus Profile B with 14 and 13 years until retirement in 2020 has a risk value of 2.9, which is 0.1 higher than Insurance & Pension Denmark’s upper limit of 2.8. From 3 years after retirement to 5 years after retirement the risk value is 1.6, which is 0.1 higher that the limit.

    PFA Plus Profile C with 15 and 14 years until retirement in 2020 has a risk value of 4.0, which is 0.1 higher than Insurance & Pension Denmark’s upper limit of 3.9.

    PFA Plus Profile D with 7 years until retirement has in 2020 a risk value of 3.1, which is 0.1 lower than Insurance & Pension Denmark’s lower limit of 3.2 for high risk. With 5 years until retirement the risk value is 2.8, which is 0.1 lower than the lower limit of 2.9. With 4 years until retirement the risk value is 2.7, which is 0.1 lower than the lower limit of 2.8. With 3 years until retirement the risk value is 2.6, which is 0.1 lower than the lower limit of 2.7. With 2 years until retirement the risk value is 2.5, which is 0.1 lower than the lower limit of 2.6. With 1 year until retirement the risk value is 2.4, which is 0.2 lower than the lower limit of 2.6

    PFA’s investment profiles observes the limits of all other investment horizons.

    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.


  • 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 recommendation

    The upper and lower limits of how high or low the short-term investment risk can be for an investment profile to be categorised as “Medium risk” is fixed by Insurance & Pension Denmark (IPD).

    As of 1stJuly PFA’s profiles deviate from the recommendations when it comes to:

    PFA Plus Profile C with 15 and 14 years until retirement in 2020 has a risk percentage of 4.0, which is 0.1 higher than Insurance & Pension Denmark’s upper limit of 3.9.

    PFA Plus Profile D with 7 years until retirement has in 2020 a risk value of 3.1, which is 0.1 lower than Insurance & Pension Denmark’s lower limit of 3.2 for high risk. With 6 years until retirement the risk value is 2.9, which is 0.1 lower than the lower limit of 3.0. With 5 years until retirement the risk value is 2.8, which is 0.1 lower than the lower limit of 2.9. With 4 years until retirement the risk value is 2.7, which is 0.1 lower than the lower limit of 2.8. With 3 years until retirement the risk value is 2.5, which is 0.2 lower than the lower limit of 2.7. With 2 years until retirement the risk value is 2.4, which is 0.2 lower than the lower limit of 2.6. With 1 year until retirement the risk value is 2.4, which is 0.2 lower than the lower limit of 2.6.

    PFA’s investment profiles observes the limits of all other investment horizons. 

    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.

     


     
  • 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 recommendation

    The upper and lower limits of how high or low the short-term investment risk can be for an investment profile to be categorised as “Medium risk” is fixed by Insurance & Pension Denmark (IPD).


    As of 1stJuly PFA’s profiles deviate from the recommendations when it comes to:

    PFA Plus Profile C with 15 and 14 years until retirement in 2020 has a risk percentage of 4.0, which is 0.1 higher than Insurance & Pension Denmark’s upper limit of 3.9.

    PFA Plus Profile D with 8 year until retirement has in 2020 a risk value of 3.2, which is 0.1 lower than Insurance & Pension Denmark’s lower limit of 3.3 for high risk. With 7 year until retirement the risk value is 3.1, which is 0.1 lower than Insurance & Pension Denmark’s lower limit of 3.2 for high risk. With 6 years until retirement the risk value is 2.9, which is 0.1 lower than the lower limit of 3.0. With 5 years until retirement the risk value is 2.8, which is 0.1 lower than the lower limit of 2.9. With 4 years until retirement the risk value is 2.7, which is 0.1 lower than the lower limit of 2.8. With 3 years until retirement the risk value is 2.5, which is 0.2 lower than the lower limit of 2.7. With 2 years until retirement the risk value is 2.4, which is 0.2 lower than the lower limit of 2.6. With 1 year until retirement the risk value is 2.4, which is 0.2 lower than the lower limit of 2.6. 

    PFA’s investment profiles observes the limits of all other investment horizons.

    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% 1,9 1,9 1,9 1,9 1,9 1,9 1,8 1,7 1,6 1,6 1,5 1,5 1,4 1,4 1,3 1,3
    5% 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 1,4 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 1,4 1,3 1,3
    15% 1,8 1,8 1,8 1,8 1,8 1,8 1,7 1,7 1,6 1,5 1,5 1,4 1,4 1,3 1,3 1,3
    20% 1,8 1,8 1,8 1,8 1,8 1,8 1,7 1,7 1,6 1,5 1,5 1,4 1,4 1,3 1,3 1,3
    25% 1,8 1,8 1,8 1,8 1,8 1,8 1,7 1,7 1,6 1,5 1,5 1,4 1,4 1,3 1,3 1,3
    30% 1,8 1,8 1,8 1,8 1,8 1,8 1,7 1,6 1,6 1,5 1,5 1,4 1,4 1,3 1,3 1,3
    35% 1,8 1,8 1,8 1,8 1,8 1,8 1,7 1,6 1,6 1,5 1,4 1,4 1,4 1,3 1,3 1,3
    40% 1,8 1,8 1,8 1,8 1,8 1,8 1,7 1,6 1,6 1,5 1,4 1,4 1,3 1,3 1,3 1,3
    45% 1,8 1,8 1,8 1,8 1,8 1,8 1,7 1,6 1,6 1,5 1,4 1,4 1,3 1,3 1,3 1,3
    50% 1,8 1,8 1,8 1,8 1,8 1,8 1,7 1,6 1,5 1,5 1,4 1,4 1,3 1,3 1,3 1,3
    55% 1,8 1,8 1,8 1,8 1,8 1,8 1,7 1,6 1,5 1,5 1,4 1,4 1,3 1,3 1,3 1,2
    60% 1,8 1,8 1,8 1,8 1,8 1,8 1,7 1,6 1,5 1,5 1,4 1,4 1,3 1,3 1,2 1,2
    65% 1,8 1,8 1,8 1,8 1,8 1,8 1,7 1,6 1,5 1,5 1,4 1,4 1,3 1,3 1,2 1,2
    70% 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 1,3 1,2 1,2
    75% 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 1,3 1,2 1,2
    80% 1,7 1,7 1,7 1,7 1,7 1,7 1,7 1,6 1,5 1,4 1,4 1,3 1,3 1,3 1,2 1,2
    85% 1,7 1,7 1,7 1,7 1,7 1,7 1,6 1,6 1,5 1,4 1,4 1,3 1,3 1,2 1,2 1,2
    90% 1,7 1,7 1,7 1,7 1,7 1,7 1,6 1,6 1,5 1,4 1,4 1,3 1,3 1,2 1,2 1,2
    95% 1,7 1,7 1,7 1,7 1,7 1,7 1,6 1,6 1,5 1,4 1,4 1,3 1,3 1,2 1,2 1,2
    100% 1,7 1,7 1,7 1,7 1,7 1,7 1,6 1,5 1,5 1,4 1,4 1,3 1,3 1,2 1,2 1,2
    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% 2,9 2,9 2,9 2,7 2,6 2,4 2,3 2,2 2,1 2,0 1,9 1,8 1,8 1,7 1,7 1,7
    5% 2,9 2,9 2,9 2,7 2,6 2,4 2,3 2,2 2,1 2,0 1,9 1,8 1,8 1,7 1,7 1,7
    10% 2,9 2,9 2,9 2,7 2,6 2,4 2,3 2,2 2,1 2,0 1,9 1,8 1,8 1,7 1,7 1,7
    15% 2,9 2,9 2,9 2,7 2,5 2,4 2,3 2,2 2,1 2,0 1,9 1,8 1,7 1,7 1,7 1,6
    20% 2,9 2,9 2,9 2,7 2,5 2,4 2,3 2,2 2,0 2,0 1,9 1,8 1,7 1,7 1,6 1,6
    25% 2,9 2,9 2,9 2,7 2,5 2,4 2,3 2,1 2,0 2,0 1,9 1,8 1,7 1,7 1,6 1,6
    30% 2,9 2,9 2,9 2,7 2,5 2,4 2,3 2,1 2,0 1,9 1,9 1,8 1,7 1,7 1,6 1,6
    35% 2,9 2,9 2,9 2,7 2,5 2,4 2,3 2,1 2,0 1,9 1,9 1,8 1,7 1,7 1,6 1,6
    40% 2,9 2,9 2,9 2,7 2,5 2,4 2,2 2,1 2,0 1,9 1,8 1,8 1,7 1,6 1,6 1,6
    45% 2,9 2,9 2,9 2,7 2,5 2,4 2,2 2,1 2,0 1,9 1,8 1,8 1,7 1,6 1,6 1,6
    50% 2,9 2,9 2,9 2,7 2,5 2,4 2,2 2,1 2,0 1,9 1,8 1,8 1,7 1,6 1,6 1,6
    55% 2,9 2,9 2,9 2,7 2,5 2,4 2,2 2,1 2,0 1,9 1,8 1,8 1,7 1,6 1,6 1,6
    60% 2,9 2,9 2,9 2,7 2,5 2,4 2,2 2,1 2,0 1,9 1,8 1,7 1,7 1,6 1,6 1,6
    65% 2,9 2,9 2,9 2,7 2,5 2,3 2,2 2,1 2,0 1,9 1,8 1,7 1,7 1,6 1,6 1,6
    70% 2,9 2,9 2,9 2,7 2,5 2,3 2,2 2,1 2,0 1,9 1,8 1,7 1,7 1,6 1,6 1,6
    75% 2,8 2,8 2,8 2,7 2,5 2,3 2,2 2,1 2,0 1,9 1,8 1,7 1,7 1,6 1,6 1,6
    80% 2,8 2,8 2,8 2,6 2,5 2,3 2,2 2,1 2,0 1,9 1,8 1,7 1,6 1,6 1,6 1,6
    85% 2,8 2,8 2,8 2,6 2,5 2,3 2,2 2,1 2,0 1,9 1,8 1,7 1,6 1,6 1,6 1,5
    90% 2,8 2,8 2,8 2,6 2,5 2,3 2,2 2,1 2,0 1,9 1,8 1,7 1,6 1,6 1,5 1,5
    95% 2,8 2,8 2,8 2,6 2,5 2,3 2,2 2,1 2,0 1,9 1,8 1,7 1,6 1,6 1,5 1,5
    100% 2,8 2,8 2,8 2,6 2,5 2,3 2,2 2,1 1,9 1,9 1,8 1,7 1,6 1,6 1,5 1,5
    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% 4,0 4,0 3,8 3,5 3,3 3,1 2,9 2,8 2,6 2,5 2,4 2,3 2,2 2,1 2,1 2,1
    5% 4,0 4,0 3,7 3,5 3,3 3,1 2,9 2,8 2,6 2,5 2,4 2,3 2,2 2,1 2,1 2,1
    10% 4,0 4,0 3,7 3,5 3,3 3,1 2,9 2,8 2,6 2,5 2,4 2,3 2,2 2,1 2,1 2,0
    15% 4,0 4,0 3,7 3,5 3,3 3,1 2,9 2,8 2,6 2,5 2,4 2,3 2,2 2,1 2,1 2,0
    20% 4,0 4,0 3,7 3,5 3,3 3,1 2,9 2,8 2,6 2,5 2,4 2,3 2,2 2,1 2,0 2,0
    25% 4,0 4,0 3,7 3,5 3,3 3,1 2,9 2,8 2,6 2,5 2,4 2,3 2,2 2,1 2,0 2,0
    30% 4,0 4,0 3,7 3,5 3,3 3,1 2,9 2,8 2,6 2,5 2,4 2,3 2,2 2,1 2,0 2,0
    35% 4,0 4,0 3,7 3,5 3,3 3,1 2,9 2,8 2,6 2,5 2,4 2,3 2,2 2,1 2,0 2,0
    40% 4,0 4,0 3,7 3,5 3,3 3,1 2,9 2,7 2,6 2,5 2,4 2,3 2,2 2,1 2,0 2,0
    45% 4,0 4,0 3,7 3,5 3,3 3,1 2,9 2,7 2,6 2,5 2,4 2,2 2,2 2,1 2,0 2,0
    50% 4,0 4,0 3,7 3,5 3,3 3,1 2,9 2,7 2,6 2,5 2,4 2,2 2,1 2,1 2,0 2,0
    55% 4,0 4,0 3,7 3,5 3,3 3,1 2,9 2,7 2,6 2,5 2,3 2,2 2,1 2,1 2,0 2,0
    60% 4,0 4,0 3,7 3,5 3,3 3,1 2,9 2,7 2,6 2,5 2,3 2,2 2,1 2,0 2,0 2,0
    65% 4,0 4,0 3,7 3,5 3,3 3,1 2,9 2,7 2,6 2,5 2,3 2,2 2,1 2,0 2,0 2,0
    70% 4,0 4,0 3,7 3,5 3,3 3,1 2,9 2,7 2,6 2,4 2,3 2,2 2,1 2,0 2,0 2,0
    75% 4,0 4,0 3,7 3,5 3,3 3,1 2,9 2,7 2,6 2,4 2,3 2,2 2,1 2,0 2,0 2,0
    80% 4,0 4,0 3,7 3,5 3,3 3,1 2,9 2,7 2,6 2,4 2,3 2,2 2,1 2,0 2,0 2,0
    85% 4,0 4,0 3,7 3,5 3,3 3,1 2,9 2,7 2,6 2,4 2,3 2,2 2,1 2,0 2,0 2,0
    90% 4,0 4,0 3,7 3,5 3,3 3,1 2,9 2,7 2,6 2,4 2,3 2,2 2,1 2,0 2,0 1,9
    95% 4,0 4,0 3,7 3,5 3,3 3,1 2,9 2,7 2,6 2,4 2,3 2,2 2,1 2,0 2,0 1,9
    100% 4,0 4,0 3,7 3,5 3,3 3,0 2,9 2,7 2,6 2,4 2,3 2,2 2,1 2,0 1,9 1,9
    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% 5,1 4,8 4,5 4,2 3,9 3,7 3,5 3,3 3,2 3,0 2,9 2,7 2,6 2,5 2,5 2,5
    5% 5,1 4,8 4,5 4,2 3,9 3,7 3,5 3,3 3,2 3,0 2,9 2,7 2,6 2,5 2,5 2,5
    10% 5,2 4,8 4,5 4,2 3,9 3,7 3,5 3,3 3,2 3,0 2,9 2,7 2,6 2,5 2,5 2,5
    15% 5,2 4,8 4,5 4,2 3,9 3,7 3,5 3,3 3,2 3,0 2,9 2,7 2,6 2,5 2,5 2,5
    20% 5,2 4,8 4,5 4,2 3,9 3,7 3,5 3,3 3,2 3,0 2,9 2,7 2,6 2,5 2,5 2,5
    25% 5,2 4,8 4,5 4,2 3,9 3,7 3,5 3,3 3,1 3,0 2,9 2,7 2,6 2,5 2,5 2,5
    30% 5,2 4,8 4,5 4,2 3,9 3,7 3,5 3,3 3,1 3,0 2,8 2,7 2,6 2,5 2,4 2,4
    35% 5,2 4,8 4,5 4,2 3,9 3,7 3,5 3,3 3,1 3,0 2,8 2,7 2,6 2,5 2,4 2,4
    40% 5,2 4,8 4,5 4,2 3,9 3,7 3,5 3,3 3,1 3,0 2,8 2,7 2,6 2,5 2,4 2,4
    45% 5,2 4,8 4,5 4,2 3,9 3,7 3,5 3,3 3,1 3,0 2,8 2,7 2,6 2,5 2,4 2,4
    50% 5,2 4,8 4,5 4,2 3,9 3,7 3,5 3,3 3,1 3,0 2,8 2,7 2,6 2,5 2,4 2,4
    55% 5,2 4,8 4,5 4,2 3,9 3,7 3,5 3,3 3,1 3,0 2,8 2,7 2,6 2,5 2,4 2,4
    60% 5,2 4,8 4,5 4,2 3,9 3,7 3,5 3,3 3,1 3,0 2,8 2,7 2,6 2,5 2,4 2,4
    65% 5,2 4,8 4,5 4,2 3,9 3,7 3,5 3,3 3,1 3,0 2,8 2,7 2,6 2,5 2,4 2,4
    70% 5,2 4,8 4,5 4,2 3,9 3,7 3,5 3,3 3,1 3,0 2,8 2,7 2,6 2,5 2,4 2,4
    75% 5,2 4,8 4,5 4,2 3,9 3,7 3,5 3,3 3,1 3,0 2,8 2,7 2,6 2,5 2,4 2,4
    80% 5,2 4,8 4,5 4,2 3,9 3,7 3,5 3,3 3,1 3,0 2,8 2,7 2,6 2,4 2,4 2,4
    85% 5,2 4,8 4,5 4,2 3,9 3,7 3,5 3,3 3,1 3,0 2,8 2,7 2,5 2,4 2,4 2,4
    90% 5,2 4,9 4,5 4,2 3,9 3,7 3,5 3,3 3,1 2,9 2,8 2,7 2,5 2,4 2,4 2,4
    95% 5,2 4,9 4,5 4,2 3,9 3,7 3,5 3,3 3,1 2,9 2,8 2,7 2,5 2,4 2,4 2,4
    100% 5,2 4,9 4,5 4,2 4,0 3,7 3,5 3,3 3,1 2,9 2,8 2,7 2,5 2,4 2,4 2,4

    Updated June 10th 2020

  • 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 recommendation

    The upper and lower limits of how high or low the short-term investment risk can be for an investment profile to be categorised as “Medium risk” is fixed by Insurance & Pension Denmark (IPD).

    As of 1stJuly PFA’s profiles deviate from the recommendations when it comes to:

    PFA Plus Profile B with 13 and 14 years until retirement with 0-70 % in Climate Plus. 1-2 years after retirement with 0-10 % in Climate Plus. 3-5 years after retirement with 0-80 % in Climate Plus. Deviations are in the upward direction.

    PFA Plus Profile C with 15 and 14 years until retirement with 0-100 % in Climate Plus. Deviations are in the upwards direction.

    PFA Plus Profile D with 7 years until retirement with 25-100 % in Climate Plus. 6 years until retirement with 90-100 % in Climate Plus. 5 years until retirement with 60-100 % in Climate Plus. 4-1 years until retirement with 0-100 % in Climate Plus.  

    PFA Plus Profile A is within the limit.

    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% 1,8 1,8 1,8 1,8 1,8 1,8 1,7 1,6 1,5 1,5 1,4 1,4 1,3 1,3 1,2 1,2
    5% 1,8 1,8 1,8 1,8 1,8 1,8 1,7 1,6 1,5 1,5 1,4 1,4 1,3 1,3 1,2 1,2
    10% 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 1,3 1,2 1,2
    15% 1,7 1,7 1,7 1,7 1,7 1,7 1,7 1,6 1,5 1,4 1,4 1,3 1,3 1,3 1,2 1,2
    20% 1,7 1,7 1,7 1,7 1,7 1,7 1,6 1,6 1,5 1,4 1,4 1,3 1,3 1,2 1,2 1,2
    25% 1,7 1,7 1,7 1,7 1,7 1,7 1,6 1,6 1,5 1,4 1,4 1,3 1,3 1,2 1,2 1,2
    30% 1,7 1,7 1,7 1,7 1,7 1,7 1,6 1,5 1,5 1,4 1,4 1,3 1,3 1,2 1,2 1,2
    35% 1,7 1,7 1,7 1,7 1,7 1,7 1,6 1,5 1,5 1,4 1,4 1,3 1,3 1,2 1,2 1,2
    40% 1,7 1,7 1,7 1,7 1,7 1,7 1,6 1,5 1,5 1,4 1,3 1,3 1,3 1,2 1,2 1,2
    45% 1,7 1,7 1,7 1,7 1,7 1,7 1,6 1,5 1,5 1,4 1,3 1,3 1,2 1,2 1,2 1,2
    50% 1,7 1,7 1,7 1,7 1,7 1,7 1,6 1,5 1,4 1,4 1,3 1,3 1,2 1,2 1,2 1,2
    55% 1,7 1,7 1,7 1,7 1,7 1,7 1,6 1,5 1,4 1,4 1,3 1,3 1,2 1,2 1,2 1,2
    60% 1,7 1,7 1,7 1,7 1,7 1,7 1,6 1,5 1,4 1,4 1,3 1,3 1,2 1,2 1,2 1,2
    65% 1,7 1,7 1,7 1,7 1,7 1,7 1,6 1,5 1,4 1,4 1,3 1,3 1,2 1,2 1,2 1,1
    70% 1,7 1,7 1,7 1,7 1,7 1,7 1,6 1,5 1,4 1,4 1,3 1,3 1,2 1,2 1,1 1,1
    75% 1,7 1,7 1,7 1,7 1,7 1,7 1,6 1,5 1,4 1,3 1,3 1,2 1,2 1,2 1,1 1,1
    80% 1,6 1,6 1,6 1,6 1,6 1,6 1,6 1,5 1,4 1,3 1,3 1,2 1,2 1,2 1,1 1,1
    85% 1,6 1,6 1,6 1,6 1,6 1,6 1,5 1,5 1,4 1,3 1,3 1,2 1,2 1,2 1,1 1,1
    90% 1,6 1,6 1,6 1,6 1,6 1,6 1,5 1,5 1,4 1,3 1,3 1,2 1,2 1,1 1,1 1,1
    95% 1,6 1,6 1,6 1,6 1,6 1,6 1,5 1,4 1,4 1,3 1,3 1,2 1,2 1,1 1,1 1,1
    100% 1,6 1,6 1,6 1,6 1,6 1,6 1,5 1,4 1,4 1,3 1,3 1,2 1,2 1,1 1,1 1,1
    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% 2,9 2,9 2,9 2,7 2,5 2,3 2,2 2,1 2,0 1,9 1,8 1,7 1,7 1,6 1,6 1,6
    5% 2,8 2,8 2,8 2,7 2,5 2,3 2,2 2,1 2,0 1,9 1,8 1,7 1,7 1,6 1,6 1,6
    10% 2,8 2,8 2,8 2,6 2,5 2,3 2,2 2,1 2,0 1,9 1,8 1,7 1,7 1,6 1,6 1,6
    15% 2,8 2,8 2,8 2,6 2,5 2,3 2,2 2,1 2,0 1,9 1,8 1,7 1,6 1,6 1,6 1,6
    20% 2,8 2,8 2,8 2,6 2,5 2,3 2,2 2,1 2,0 1,9 1,8 1,7 1,6 1,6 1,6 1,5
    25% 2,8 2,8 2,8 2,6 2,5 2,3 2,2 2,1 2,0 1,9 1,8 1,7 1,6 1,6 1,5 1,5
    30% 2,8 2,8 2,8 2,6 2,5 2,3 2,2 2,1 1,9 1,9 1,8 1,7 1,6 1,6 1,5 1,5
    35% 2,8 2,8 2,8 2,6 2,5 2,3 2,2 2,0 1,9 1,8 1,8 1,7 1,6 1,6 1,5 1,5
    40% 2,8 2,8 2,8 2,6 2,4 2,3 2,2 2,0 1,9 1,8 1,8 1,7 1,6 1,5 1,5 1,5
    45% 2,8 2,8 2,8 2,6 2,4 2,3 2,2 2,0 1,9 1,8 1,7 1,7 1,6 1,5 1,5 1,5
    50% 2,8 2,8 2,8 2,6 2,4 2,3 2,1 2,0 1,9 1,8 1,7 1,7 1,6 1,5 1,5 1,5
    55% 2,8 2,8 2,8 2,6 2,4 2,3 2,1 2,0 1,9 1,8 1,7 1,7 1,6 1,5 1,5 1,5
    60% 2,8 2,8 2,8 2,6 2,4 2,3 2,1 2,0 1,9 1,8 1,7 1,6 1,6 1,5 1,5 1,5
    65% 2,8 2,8 2,8 2,6 2,4 2,3 2,1 2,0 1,9 1,8 1,7 1,6 1,6 1,5 1,5 1,5
    70% 2,8 2,8 2,8 2,6 2,4 2,3 2,1 2,0 1,9 1,8 1,7 1,6 1,6 1,5 1,5 1,5
    75% 2,8 2,8 2,8 2,6 2,4 2,3 2,1 2,0 1,9 1,8 1,7 1,6 1,6 1,5 1,5 1,5
    80% 2,8 2,8 2,8 2,6 2,4 2,2 2,1 2,0 1,9 1,8 1,7 1,6 1,5 1,5 1,5 1,5
    85% 2,8 2,8 2,8 2,6 2,4 2,2 2,1 2,0 1,9 1,8 1,7 1,6 1,5 1,5 1,5 1,4
    90% 2,8 2,8 2,8 2,6 2,4 2,2 2,1 2,0 1,9 1,8 1,7 1,6 1,5 1,5 1,4 1,4
    95% 2,8 2,8 2,8 2,6 2,4 2,2 2,1 2,0 1,9 1,8 1,7 1,6 1,5 1,5 1,4 1,4
    100% 2,8 2,8 2,8 2,6 2,4 2,2 2,1 2,0 1,9 1,8 1,7 1,6 1,5 1,5 1,4 1,4
    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% 4,0 4,0 3,7 3,5 3,3 3,1 2,9 2,7 2,6 2,4 2,3 2,2 2,1 2,0 2,0 2,0
    5% 4,0 4,0 3,7 3,5 3,3 3,1 2,9 2,7 2,6 2,4 2,3 2,2 2,1 2,0 2,0 2,0
    10% 4,0 4,0 3,7 3,5 3,3 3,1 2,9 2,7 2,6 2,4 2,3 2,2 2,1 2,0 2,0 2,0
    15% 4,0 4,0 3,7 3,5 3,3 3,1 2,9 2,7 2,6 2,4 2,3 2,2 2,1 2,0 2,0 2,0
    20% 4,0 4,0 3,7 3,5 3,3 3,0 2,9 2,7 2,6 2,4 2,3 2,2 2,1 2,0 2,0 1,9
    25% 4,0 4,0 3,7 3,5 3,2 3,0 2,9 2,7 2,5 2,4 2,3 2,2 2,1 2,0 2,0 1,9
    30% 4,0 4,0 3,7 3,5 3,2 3,0 2,9 2,7 2,5 2,4 2,3 2,2 2,1 2,0 1,9 1,9
    35% 4,0 4,0 3,7 3,5 3,2 3,0 2,9 2,7 2,5 2,4 2,3 2,2 2,1 2,0 1,9 1,9
    40% 4,0 4,0 3,7 3,5 3,2 3,0 2,9 2,7 2,5 2,4 2,3 2,2 2,1 2,0 1,9 1,9
    45% 4,0 4,0 3,7 3,5 3,2 3,0 2,8 2,7 2,5 2,4 2,3 2,2 2,1 2,0 1,9 1,9
    50% 4,0 4,0 3,7 3,5 3,2 3,0 2,8 2,7 2,5 2,4 2,3 2,2 2,1 2,0 1,9 1,9
    55% 4,0 4,0 3,7 3,5 3,2 3,0 2,8 2,7 2,5 2,4 2,3 2,2 2,0 2,0 1,9 1,9
    60% 4,0 4,0 3,7 3,5 3,2 3,0 2,8 2,7 2,5 2,4 2,3 2,1 2,0 2,0 1,9 1,9
    65% 4,0 4,0 3,7 3,5 3,2 3,0 2,8 2,7 2,5 2,4 2,2 2,1 2,0 1,9 1,9 1,9
    70% 4,0 4,0 3,7 3,5 3,2 3,0 2,8 2,7 2,5 2,4 2,2 2,1 2,0 1,9 1,9 1,9
    75% 4,0 4,0 3,7 3,5 3,2 3,0 2,8 2,7 2,5 2,4 2,2 2,1 2,0 1,9 1,9 1,9
    80% 4,0 4,0 3,7 3,5 3,2 3,0 2,8 2,6 2,5 2,4 2,2 2,1 2,0 1,9 1,9 1,9
    85% 4,0 4,0 3,7 3,5 3,2 3,0 2,8 2,6 2,5 2,4 2,2 2,1 2,0 1,9 1,9 1,9
    90% 4,0 4,0 3,7 3,5 3,2 3,0 2,8 2,6 2,5 2,3 2,2 2,1 2,0 1,9 1,9 1,8
    95% 4,0 4,0 3,7 3,5 3,2 3,0 2,8 2,6 2,5 2,3 2,2 2,1 2,0 1,9 1,9 1,8
    100% 4,0 4,0 3,7 3,5 3,2 3,0 2,8 2,6 2,5 2,3 2,2 2,1 2,0 1,9 1,8 1,8
    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% 5,2 4,8 4,5 4,2 3,9 3,7 3,5 3,3 3,1 3,0 2,8 2,7 2,6 2,5 2,4 2,4
    5% 5,2 4,8 4,5 4,2 3,9 3,7 3,5 3,3 3,1 3,0 2,8 2,7 2,6 2,4 2,4 2,4
    10% 5,2 4,8 4,5 4,2 3,9 3,7 3,5 3,3 3,1 2,9 2,8 2,7 2,6 2,4 2,4 2,4
    15% 5,2 4,8 4,5 4,2 3,9 3,7 3,5 3,3 3,1 2,9 2,8 2,7 2,5 2,4 2,4 2,4
    20% 5,2 4,8 4,5 4,2 3,9 3,7 3,5 3,3 3,1 2,9 2,8 2,7 2,5 2,4 2,4 2,4
    25% 5,2 4,8 4,5 4,2 3,9 3,7 3,5 3,3 3,1 2,9 2,8 2,7 2,5 2,4 2,4 2,4
    30% 5,2 4,8 4,5 4,2 3,9 3,7 3,5 3,3 3,1 2,9 2,8 2,7 2,5 2,4 2,4 2,4
    35% 5,2 4,8 4,5 4,2 3,9 3,7 3,5 3,3 3,1 2,9 2,8 2,6 2,5 2,4 2,4 2,4
    40% 5,2 4,9 4,5 4,2 3,9 3,7 3,5 3,3 3,1 2,9 2,8 2,6 2,5 2,4 2,4 2,4
    45% 5,2 4,9 4,5 4,2 3,9 3,7 3,5 3,3 3,1 2,9 2,8 2,6 2,5 2,4 2,4 2,3
    50% 5,2 4,9 4,5 4,2 3,9 3,7 3,5 3,3 3,1 2,9 2,8 2,6 2,5 2,4 2,3 2,3
    55% 5,3 4,9 4,5 4,2 3,9 3,7 3,5 3,3 3,1 2,9 2,8 2,6 2,5 2,4 2,3 2,3
    60% 5,3 4,9 4,5 4,2 3,9 3,7 3,5 3,3 3,1 2,9 2,8 2,6 2,5 2,4 2,3 2,3
    65% 5,3 4,9 4,5 4,2 3,9 3,7 3,5 3,3 3,1 2,9 2,8 2,6 2,5 2,4 2,3 2,3
    70% 5,3 4,9 4,5 4,2 3,9 3,7 3,5 3,3 3,1 2,9 2,8 2,6 2,5 2,4 2,3 2,3
    75% 5,3 4,9 4,5 4,2 3,9 3,7 3,5 3,3 3,1 2,9 2,8 2,6 2,5 2,4 2,3 2,3
    80% 5,3 4,9 4,5 4,2 3,9 3,7 3,5 3,3 3,1 2,9 2,7 2,6 2,5 2,4 2,3 2,3
    85% 5,3 4,9 4,5 4,2 3,9 3,7 3,5 3,3 3,1 2,9 2,7 2,6 2,5 2,4 2,3 2,3
    90% 5,3 4,9 4,5 4,2 3,9 3,7 3,5 3,3 3,1 2,9 2,7 2,6 2,5 2,4 2,3 2,3
    95% 5,3 4,9 4,5 4,2 3,9 3,7 3,5 3,2 3,1 2,9 2,7 2,6 2,5 2,3 2,3 2,3
    100% 5,3 4,9 4,5 4,2 3,9 3,7 3,5 3,2 3,1 2,9 2,7 2,6 2,5 2,3 2,3 2,3

    Updated June 10th 2020

  • 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 recommendation

    The upper and lower limits of how high or low the short-term investment risk can be for an investment profile to be categorised as “Medium risk” is fixed by Insurance & Pension Denmark (IPD).

    PFA’s profiles deviate from the recommendations when it comes to:

    PFA Plus Profile B with 14 and 13 years until retirement with 0 % in Climate Plus. 3 to 5 years after retirement with 0-15 % in Climate Plus. Deviations are in the upward direction.

    PFA Plus Profile C with 15 and 14 years until retirement with 0-100 % in Climate Plus. 1 year before retirement with 100% in Climate Plus. Deviations are in the upwards direction and 1 year before it is in the downward direction.

    PFA Plus Profile D with 8 years until retirement with 95-100 % in Climate Plus. 7 years until retirement with 0-100 % in Climate Plus. 6 years until retirement with 10-100 % in Climate Plus. 5 years to 1 year before retirement with 0-100% in Climate Plus. 0-1 year before retirement with 45-100% in Climate Plus.

    PFA Plus Profile A is within the limit.

    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.


  • 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.

  • 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.