CustomerCapital: PFA adjusts its popular model for risk and profit sharing

PFA will reduce contributions to CustomerCapital from 2 to 1 per cent starting in August 2026. The change follows a period of significant growth within the customer community and aims to ensure that PFA can continue to offer high interest rates while avoiding overcapitalisation. This will allow PFA’s funds to be used to create maximum value for customers through lower prices and investments in improved services and solutions.

From 1 August 2026, the customers’ future regular contributions to CustomerCapital will be reduced from 2 to 1 per cent. The adjustment is intended to future-proof the model, enabling PFA to continue offering customers a high expected interest rate on Individual CustomerCapital, which has been 10 per cent annually since 2023. At the same time, this makes PFA more competitive, as it also allows the pension company to lower prices and invest in better services and solutions for its customers.

“Since its launch in 2004, CustomerCapital has returned DKK 30.6 billion to our customers, enabling them to share in our profits. This is one of the strengths of our customer community – the value we create is passed on to our customers, as we are not required to allocate funds elsewhere. We are adjusting the model to ensure that it can continue to deliver a high expected interest rate for many years to come, while also avoiding overcapitalisation. This will allow us to use our funds to create maximum value for our customers in the future,” says Ole Krogh, CEO of PFA.

He emphasises that the change will not affect customers’ existing Individual CustomerCapital but only future contributions and transfers. At the same time, the cap on the proportion of their total savings that customers with PFA’s market rate product, PFA Plus, can have in Individual CustomerCapital upon retirement will also be adjusted. In line with the change, this cap will be reduced from 2 to 1 per cent.

Growth in the customer community creates a need for adjustments
In recent years, PFA has experienced record growth in new customers, resulting in a 70 per cent increase in contributions over three years. If the model were to remain unchanged, PFA risks becoming overcapitalised, which could limit the company’s ability to use its capital most efficiently and in ways that create value for customers.

“We do not wish to build up unnecessary capital, as this could hinder our ability to maximise value for our customers. The adjustment to CustomerCapital frees up funds that can be used for other purposes that benefit all customers – for example, lower prices, improved services and better solutions. For PFA, it is important to leverage our scale to benefit the customer community, and this adjustment supports that goal,” says Ole Krogh.

Part of a strong and efficient investment engine
In recent years, PFA has worked purposefully to strengthen its investment landscape, and according to Ole Krogh, the adjustment to CustomerCapital is a natural part of this development.

“In recent years, we have implemented several initiatives to improve our investment setup. These include simplifying and strengthening risk management, introducing new investment profiles with greater long-term return potential, and reducing costs. Together with the adjustment to CustomerCapital, these efforts will ensure that we can continue to create maximum value and financial security for our 1.3 million customers, which is one of our most important tasks,” he concludes.