PFA launches index-based pension savings

From 1 October 2026 PFA will launch a new index-based pension product, PFA Index Plus, for its 1.3 million customers. The product has the same familiar investment profiles and gradual risk reduction as the existing PFA Plus products, PFA Plus and PFA Climate Plus, but with a simpler investment portfolio that automatically follows selected indices. This makes the product cheaper, which is typically a desirable feature of index products.

Interest in investing has been steadily increasing in recent years, and many people in Denmark have in that context discovered index funds. PFA wishes to accommodate this interest and is therefore launching PFA Index Plus for its pension customers on 1 October 2026.

“We have seen strong demand from customers who would like to invest all or part of their pension savings in an index product. We want to accommodate this, and therefore, from 1 October, we are offering PFA Index Plus – a pension product with the same investment profiles and gradual risk reduction as our existing Plus products, but with an index-based investment approach,” says Chief Investment Officer Kasper A. Lorenzen.

Familiar product design – different investment approach
By reusing key elements from the main product PFA achieves two things at once: the product becomes cheaper to develop and administer, and at the same time it is familiar and reassuring for customers. By contrast, the portfolio and investment approach are different.

“The product design is the same, but the portfolio and investment approach are typical of an index product. This means that the investments automatically follow selected indices and that there is no active selection of equities and bonds. Nor is there any currency hedging of equities, and the product does not contain unlisted investments such as property and private equity,” explains Kasper A. Lorenzen.

Although PFA Index Plus is simpler than PFA’s actively managed Plus products, customers get something extra compared with the very simple index products. This includes, among other things, the reassurance that the companies in the index comply with PFA’s policy on responsible investments, ongoing advisory services and access to a digital universe where customers can receive recommendations on their investment choices. In addition, PFA Index Plus also comes with rebalancing and gradual risk reduction, which is likewise not common for typical index products, including those PFA already offers on its 'Du investerer' platform.

How to access PFA Index Plus
PFA’s customers will have access to PFA Index Plus via the investment guide on mitpfa.dk, where they are guided to the savings product that matches their preferences and risk profile. PFA Index Plus can be combined with PFA’s other savings products – PFA Plus, PFA Climate Plus, PFA Flexible and the investment funds in 'Du investerer'. It is therefore up to each individual how their savings are allocated across the different savings products.
Kasper A. Lorenzen emphasises in conclusion that PFA’s standard recommendation to customers will continue to be PFA Plus, as the broader portfolio over a long time horizon is expected to generate a better return.

“PFA Plus remains our recommended product. The active management, the broader portfolio and access to unlisted assets are expected in the long term to give customers the best return – and this is supported by the assessments we have from, for example, Rådet for Afkastforudsætninger, which is an independent council.”