Frequently asked questions
Frequently asked questions
1. Why is PFA making these changes?
We adjust the gradual risk reduction curve due to the longer life expectancy of the population in Denmark and the fact that people retire later. At the same time, PFA expects that high-risk assets will generate additional return for the pension saver who invests for the long term. That is why we estimate that our customers will generally accumulate more money for their retirement when PFA postpones the gradual reduction of their investment risk.
2. The product was introduced in 2009 – and this is the first change since the introduction. Do you expect another 8-10 years to pass before more adjustments are made?
No. PFA will regularly evaluate how we can adjust our products to match the development trends in the market and society.
3. Have the initial and final risk levels also been adjusted?
No, they have not been adjusted. They match the levels of today, where the following initial and final risk levels apply to the High-risk fund:
Profile A - initial level 25 %, final level 10 %
Profile B - initial level 50 %, final level 20 %
Profile C - initial level 75 %, final level 30 %
Profile D - initial level 100 %, final level 40 %
In general, fluctuations may occur regularly between the High-risk and Low-risk funds. PFA Pension can at any time and without notice adjust the distribution between the High-risk and Low-risk funds and change the asset composition of the funds.
4. How soon will the change apply to the profiles for the customers, whose gradual risk reduction has already begun?
The change will be phased in within max. 12 months. For the customers who are closest to the new profile, the change will be implemented very quickly and for customers who are further from the new profile, the change will be implemented gradually within max. 12 months.
5. Is the gradual risk reduction the same for an instalment pension as for a lifelong life pension?
Yes, it is. We do not distinguish between the different tax codes.
6. Is it possible to keep the present gradual risk reduction curve and not switch to the new one?
No, it is not. Overall, we expect that our customers will have more money for their retirement after the adjustment of the profiles. We will therefore adjust the gradual risk reduction curve in all our profiles to the effect that the gradual reduction of the risk will be postponed. If you want another risk profile, we recommend that you go through PFA’s Investment Guide at My PFA in order to clarify your wishes for return and risk.
7. How will it be possible to increase the pension savings by maintaining the investment risk for a longer period of time and still have more or less the same risk at the time of retirement?
When we include in our calculations that assets with higher risk also generate an expected higher return, our analyses show that we can maintain the risk for a longer period of time and thus increase the likelihood of a larger pension at the time of retirement without causing any considerable increase in the risk (which would result in a smaller pension at the time of retirement).