Investment Profile A, B, C or D

For those of you who have started receiving payouts from your savings before April 1st

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PFA introduces new investment profiles

You have started receiving payouts from your pension plan. If your savings are in Investment Profile B, C or D, they will be moved to the pension product PFA Flexible (previously Optional) on 1 April 2025, where the investment of your savings will continue unchanged. The move will have no impact on the size of your payouts as at 1 January 2025, but it will give you some new opportunities to invest your savings. If your savings are in Investment Profile A, all that happens is that your investment profile changes its name to “Profile Cautious”.

The reason for the move to PFA Flexible is that we have developed three new investment profiles: Profile Low, Medium and High, which from 1 April 2025 will replace our current Investment Profile B, C and D. The new profiles generally have a higher proportion of shares and similar investments. This change will typically provide higher expected returns but also greater fluctuations in returns and thus in pension savings and payouts, which we have assessed may be inappropriate once you have started receiving payouts. Therefore, we will be moving your savings to PFA Flexible, where you will have the same proportion of shares, etc. as today. 

Please note that special rules apply if:

  • Your savings are placed in Investment Profile A
  • You have payout protection cover attached to your savings
  • You receive a partial payout from your savings

You can read more about what applies in these cases below. 

If you have Profile B, C or D, your savings will be moved to PFA Flexible

Your proportion of shares and corresponding investments depends on your investment profile. When you switch to PFA Flexible, you will retain the proportion that you have today:

 

 

Investment Profile B:

about 20 per cent in shares and equivalent investments (High-risk fund)

 

Investment Profile C:

about 30 per cent in shares and equivalent investments (High-risk fund)

 

Investment Profile D:

about 40 per cent in shares and equivalent investments (High-risk fund)

 

This distribution will be the same throughout the payout period unless you change it yourself. 

PFA Flexible includes the same underlying funds that you know from your current investment profile: The High-risk fund, which contains shares and similar investments and the Low-risk fund, which contains bonds and similar investments. These funds will also be used for the new profiles.

At My PFA (mitpfa.dk) and in the My PFA app, you can view and change the distribution in PFA Flexible. 

Where can I see my payouts for 2025?

Your payouts for 2025 will be determined in November 2024. There are several factors that can affect the size of your future payouts. For example, they depend on the return for 2024, expectations for future returns and how many years remain of your pension payout. If you receive payouts from a life pension, they will also depend on the life expectancy of PFA's customers.

Around 1 December 2024, you can see your upcoming payouts for 2025 at My PFA (mitpfa.dk):
  1. Log in at My PFA (mitpfa.dk) with MitID
  2. Select Your Savings and then Payout plan
  3. Use your mouse to scroll down to the bottom of the page to the 'Agreed payouts' area 
  4. Click on the 'See next year's payouts' bar. 
     




Learn more about the changes

Watch the video with PFA’s private economist, Camilla Schjølin Poulsen, who talks about the background for the new profiles and the most important changes.

 

What happens to my savings if:

I receive a payout from savings in Investment Profile A?

Your savings will continue as before
Your investment profile will change its name to Profile Cautious on 1 April 2025 but will otherwise continue unchanged. The name change will take place in connection with the launch of the new investment profiles: Profiles Low, Medium and High. 

Your savings will continue unchanged in Investment Profile A/Profile Cautious, but we will stop offering the profile to other customers on 1 April 2025 as we estimate the expected return is too low - and especially for customers with a long time to go until retirement. 

If you are considering changing your investment profile, you can get a recommendation for choosing a profile by reading PFA's Investment Guide, which can be found at My PFA (mitpfa.dk) or in the My PFA app. Please note that Profile A/Profile Cautious is not included in the investment guide recommendations, as PFA no longer recommends the profile. 

If you choose to change your investment profile before 1 April 2025, you will be automatically transferred to PFA Flexible, where you will receive the same proportion of shares, etc. that you have in the selected profile on 31 March 2025. You will not have the option to choose Profile Cautious after 1 April 2025 if you have chosen to switch to another investment profile. 

Read more about Profile Cautious

I receive a partial payout from my pension plan?

Your savings will be moved to PFA Flexible
If you have Investment Profile B, C or D and have chosen to receive a partial payout from your pension plan, all of your savings will be moved to the pension product PFA Flexible. The move will have no bearing on the size of your payouts as at 1 January 2025.

The reason for the move is that the new profiles generally have a higher proportion of shares and similar investments. This will typically provide higher expected returns, but also greater fluctuations in returns and thus in pension savings and payouts, which we have assessed may be inappropriate when your savings have already started being paid out. Therefore, we will move your savings to PFA Flexible, where the investment of your savings will continue with pretty much the same risk as today.

If your savings are placed in Investment Profile A, it will not be moved to PFA Flexible, but will continue as before. The only change is that Investment Profile A will change its name to Profile Cautious from 1 April 2025. 

I receive a payout from my savings in Investment Profile A and have payout protection cover?

Your savings will remain unchanged
Your investment profile will change its name to Profile Cautious on 1 April 2025, but both the investment of savings and payout protection cover will continue unchanged.

I receive a payout from my savings in Investment Profile B and have payout protection cover?

You will get a new investment profile, but the majority of your savings will continue as today 
Your savings will be moved from Investment Profile B to the new Profile Low on 1 April 2025, but for you the move will only have very limited significance as you have payout protection cover attached to your savings. This means that most of it will be invested in some special investment funds with extra low risk. You will retain these investments in connection with the switch to Profile Low. In this way, you retain the bottom limit under your payouts which the payout protection cover ensures. 

On the remaining part of your savings, the consequences of the move to Profile Low will depend on how long you have received payouts from your savings. If you have received payouts for less than 10 years, the switch will typically mean that you will get a slightly larger proportion of shares and similar investments than you have today. A higher proportion of shares is expected to yield higher returns in the long run, but also greater fluctuations, especially in the short term. If you have received payouts for more than 10 years, you will typically get a slightly smaller proportion of shares, etc. in your profile. This is due to the fact that the proportion of shares, etc. in Profile Low is continuously reduced, even after you have retired (however, the gradual reduction stops 20 years after payouts have begun). 

As mentioned, these are small changes that only apply to a small part of your savings. Therefore, we do not expect that they will have a significant impact on your payouts and, as mentioned, you will retain the payout protection cover that you have today.
 
Read more about Profile Low

I receive a partial payout from my savings in Investment Profile B and have payout protection cover

You will get a new investment profile but you will keep your payout protection cover
Your savings will be moved from Investment Profile B to Profile Low on 1 April 2025. Your payout protection cover will continue unchanged, and you will retain the minimum limit for your payouts, which payout protection cover generally ensures.

What happens to the part of your savings from which you receive a payout? 
This portion of your pension savings will be moved from Investment Profile B to the new Profile Low. The move will have only limited significance as the majority of your savings are placed in special investment funds with extra low risk due to payout protection cover and this will continue unchanged upon the switch to Profile Low. 

The remaining portion of the savings will be primarily placed in shares and similar investments. We do not expect this to change significantly as there are only slight differences between your current Investment Profile B and your new Profile Low for this part of your savings when you have already started receiving payouts.

What happens to the other part of your savings that you are not yet receiving payouts from?
This part of your savings will also be moved to Profile Low, and you will continue to have payout protection cover. The payout protection cover means that your savings for the last 10 years before the agreed payout date are gradually moved to some extra low-risk investment funds. The impact of the changes will depend on the length of time until the scheduled payout date. The less time there is left, the greater the part of the savings that will be placed in the special investment funds with extra low risk will be and the less the savings will be affected by the move. If there is a long time until the payout date, with the move to Profile Low you will typically get an increased proportion of shares and corresponding investments in this part of your savings. This is expected to give you a slightly larger return, but also greater fluctuations in the return - and thus in your savings and your payouts.

We intensify our climate focus in PFA Climate Plus

If you have savings in PFA Climate Plus, the changes to your investment profile will also apply to this part of your savings. In addition, we will strengthen the climate focus of PFA Climate Plus from 1 April 2025 so that we not only exclude oil, coal and gas companies, but also companies with strong ties to the fossil fuel sector.

As a consequence of the increased climate focus, the return in PFA Climate Plus is expected to be slightly lower and have slightly higher fluctuations than the return in the other savings with PFA as we cannot spread out the investments in the same way. We have therefore adjusted the terms and conditions of pension for PFA Climate Plus so that this is clearly specified.

You can take the investment guide at My PFA to get a recommendation for choosing an investment profile. In addition, based on your position on climate and risk, you can also get a recommendation for how large a proportion of your savings should be invested in PFA Climate Plus.

Sign up for a webinar

Join the webinar and learn more about the changes to PFA’s investment profiles and PFA Climate Plus

If you would like to hear more about PFA Flexible and the new investment profiles, you have the opportunity to attend a webinar where you can learn more about the background for the changes and what they mean for you.

 

 

Learn more about the changes to PFA's investment profiles


Friday 28 February 2025 09.00 - 10.00
 

Learn more about the changes to PFA Climate Plus


Thursday 20 February 2025 09.00 - 10.00

 

Once you have signed up, you will receive a link to a recording of the webinar so that you can watch it if you are unable to attend.

Are you considering switching to one of the new investment profiles?

In general, changes to your investment profile from 1 April 2025 should not give cause for you to change your current investment choices. 

If you want to increase or reduce the risk with which your savings are invested from 1 April 2025, you have the option to change the proportion of shares and corresponding investments (High-risk fund) in PFA Flexible at My PFA (mitpfa.dk). You also have the option to switch to one of the new investment profiles, which typically have higher investment risk, but where the distribution of shares and bonds, etc. will be regularly adjusted so that investment risk will decrease with age — even after retirement. 

If you are considering this, you can get help from the Investment Guide at My PFA (mitpfa.dk), where you can also change your investment profile. A change in the investment of your savings will not affect your payouts as at 1 January 2025, and we therefore recommend that you wait to take the guide until after 1 April 2025 when it will be updated with the new profiles and where you will have the opportunity to choose whether you want to gradually reduce your risk after the payouts begin. 

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If you choose to switch to Investment Profiles B-D before 1 April 2025, you will still be automatically transferred to PFA Flexible on 1 April 2025, where you will get the same proportion of shares and similar investments as in the selected profile. After 1 April 2025, it will not be possible to select Investment Profile A and Investment Profile A/Profile Cautious will therefore not be included in the Investment Guide's recommendations. 

If you currently have Investment Profiles A or B with payout protection cover and are considering switching to a profile without payout protection cover, we recommend that you contact us for advice. 

Read more about the new investment profiles if you are considering switching

Investment Profile B to Profile Low
Investment Profile C to Profile Medium
Investment Profile D to Profile High

Please note that changes to your investment choice will have an impact on the investment of your savings and thus the size of your subsequent payouts.
To avoid any misunderstanding, it should be mentioned that the size of your payouts each year can both increase and decrease regardless of whether you change your investment choice.

Get answers to frequently asked questions

1. I am happy with my current profile. Can I keep it?

No, if you have Investment Profile B, C or D on 31 March 2025, your savings will automatically be moved to PFA Flexible with the following distributions on 1 April 2025:

Current Investment Profile B: Approximately 20 per cent in shares and equivalent investments and about 80 per cent in bonds and equivalent investments. 
Current Investment Profile C: Approximately 30 per cent in shares and equivalent investments and about 70 per cent in bonds and equivalent investments. 
Current Investment Profile D: Approximately 40 per cent in shares and equivalent investments and about 60 per cent in bonds and equivalent investments. 

This distribution will be the same throughout the payout period unless you change it yourself. PFA Flexible includes the same underlying funds that you know from your current investment profile: The High-risk fund, which contains shares and similar investments and the Low-risk fund, which contains bonds and similar investments. 

If you have Investment Profile A, then it will continue unchanged. However, the profile will change its name to Profile Cautious. This also applies if you have payout protection cover for your savings. If you have Investment Profile B with payout protection cover, your savings will be moved to Profile Low. 

However, if you receive partial payouts from your pension plan, the proportion of shares and bonds, etc. may change when you move to PFA Flexible on 1 April 2025.

2. What does the change mean for my payouts?

The move will have no bearing on the size of your payouts as at 1 January 2025.

If you have Investment Profile A, B, C or D 
The move will have no bearing on the size of your payouts. 

The investment of your savings will continue unchanged and you will retain your current distribution between shares and equivalent investments and bonds and equivalent investments. This distribution will be the same throughout the payout period unless you change it yourself. However, if you have PFA Climate Plus, the slightly lower return expectations could affect your savings and thus your payouts. 

The size of your payouts can increase and decrease each year and this also applies after 1 April 2025. The size of your payouts depends not only on the return, but also on developments in life expectancy, costs, societal conditions and taxes.

If you have Investment Profile B with payout protection cover or if you receive partial payouts from your pension plan as at 1 January 2025
The move to the new Profile Low or PFA Flexible is expected to have no, or minimal, impact on your payouts when they are first adjusted after 1 April 2025. The first adjustment of payouts after 1 April 2025 is expected to apply as at 1 January 2026.

The expectation is that there will be no or only a minimal impact on your payouts, as the investment of your savings will continue virtually unchanged after 1 April 2025 and with no significant changes to the proportion of assets, etc. and bonds, etc. in your savings. If you have PFA Climate Plus, the slightly lower return expectations in PFA Climate Plus can, on their own, affect your savings and thus also your payouts. 

The size of your payouts can increase and decrease each year and this also applies after 1 April 2025. The size of your payouts depends not only on the return, but also on developments in life expectancy, costs, societal conditions and taxes.

3. Can I change my profile?

Yes, you can change your investment profile. If you are unsure if you have the right investment profile, you can get help from the Investment Guide at My PFA (mitpfa.dk). 

A change in the investment of your savings will not affect your payouts for 2025, and we therefore recommend that you wait to take the guide until after 1 April 2025 when it will be updated with the new profiles and where you will have the opportunity to choose whether you want to gradually reduce your risk after the payouts begin. 

If you choose to change your profile before 1 April 2025, you will still be automatically transferred to PFA Flexible on 1 April 2025, where you will get the same proportion of shares and corresponding investments as in the selected profile. After 1 April 2025, it will not be possible to select Investment Profile A and Investment Profile A/Profile Cautious will therefore not be included in the Investment Guide's recommendations. 

Be aware that changes to your investment choice will have an impact on the investment of your savings and thus the size of your future payouts. The size of your payouts can increase and decrease each year and this also applies after 1 April 2025. The size of your payouts depends not only on the return, but also on developments in life expectancy, costs, societal conditions and taxes, among other things.

4. Will the change cost me anything?

No, the change itself does not cost anything. However, the investment costs deducted from the return may change as a result of the restructuring of your investments and are generally higher for shares and similar investments. 

The investment costs for 2025 have not yet been determined, so we cannot provide the expected annual percentage rate (APR) for your investment profile at this time. You can always see the expected cost rates on Costs and prices and your actual costs at My PFA

5. When will the changes happen? And how is it going to happen?

The changes will take effect on 1 April 2025 when we will be moving your savings to PFA Flexible. You can always see your current allocation between shares and similar investments (High-risk funds) and bonds and similar investments (Low-risk funds) at My PFA. You will find it under Your Savings (‘Din Opsparing’) and then Investment Concepts (‘Investeringskoncepter’). 

If you have your savings in Investment Profile A, the only change is that the profile will change its name to Profile Cautious on 1 April 2025. If you have Investment Profile B with payout protection cover, your savings will be moved to Profile Low on 1 April 2025.

6. Why are my savings being moved to PFA Flexible?

The reason for the move is that we have developed three new investment profiles: Profile Low, Medium and High, which from 1 April 2025 will replace our current Investment Profile B, C and D. The new profiles generally have a higher proportion of shares and similar investments. This will typically provide a higher expected return, but also greater fluctuations in returns and thus in pension savings and payouts, which we have assessed may be inappropriate for those who have started receiving full or partial payouts. We will therefore move your savings to PFA Flexible with the same proportion of shares, etc. that you have today and the investment of your savings can therefore continue as today.

If you currently have Investment Profile A, then it will continue unchanged. However, the profile will change its name to Profile Cautious. If you have Investment Profile B with payout protection cover, your savings will be moved to Profile Low on 1 April 2025. 

7. Why can I not choose one of the new profiles before 1 April 2025?

The new profiles will only be ready on 1 April 2025.

8. I have not heard from PFA about the change yet. Does this mean that my savings will not be changed?

No, we send information to our customers during the period from November 2024 to February 2025. If you currently have your savings in PFA’s market-rate product PFA Plus and have one of the current investment profiles A, B, C or D, you will hear from us before the changes take effect on 1 April 2025. 

If you currently have Investment Profile A, then your savings will continue unchanged. However, the profile will change its name to Profile Cautious. If you currently have one of the investment concepts PFA Optional (PFA Flexible from 1 April 2025) or You Invest, there will be no changes to your savings either. If you have PFA Climate Plus, the slightly lower return expectations in PFA Climate Plus could affect your savings and thus also your payouts. 

9. Do I have to do anything myself?

No, the changes in the investment profiles and in PFA Climate Plus will occur automatically as at 1 April 2025. 

If you have Investment Profile B, C or D, your savings will be moved to PFA Flexible. If you have Investment Profile A, then it will continue unchanged. However, the profile will change its name to Profile Cautious. This also applies if you have payout protection cover for your savings. If you have Investment Profile B with payout protection cover, your savings will be moved to Profile Low with payout protection cover.

In general, the changes should not give cause for you to change your investment profile and your investment risk. However, it is always a good idea to contact PFA’s Advisory Services Centre if you are in doubt about whether you have the right investment profile. 

10. Where can I see my current investment profile?

You can always see your current investment profile at My PFA. Simply select Your Savings (‘Din Opsparing’) and then Investment Overview (‘Investeringsoversigt’).

11. When can I see the change at My PFA?

You can see the changes at My PFA from 1 April 2025. You can view your profile under Your Savings (‘Din Opsparing’) — Investment Overview (‘Investeringsoversigt’).

During April 2025, you will also receive a new pension certificate and new terms and conditions of pension at My PFA (mitpfa.dk).

12. What does it mean for me that PFA is adjusting the rules on how annual payouts are specified?

The adjustment means that the PFA will be able to determine the calculation method more flexibly in the future, for example, without using a payout rate as is the case today. The adjustment will not affect your payouts as at 1 April 2025 when the new investment profiles take effect.

13. Are you considering one of the new profiles in which the proportion of shares - as something new - will be gradually reduced into the retirement age?

If you are considering whether one of the new investment profiles is something for you, then you can get help from the Investment Guide at My PFA (mitpfa.dk). However, if you have payout protection cover attached to your savings, you are recommended to contact our Advisory Services Centre instead.

A change in the investment of your savings will not affect your payouts for 2025, and we recommend that you wait to take the Guide until after 1 April 2025 when it will be updated with the new profiles and you will have the opportunity to choose whether you want to gradually reduce your risk after the payouts begin. 

If you choose to change your profile before 1 April 2025, you will still be automatically transferred to PFA Flexible on 1 April 2025 where you will get the same proportion of shares and corresponding investments as in the selected profile

After 1 April 2025, it will not be possible to select Investment Profile A and Investment Profile A/Profile Cautious will therefore not be included in the Investment Guide's recommendations. 

14. My letter does not match my investment profile. What do I do?

You do not have to do anything. If the profile specified in the letter does not match your investment profile, it may be because you have changed profile since we prepared the letter. You can always see your current profile on My PFA under Your Savings (‘Din Opsparing’) and then Investment Overview (‘Investeringsoversigt’). The change is based on the selected profile as at 31 March 2025.  

15. What other investment options do I have at PFA?

At PFA, we offer 3 different investment concepts in our market rate product, PFA Plus. You also have the option to choose PFA Climate Plus. Learn more about the investment concepts here.

16. Can I take the investment guide now, or do I have to wait until April 1, 2025?

You can take the Investment Guide now, but if you want to take the Investment Guide because you are unsure if you have the right investment profile, we recommend that you wait to take the guide until after 1 April 2025. This is when the guide will be updated with the new profiles and you will have the opportunity to choose whether you want to gradually reduce your risk after the payouts begin. The changes to our investment profiles will only take effect on 1 April 2025 and will therefore not affect your payouts as at 1 January 2025. 

After 1 April 2025, it will not be possible to select Investment Profile A and Investment Profile A/Profile Cautious will therefore not be included in the Investment Guide's recommendations. Similarly, the guide will not include a recommendation to attach payout protection cover as PFA no longer recommends this. 

If you have payout protection cover attached to your investment profile and are considering changing your investment profile, we recommend that you contact our Advisory Services Centre. The same applies if you currently receive partial payouts from your pension plan.


If you have any questions or need advice, feel free to call us at +45 70 80 82 47

See the difference between your current and future terms and conditions

The changes to the investment profiles and PFA Climate Plus entail an adjustment in your terms and conditions of pension. Here you can see an overview showing the difference between the current and future terms and conditions. From 1 April 2025, the new terms and conditions of pension will also be available at mitpfa.dk or in the My PFA app where you will also get a new pension summary.