How we invest your savings

We do this to protect your savings against sudden falls very close to your retirement age. So the older you get, the lower the proportion of your savings that is invested in shares and other risky investments. However, there are no guarantees, and the prices of shares and bonds go up and down.

When you invest in shares, you put money into a company. If the company you have invested in performs worse than expected, the value of the company’s share falls. In other words, the share is worth less than when you bought it.

Whether companies are doing well or badly is extremely unpredictable, which is why money can be lost quickly. On the other hand, money can be earned quickly when things go well.

PensionDanmark always invests your savings in a mix of shares and bonds so that the risk of loss is not too great. This means you have a good chance of making a profit from shares and at the same time you are guaranteed a more stable return from bonds.

All pension funds use a risk figure. This figure tells you how great the risk is that your savings will go up or down over the course of a year.

You can compare risks across pension funds at faktaomopension.dk/risiko. This website collects information about risk across the individual pension funds.

When we invest your savings, we focus heavily on diversifying our investments to ensure there is less risk of losing money. We will not compromise your security simply to get a slightly higher return.

Your savings will be invested based on your age. If you are a long way from retirement, a large proportion of the money is invested in shares. This can produce a higher return, but there is also a greater risk.

As you get older, we invest more and more of your savings in stable investments such as bonds, real estate and infrastructure (e.g. wind turbines, new roads and bridges). This puts you in a better position to predict how your finances will look when you retire.

PensionDanmark ensures a responsible and sustainable approach to investing your money in several ways. For instance, we have clear goal for how the companies we invest in should reduce their CO2 emissions. We also regularly evaluate these companies and look at aspects such as their approach to climate impact, the environment, human rights and working conditions.

PensionDanmark has also chosen not to invest in companies that produce cluster bombs, tobacco or use coal to produce electricity. 

Once a year, PensionDanmark checks its guidelines and assesses whether anything needs to be changed. Read more about PensionDanmark’s guidelines for responsible investments

We also have an exclusion list of companies in which we do not invest. We update the PensionDanmark exclusion list regularly