Danica Balance is a pension scheme that gives you a choice on how to invest your savings. We manage your investments based on when you plan to retire and how much risk you are willing to take. If you want additional security, you can opt for a guarantee.
Equities and other higher-risk investments make up a larger share of your savings the younger you are, and as you get older, we will as a rule reduce the number of equities in favour of bonds and other, more conservative investments. This ensures a balanced investment of your savings.
The risk is up to you
You decide how much risk you are willing to take outside the guarantee period. We usually recommend that you choose a Mix medium risk profile with the guarantee option as it provides a good balance between risk and return.
Investing in equities involves risk. The more equities, the higher the risk. But over time, equities normally offer a better return than more conservative investments. Therefore, it is important that your portfolio matches your risk profile.
Less risk over time means more security
With Danica Balance, you initially have a large proportion of equities and other higher-risk investments. Over time the proportion of equities will be reduced gradually as you grow older and move closer to retirement age, where more conservative investments will replace the equities in your investment portfolio to limit your risk.
Three ways to invest
You can choose between three different investment options, depending on how much risk you are willing to take. You can always switch to another investment option that matches your needs and requirements.
In general, we will automatically limit the risk in your portfolio as you approach retirement. However, we invest your retirement savings flexibly. This means that the proportion of higher risk investments may temporarily increase if we believe such investments to be more attractive at the time
You may also choose an investment option with a fixed risk profile.
- Mix high risk profile - Your entire savings are invested in equities until about 19 years before you expect to retire.
- Mix medium risk profile - About 87% of your savings are invested in DP Offensiv and 13% are invested in DP Mix until 27 years before you expect to retire.
- Mix low risk profile - About 67% of your savings are invested in DP Offensiv and 33% are invested in DP Mix until 29 years before you expect to retire.
Payout - retirement savings, annuity pension or life annuity schemes
When you establish a pension scheme, you also choose how you want to receive your pension payments on retirement. You may chose to receive a lump sum or regular payouts typically over a period of 10, 15 or 20 years or longer.
Your pension plan will typically be set up as a retirement savings scheme, an annuity pension scheme or a life annuity scheme.
Read more about payout options.
Know your retirement date
You must be between 18 and 75 years old to set up a Danica Balance scheme. When you set up a Danica Balance scheme, you also need to decide when you wish to retire.