How to invest your savings?
The investment guide gives you an idea of how to invest your pension savings, depending on how much investment risk you are prepared to take. You can use the guide no matter whether you are already a customer with Danica Pension and regardless of age - as long as you have not retired.
What can you use the guide for?
The guide offers recommendation on how to invest your pension savings. Our recommendation is based on the information you have provided about your financial situation, your age and your answers to questions concerning investment risk, and the recommendation may result in two different products - either Danica Balance or Danica Select.
You can use our investment advice as a platform for a dialogue with us about how to invest your savings. If you are interested, simply contact us and we can then advise you and tell you about our other products that may be of relevance to you. If you are already a customer with us, you can for instance use the guide to check whether there are reasons to reconsider your current investment option.
Call us or request a phone call on the last page - then we can offer you advice on the basis of the recommendation you have received with the guide.
Technical details – how we arrive at our recommendation
The calculations are net of investment costs and a 15.3% tax on pension investment returns.
We have based our calculations on the following assumptions - in compliance with the Danish Insurance Association's economic assumptions for pension projections:
- Return on bonds before investment costs: four per cent a year
- Return on shares before investment costs: seven per cent a year
- Rate of inflation: two per cent a year.
All amount have been discounted into present-value Danish kroner, adjusted for inflation.
The outcomes are determined on the basis of a 95 per cent confidence interval.
Of your pension contributions, it is assumed that 25 per cent - of the first 12 per cent of your contributions - go towards payment for insurance cover and costs. In respect of the part of your pension contributions that exceeds 12 per cent, we assume that four per cent go towards costs. In the calculations, we have also taken into account that pension contributions are subject to eight per cent labour market contribution (employers tax).
The actual trend in pension savings will be determined by the actual rate of return, the actual inflation rate, future risk factors and any relevant legislation in force from time to time.
Danica Pension accepts no liability for any loss resulting from the risk that your savings may develop differently from the assumptions.