What is P+ Life cycle?
P+ Life cycle is a market rate pension scheme. This means that interest payment on your savings corresponds to the return on the investments of the chosen risk profile. At the same time, interest payment on your savings also depends on your risk appetite. The more risk you are willing to take, the higher pension benefits you may have.
With P+ Life cycle you decide the risk profile
The willingness to take risks is individual. Some are willing to take a high risk to gain a high profit, while others are more careful. With P+ Life cycle you decide the level of risk. In general, your savings are invested according to a middle risk level, but you can also choose a higher or lower risk level. You can change the risk profile continually - both while you are saving up, and while you receive pension benefits.
The risk follows your life cycle
With P+ Life cycle we ensure that your total risk is adjusted according to your age. In general, we place your savings in investments which ensure you a high, long-term return. And as you approach retirement, we reduce your risk - still based on your chosen risk profile.
More stability as you approach retirement
The scaling down reduces the risk of your savings being significantly affected if the financial markets develop negatively in the years before retirement, or while your are having your pension benefits paid. This way P+ Life cycle offers the opportunity of obtaining an expected high return early in your savings period, and at the same time reducing the risk for large fluctuations later on.
When can you opt for P+ Life cycle?
P+ Life cycle was launched on 1 November 2021. If you have been admitted to the pension fund after this date, you are subject to P+ Life cycle. If you have been admitted before 1 November 2021, we will contact you in e-Boks when you have the possibility of chosing the product - likely with start in 2023.
It is an important, but also a comprehensive process to give 100,000 members the opportunity of choosing a new product. We must comply with a number of regulatory requirements and have all the necessary systems in place. However, the time-consuming process also ensures that all members get sufficent advisory services to make the right decision.