What is P+ Life cycle?
P+ Life cycle is a market rate pension scheme. So far your savings have been added a deposit interest rate determined annually. The change to market rate means that interest payment to your savings equals the return that P+ generates from the investments of the chosen investment profile. The interest payment 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 it is your choice how much risk you want to take. As a main rule, your savings are invested according to an average risk, but you can also choose a higher or lower risk. And you can change the risk profile regularly - this also applies to pensions in payment.
Life cycle risk management
With P+ Life cycle the pension fund ensures that your total risk is adjusted according to your age. As a main rule, P+ places your savings in investments which guarantee you a high long-term return, and as you approach retirement, P+ reduces your risk - still based on your chosen risk profile.
Increased stability when approaching retirement
The gradual reduction reduces the risk of your savings being affected significantly if the financial markets develop negatively in the years before your retirement, or while you receive pension benefits. This way P+ Life cycle gives you the possibility of expecting a higher return when you are young, and at the same time the risk of experiencing large fluctuations is reduced as you approach retirement.
You receive a letter in e-Boks
P+ Life cycle was introduced on 1 November 2021. This means that members admitted as from 1 November 2021 become subject to P+ Life cycle. We expect that the existing members are offered the possibility of opting for P+ Life cycle from the summer 2022.
It is an important, but also a comprehensive process to offer 100,000 members to opt for a new product. We must comply with a number of regulatory requirements and have the necessary systems in place. However, the time consuming-process ensures that all members get sufficient advisory services before making an important decision about their pension scheme. We will contact you through e-Boks.