Source: Danmarks Nationalbank
Higher net contributions for unit-linked products
Unit-linked products have become more widespread in recent years. New pension schemes are predominantly unit-linked schemes, and there have also been significant shifts from average-rate to unit-linked products. This has meant that for unit-linked products, there are overall greater contributions from the working population than payments to pensioners, while the opposite is true for average-rate products. The total net contributions since 2015 have been kr. 910 billion higher for unit-linked products than for average-rate products. This trend continued in the 1st quarter of 2025, where there were net contributions of kr. 16 billion to unit-linked products, while there were net payments of kr. 9 billion from average-rate products.
Market developments also leave their mark on pension savings
In addition to net contributions, the pension savings for unit-linked products have increased by kr. 736 billion since 2015, which primarily reflects the return on the pension companies’ investments in the financial markets. In the same period, the pension assets for average-rate products rose by only kr. 310 billion, when net contributions are excluded. Unlike unit-linked products where stocks make up a larger portion of the investments, bonds are more prominent for average-rate products.