Members of Danish pension fund, AkademikerPension, saw pre-tax returns of 8.2 per cent in 2020, corresponding to DKK 7.65bn.

The fund’s returns recovered from a low of -13 per cent amid Covid-driven market volatility in the spring.

AkademikerPension director, Jens Munch Holst, described the 8.2 per cent returns as “completely wild”.

“This means that our members' pension savings are once again growing nicely,” he added.

“Critical voices may think that returns should be higher when looking at stock market price increases since the downturn in March. 

“But as a responsible pension fund, we need to spread the risk and not just run the maximum risk for members' money by investing all funds in stocks. So against that background, the return is very nice.”

Following this year’s returns, AkademikerPension members have received an average return of just under 9 per cent since 2009.

Additionally, the pension fund’s members paid a record amount of extra contributions in 2020.

Extra contributions totalled DKK 755m, 27 per cent higher than the DKK 595m that was paid in extra in 2019.

Holst attributed the rise to increased communications with members, alongside people being paid frozen holiday pay, banks charging negative interests rates and stock market opportunities.

“It's something we're really happy about in many ways. We see it as a sign that our members have confidence that we can do something good with their money,” he concluded.

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