Danish pension savings have recovered well since the peak of the Covid-19 crisis in markets in March, according to Insurance and Pension Denmark.

Since the turmoil in the markets, the status at the end of August for most Danes’ savings was a small positive return for 2020 so far. However, based on the Council for Return Expectations’ latest forecast assumptions, Insurance and Pension Denmark has warned that uncertainty still remains, and this should be communicated to pension savers.

Insurance and Pension Denmark CEO, Kent Damsgaard, said: “2020 with the coronavirus crisis has shown that pension savers can occasionally encounter some big bumps in the road. But it should be remembered that retirement savings are long-term savings and there is time to recover what is lost.”

In Denmark, pension companies provide savers with pension forecasts at least once a year.

“It is important to tell customers about the uncertainty. Therefore, all pension companies must tell customers not only what they will get in retirement if the investments go as expected, but also if things are going better or worse than expected,” Damsgaard added.

The pension forecasts are calculated on the back of the return expectations set by the Council on Returns Expectations. The council has today published the new expectations for the first half of 2021. For some asset classes, slightly higher returns are expected than a year ago. For other asset classes, slightly lower returns are expected. The expected uncertainty is slightly higher for most portfolios.

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