Denmark’s largest commercial pension company, PFA, has partnered with an equity release firm to offer the option to its customers.

The provider has partnered with Goodlife, a new startup that counts the former CEO of Arbejdernes Landsbank, Gert Jonassen, and Jesper Berg, a former director general of the Danish Financial Supervisory Authority, as owners.

Goodlife has raised DKK 200m in its first round of funding, which will be used to buy partial shares in 200 owner-occupied homes in Denmark. It plans to open new funds continuously with the ambition of investing in between 2,000 and 3,000 Danish homeowners' homes over the next five years.

Commenting on the partnership, which sees PFA refer customers to Goodlife, PFA executive vice president, Camilla Holm, said: “We see great value in helping our customers with a solution that makes it easier to access their equity in a flexible and secure way.

“With this initiative, some of our customers can have a better financial everyday life in retirement, where they can have more to live on without having to move from their homes. It is an important part of our desire to ensure our customers' financial security throughout their lives.”

She added that as the largest commercial pension company, it is important for PFA to “continue to lead the way and offer innovative solutions and partnerships”.

The Goodlife equity release model of partial sale involves pensioners and homeowners selling their homes brick by brick over a long period and in return receiving a fixed amount each month, while being able to stay in their own homes.

Goodlife founder and chairman, Morten Højberg, said: “It is a paradox that many wealthy seniors in Denmark find it difficult to live the life they want – despite often sitting on significant equity in their homes. We have one of the world's best mortgage systems, but when it comes to giving older people access to their own savings in bricks, there are some limitations.”

European Pensions has contacted PFA to confirm if it is also an investor in Goodlife.

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