Industriens Pension, the Danish labour market pension scheme, has reported a 7.7 per cent return for 2025, as contributions, membership and assets all continued to reach record levels despite ongoing market volatility.

According to its annual report, total investment returns amounted to DKK 18.6bn in 2025, up from DKK 14.4bn in 2024.

The 2025 performance was driven primarily by listed equity markets, with foreign equities delivering a return of 14.5 per cent over the year, despite significant fluctuations across global markets.

Contributions continued their upward trajectory, rising from DKK 12.5bn in 2024 to DKK 13.5bn in 2025, following earlier growth from DKK 11.7bn in 2023.

Meanwhile, pension disbursements reached a record DKK 11.2bn in 2025, up from DKK 9.3bn in 2024, reflecting a growing number of retirees drawing benefits.

Membership also increased further, rising by around 2,000 in 2025 to nearly 449,000, building on the previous year’s increase of 4,700 members to almost 447,000.

Industriens Pension CEO, Laila Mortensen, said that while 2025 had been “very volatile and unpredictable” in financial markets, the fund had delivered solid outcomes for members.

She noted that members’ savings increased significantly over the year, supported by positive returns across all age groups, alongside rising contributions, increasing payouts and continued high levels of member satisfaction.

The fund highlighted that it remained relatively young in maturity terms, with contributions still exceeding payouts, even as the number of pensioners receiving monthly benefits continued to grow.

New retirees were also entering retirement with higher average savings and payouts.

Meanwhile, total investment assets increased to DKK 262bn at the end of 2025, up from DKK 255bn in 2024, continuing the scheme’s steady asset growth.

Performance varied by age cohort, reflecting the scheme’s lifecycle investment approach.

Members aged 50 and under achieved a return of 9.1 per cent, while those aged around 70 saw returns of 6.1 per cent, consistent with a lower-risk strategy as retirement approaches.

Currency movements also shaped returns during the year, with the US dollar weakening by around 11 per cent against the Danish krone.

However, the impact was mitigated by the scheme’s currency hedging strategy, with approximately 85 per cent of exposure hedged.

Looking ahead, the scheme said it would continue to focus on balancing risk and return while supporting long-term growth in members’ pension savings amid ongoing market uncertainty.

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