Danish pension company Topdanmark has lowered the price of the annual rate of charge for its Purpose Pension, a pension product with additional emphasis on responsible and sustainable investments.

The charge rate for the product has been reduced from up to 0.97 per cent to up to 0.82 per cent.

Topdanmark said that the 0.15 percentage point reduction would result in a member who had chosen ‘Purpose Pension Green Conversion’, and had the widest spread investment and risk profile, saving DKK 230,000.

Commenting on the figures, Topdanmark Livsforsikring CEO, Vivian Byrholt, said: “Seen over an entire pension process, from the customer starting their payment until the money is paid out later in a number of years, it is a lot of money that you now save.

“And we know that the level of administration costs is very important when customers have to choose which company should make their pension funds grow.

“We are also lowering the annual percentage rate because we want to make it even more attractive to choose a more sustainable pension solution, as pension funds are an economic muscle that can make a real difference and contribute to a positive societal development.

“Purpose Pension now has the same investment cost level as our other and more classic pension solutions.”

Topdanmark said its ambition was that 30 per cent of the total pension funds that Topdanmark Livsforsikring manages in 2025 will be invested in Purpose Pension.

It currently has around 5 per cent of its total assets under management invested in the product, which was launched in February 2020.

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