Understand the key pension terms

Deposit interest rate

Indhold

Deposit interest rates applying in 2022

Your deposit interest rate depends on your time of admission to P+, and which pension scheme you have. The deposit interest rates are different to prevent redistribution among the members. Besides, the deposit interest rates reflect the risk related to the different schemes. In general, the deposit interest rates are determined once annually, but they may be adjusted upwards or downwards during the year due to e.g. substiantial changes on the financial markets.

At the end of May, the pension fund noted a return of -8.3 percent. As a consequence we have chosen to reduce the deposit interest rate for the majority of our members with an average interest rate from 11.5 percent to 2.5 percent as from 1 July 2022. Seen throughout the year, the deposit interest rate ends up at 7 percent for all members under P+ Regulations 2007, former JØP Regulations 2 and P+ Regulations 2011, former DIP Regulations 3.

At the same time, there are small groups of members who have a lower deposit interest rate. This applies among others to members under P+ Regulations 2019 and the members who have a scheme with a low investment risk and a guaranteed benefit.

Below you can read more about the background for determining the deposit interest rate under the different Regulations.

You can see which Regulations you are subject to on Min pension

If you belong to one of above-mentioned Regulations, your deposit interest rate for the first six months of 2022 was 11.5 percent. As from 1 July 2022 you will have a deposit interest rate of 2.5 percent. Seen throughout the year this gives you a deposit interest rate of 7 percent.

In an average rate product the deposit interest rate level is determined on basis of the previous years' returns. This means that the deposit interest rate levels out the return that P+ actually has generated over time. After several years of positive returns, the 2022 deposit interest rate is significantly higher than previous years. This is partly due to handsome returns, partly that P+ has build large enough reserves to be able to transfer them to the members' savings. And at the same time we sustain the capital buffer which is a condition for the average rate product.

You can find information about your Regulations and deposit interest rate on Min pension

If you belong to one of above-mentioned Regulations, you have kept a scheme with a guaranteed or partial guaranteed benefit.

This means that you have an investment strategy based on a high level of security in order for the pension fund to be able to honour your benefit. You have a so-called benefit guarantee which gives you a high degree of security. Your benefit is not reduced in case that the deposit interest rate is lower than what it takes to guarantee your benefit.

Accordingly, the deposit interest rate does not affect your benefit.

You can find information about your Regulations and deposit interest rate on Min pension

If you belong to one of above-mentioned Regulations, you have kept a scheme with a guaranteed or partial guaranteed benefit.

Your investment strategy is based on a high level of security in order for the pension fund to be able to honour your benefit. When your pension savings are invested with a lower risk, the return added to your savings will also be lower.

Accordingly, your deposit interest rate is 2.5 percent.

You can find information about your Regulations and deposit interest rate on Min pension

If you belong to one of above-mentioned Regulations, you have kept a scheme with a guaranteed or partial guaranteed benefit.

Your investment strategy is based on a relatively high level of risk. But at the same time we must ensure that the pension fund has the necessary capital buffer to honour your guaranteed benefit, and consequently only a small part of the return is added to your savings.

Accordingly, your deposit interest rate is 2.5 percent.

You can find information about your Regulations and deposit interest rate on Min pension

If you belong to P+ Regulations 2019, your deposit interest rate for the first six months of 2022 was 3 percent. As from 1 July 2022 you will have a deposit interest rate of 0 percent. Seen throughout the years this gives you a deposit interest rate of 1.5 percent.

Regulations 2019 is relatively new, and savings to the Regulations have only been made for a short time. Consequently, the generated return on your savings does not match the paid contributions during the year. Accordingly, the deposit interest rate is lower compared to the members who have saved up in P+ for a long number of years.

You can find information about your Regulations and deposit interest rate on Min pension

P+ Life cycle on its way
From the summer 2022 we expect to give the first existing members the possibility of choosing the new market rate product P+ Life cycle. In this product interest payments of your savings corresponds to the return that P+ generates for the chosen risk profile. You receive a letter in e-Boks when you have the possibility of choosing the new product.

You can read more about P+ Life cycle here

Deposit interest rate

Further information for P+ members