Below you can see the pre-tax deposit interest rate for 2022 and the expectations for the years to come (expected interest rates).
|Expected interest rates (pre-tax)||
1 January 2022
|1 July 2022||2023-27||2028-32||2028→|
|Regular pension benefits under P+ Regulations 2019||3.00 %||0.00 %||3.37 %||4.74 %||5.63 %|
|Expected return (pre-tax)||0-5 years||5-10 years||10 years→|
Annuity certain, endowment policy and retirement insurance under P+ Regulations 2019:
The interest rate forecast is fixed on basis of social assumptions determined by Insurance & Pension Denmark and Finance Denmark. For regular pension benefits under P+ Regulations 2019 the actual deposit interest rate for 2021 is applied.
Previous returns and deposit interest rates
Below you can see the return which determination of the deposit interest rate is based on and the deposit interest rates applying to P+ Regulations 2019.
|Pre-tax return||14.0 %||6.6|
|Deposit interest rates P+ Regulations 2019||2021 (January-June)||2021 (July-December)||2020|
|Pre-tax deposit interest rate||1.00 %||2.00 %||2.95 %|
|After-tax deposit interest rate||0.85 %||1.69 %||2.50 %|
In November 2020, the deposit interest rate under P+ Regulations 2019 was fixed at 1 percent before pension return tax for 2021. Accordingly, the deposit interest rate was lower than in 2020. The deposit interest rate was fixed at 1 percent in order to continuously build a bonus rate and protect the finances against fluctuations. This must be seen in the light of 2020 which was characterised by COVID-19, including a withdrawal penalty applying to several interest rate groups in the pension fund. In July 2021, the deposit interest rate has been raised extraordinarily due to a return on investments of 14 percent at end-June 2021.