Denmark’s Danica Pension has revealed that it did not provide some of its customers with adequate information regarding the raised state pension, which may have resulted in some receiving a lower return on their pension savings.

For some of its customers, the increased state pension age meant the earliest payout of their pension was postponed, and Danica Pension therefore should have contacted them and advised them to consider changing their pension arrangements.

However, the pension company failed to do so due to an “oversight”, and has subsequently based the gradual reduction of risk on their investments on a date earlier than they expect them to want to retire.

As a consequence, some of its customers may have received a lower return as the risk had been reduced on an earlier date than would have been recommended.

The pension company apologised for its oversight and it has launched an investigation into exactly which of its customers were affected and how they were impacted.

In September, Danica Pension sent out 35,000 letters to current and former customers who may have been affected, informing them they were investigating and whether it had gradually reduced the risk on the investment of their pension savings too quickly and, if so, the impact of this.

Danica Pension noted that some of its customers will receive compensation due to the potential loss of returns, with the pension company setting aside DKK 250m for any potential payouts.

“Our customers do not have to do anything for now,” Danica Pension stated.

“We will contact affected customers again as soon as we complete our investigation.

“We expect to have completed the investigation by early 2024.”

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