Members of the Danish Doctors' Pension Scheme benefited from a good investment year in 2024, with "solid" returns across a range of different risk profiles, an update from Lægernes Pension and Bank has revealed.

The update revealed that a typical return for a member in market interest in the Danish Doctors' Pension Scheme in 2024 was 13.9 per cent, for those in a medium-risk investment and with 30 years until retirement.

Those with 30 years until retirement and a higher risk appetite benefitted further, with returns of up to 15.3 per cent.

Lægernes Pension attributed the returns primarily to the fact that listed stocks delivered high returns in 2024, with large US technology stocks in particular rising "significantly" over the year.

The update also showed the returns for those with 15 years to retirement, revealing that those with medium risk achieved returns of 11.8 per cent, while those with a high risk saw returns of 13.6 per cent.

However, Lægernes Pension explained that while the pension industry typically compares investment returns for Danes with 15 years to retirement, comparisons based on a 15-year time horizon are less relevant for the doctors' pension, as the fund will only offer market rates to new – typically younger – members from 2023.

Indeed, the vast majority of members of the Danish Medical Pension – approximately 49,000 out of a total of 51,000 – are currently saving for retirement with a so-called average interest rate, where returns in good years are smoothed out so that reserves can be drawn on in years with low investment returns.

According to the update, the investment return for members with an average interest rate was 9.6 per cent in 2024.

It also noted that the Danish Medical Pension has just announced that members with an average interest rate will have their so-called pre-tax savings rate increased from 4.25 in 2024 to 5.9 per cent in 2025.

---