Danish pension assets have surpassed DKK 5trn for the first time, almost twice the size of the country’s economy, according to new data from the National Bank.

Insurance and Pension Denmark (I&P Denmark) said the figures underline the significant importance of total pension savings for the Danish economy, with millions of Danes now contributing to what has become the world’s largest pension investments when measured against GDP.

I&P Denmark deputy director, Tom Vile Jensen, added that pension saving plays a crucial role across society.

“For the individual saver, who receives a return. For our companies, which gain access to capital. And for the economy, in the form of tax revenues that can be used for welfare,” he said.

He said that pension savings are the largest asset for many Danes, noting that the investments correspond to an average of around DKK 1,150,000 for every Dane aged 25 or over, providing a “very good level of financial security in old age”.

Approximately half of the accumulated funds consist of contributions, while the other half comes from returns. The large savings relieve pressure on public finances, as more people are able to support themselves as pensioners.

“The DKK 5,000bn in pension investments really makes a difference to the national finances and contributes to Denmark’s robust economy. Our pension savings have quite simply become a source of strength for Denmark,” Vile Jensen said.

Around 40 per cent of Danish pension assets are invested domestically, with the remainder allocated across global markets.

Indeed, I&P Denmark recently revealed that Danish pension funds now hold more investments in India than in China, a shift driven by stronger returns on Indian assets.

Indian pension holdings have ballooned in value over recent years, most recently reaching DKK 22.8bn, up from DKK 17.4bn at the end of 2023. In contrast, Chinese holdings have flatlined, standing at DKK 16.7bn this year.

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