As Donald Trump pushes to open US retirement plans to alternatives, Denmark offers a lesson in balancing innovation with caution. Insurance & Pension Denmark deputy director, Tom Vile Jensen, explains why pension funds should back new technologies – but only with strict oversight and a long-term view

The future of pensions will inevitably involve new technologies.

As pension investors, we recognise that innovation drives growth, creates jobs, and can generate attractive long-term returns.

That is why we already invest heavily in new platforms, digital infrastructure, and emerging industries – including unlisted companies that are developing tomorrow’s solutions.

In Denmark, our pension system is often ranked among the best in the world.

One reason is that it is built on mandatory employer contributions, professional management, and strict financial regulations that safeguard savers’ money.

Another is that we combine financial returns with societal impact, investing in areas such as infrastructure, the green transition, defence, and innovation – both at home and abroad.

New technologies are part of this picture.

We see the value in supporting digital transformation, and we are prepared to allocate capital to areas like fintech, renewable energy technologies, and the infrastructure behind new digital currencies.

But we do so with our eyes open – guided by careful risk assessment, diversification, and a long-term perspective.

In the US, Donald Trump has proposed expanding 401(k) retirement plans to include alternatives such as real estate, private equity, and other non-traditional assets.

We have seen this development for years in Danish pension funds, where alternatives (unlisted assets) now account for roughly 20 per cent of the industry’s total investments.

With good governance, professionalism and prudent oversight, such diversification can boost returns and extend the economic reach of retirement savings.

We also see promise and progress in initiatives like the GENIUS Act and the responsible development of stablecoins.

These signal that policymakers are beginning to treat digital assets seriously, aiming to match innovation with clear rules that protect investors while allowing new markets to grow.

Though we still see crypto as too unregulated and risky – for now. Retirement savings are not a lottery ticket. They are the financial foundation of people’s lives after work.

That means saying ‘yes’ to innovation – but only when it supports sustainable growth, stable returns, and the long-term security our pension savers depend on.

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