Danish pension savers are seeing positive returns on their pension investments, particularly from global equities, according to Insurance and Pension Denmark (I&P Denmark).

The association said the second quarter of the year showed optimism in the financial markets, and this has benefited pension customers in the form of better returns. It is primarily global equities that have secured the positive returns for pension savers. Despite the positive returns, losses from 2022 have not yet been recovered.

During the second quarter returns for global equities (developed markets) stood at 4.5 per cent for average interest pensions. For market interest pensions the return on global equities (developed markets) was 5.5 per cent. This has added to the success of the first quarter when the returns were 7.5 per cent and 5.8 per cent, respectively.

Returns on global equities stood out above all other asset classes, which made either losses or limited returns in the second quarter.

“The new figures for the return on Danes' pensions show that the first six months of the year have gone better than feared. In the spring, there were several bank crashes in both the USA and Switzerland, but fortunately this has not spread.
“The pension industry follows the risk picture very closely, and we can look forward to nice, positive returns on shares,” I&P Demark deputy director, Tom Vile Jensen, said.

“The recession that everyone fears has fortunately not materialised so far. Especially in the USA and Denmark, employment is booming. But global uncertainty remains high, and headwinds can quickly arise in the financial markets. Inflation is still haunting, which most recently also led to further interest rate increases from the European Central Bank,” Vile Jensen said.

Total Danish pension assets are approximately valued at DKK 4,000bn.

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