The Danish Doctors’ Pension Fund (Lægernes Pension) reported a decline in investment performance in 2025, with returns falling from DKK 10.4bn in 2024 to DKK 7.5bn, amid a more volatile geopolitical and market environment.

The fund said the lower result reflected a year marked by geopolitical tensions, financial market fluctuations and uncertainty linked to US trade policy, in contrast to the stronger conditions seen in 2024 when returns reached 9.5 per cent.

In 2025, the typical member with an average interest rate achieved a return of 6.5 per cent, while those with market interest rate products saw returns of 9.8 per cent.

This compares with stronger outcomes in 2024, when members with long investment horizons and medium risk in market rate schemes saw returns of 13.9 per cent.

Despite the fall in headline returns, the scheme maintained solid underlying performance and continued to build financial resilience.

For the majority of members - around four in five - returns in average interest rate schemes reached 5.9 per cent before tax in 2025, an increase from the 4.25 per cent credited in 2024.

As returns exceeded the imputed rate, the pension fund increased its collective bonus potential from DKK 14.4bn to DKK 15.7bn, strengthening buffers to support members in periods of weaker investment performance.

The fund also continued to grow over the year.

Membership rose to nearly 53,000 in 2025, up from just under 52,000 in 2024, while contributions increased by 9.4 per cent to DKK 3.8bn, building on the near 5 per cent rise recorded the previous year.

At the same time, pension outflows continued to rise as more members retired, with payments totalling DKK 3.7bn in 2025, following a near 9 per cent increase in 2024.

Alongside financial performance, the fund implemented significant scheme changes aimed at improving member outcomes.

Around 30,000 members who joined before 2023 were moved into a revised structure, Ny TraditionelPension, offering greater flexibility, improved standard insurance coverage and enhanced ability to tailor benefits.

While these members will continue in average interest rate arrangements, the fund confirmed that from 2026, they will have the option to switch individually to market interest rate products, which have been the default for new members since 2023.

Looking ahead, Lægernes Pension noted it expected results in 2026 to remain broadly in line with 2025, although it warned that risks were increasingly driven by geopolitical and institutional factors rather than traditional economic cycles.

Meanwhile, the interest rate for members in average interest rate schemes has been maintained at 5.9 per cent before tax for 2026.

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