PensionDanmark made an investment return of DKK 23bn in 2023, it has reported.

The pension company stated that the long-term strengthening of pension savings was reflected in the average annual payments to new pensioners, which rose to DKK 64,700 up from DKK 59,600 in 2022.

The development reflects the long-term maturation of labour market pensions, which is expected to mean that the annual payments to new pensioners in 2030 will have increased by 250 percent compared to 2010.

The development in 2023 also contributed to PensionDanmark being able to raise the monthly payments to the group of retired members by an average of 5 percent at the start of 2024.

"2023 was both a historic and a positive chapter in PensionDanmark's history. We completed a successful management transition and secured a further contribution to the solid long-term returns of between 5 and 8 per cent per annum across our age pools for the past five years, despite recent years being characterised by economic uncertainty and significant fluctuations in inflation, energy prices, interest rates and share prices," PensionDanmark CEO, Claus Stampe, said.

In addition, its report said that by the end of the year, the extent of PensionDanmark's green investments grew to DKK 38bn up from DKK 34.9bn one year before.

The development can also be seen in the build-up of new renewable energy capacity since 2021, which is up to 338 megawatts, meaning that 42 per cent of the target of 800 megawatts of new capacity by 2030 has already been met.

Overall, PensionDanmark's investments in green energy delivered a power production of approximately 2,000 gigawatt hours in 2023. This corresponds to the power consumption of 1.25 million Danes, which is 50 per cent more than PensionDanmark's 826,700 members.

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