The long-term strengthening of members' pension savings continued in 2023, as shown in PensionDanmark's annual report, which has now been published.
With an investment return of DKK 23 billion, there was further return on members' savings. The long-term strengthening of pension savings was reflected in the average annual payouts to new pensioners, which increased to DKK 64,700 from DKK 59,600 in 2022.
The development reflects the long-term maturation of labour-market pensions, which is expected to result in annual payouts to new pensioners in 2030 being 250 percent higher than in 2010.
"2023 was both a historic and positive chapter in PensionDanmark's history. We completed a successful management transition and secured an additional contribution to the solid long-term returns, which have averaged between 5 and 8 percent per year across our age pools over the past five years despite economic uncertainty and significant fluctuations in inflation, energy prices, interest rates, and stock prices," says CEO Claus Stampe.
The development in 2023 also contributed to PensionDanmark being able to increase the monthly payouts to the group of retired members by an average of 5 percent at the beginning of 2024.
More health treatments and continuing education programs
2023 also saw increased activity in PensionDanmark's healthcare programme, which includes physiotherapy, chiropractic, prompt diagnosis, and online consultation with doctors and psychologists. The number of treatments increased to 565,200, up 7 percent from the previous year.
There was also progress in the collectively agreed competence funds supporting competency development that PensionDanmark manages. The number of completed programs increased by 18 percent to 46,900.
DKK 3 billion more in green investments
The long-term focus on green investments is also reflected in the key figures for 2023. At the end of the year, the volume of PensionDanmark's green investments had grown to DKK 38.0 billion from DKK 34.9 billion a year earlier.
The development can also be seen in the construction of new renewable energy capacity since 2021, which is now at 338 megawatts. This means that 42 percent of PensionDanmark’s target of 800 megawatts of new capacity by 2030 has already been achieved.
Overall, PensionDanmark's investments in green energy produced approximately 2,000 gigawatt-hours of electricity in 2023. This is equivalent to the electricity consumption of 1.25 million Danish citizens, which is 50 percent more than PensionDanmark's 826,700 members.
