Pensioners can count on the payments from ATP

ATP’s members are almost all Danes. Every month, members and their employer pay an amount to their ATP Livslang Pension (Lifelong Pension), which we manage and invest.

ATP Livslang Pension (Lifelong Pension) is a guaranteed pension product and members are guaranteed a lifelong and monthly payment from ATP for as long as they live.

Lifetime guarantees and a collective scheme

As an ATP member, you are guaranteed to have the ATP Livslang Pension (Lifelong Pension) paid out from the time you reach the state retirement age to when you die. This lifetime guarantee, which enters into force already from the first contribution, is an essential part of the product, not least because many people in Denmark are living longer and longer.

We make every effort to provide stable pensions and returns that over time can contribute to ensuring the real value of the lifelong pensions and create financial security together with the state pension.

ATP’s investment strategy means that members will always get the pensions that we have guaranteed - both when markets go up or down.

This is a significant difference from market rate products, where the individual member assumes both the life expectancy risk and the investment risk. ATP is a collective scheme where the members (virtually everyone in Denmark) cover each other.

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On average, people in Denmark are expected to be retired for 20 years. If you receive ATP Livslang Pension (Lifelong Pension) for 20 years, the first 4 years of your retirement will be financed by your own contributions. The last 16 years come from ATP’s returns and the common pool

Guaranteed pensions regardless of financial fluctuations

For members, however, the critical factor is not whether ATP’s assets are growing, decreasing or remaining stable. The critical factor is that our investment strategy ensures that we always have enough funds to

pay what we have guaranteed our members, regardless of which direction interest rates move in. And that is precisely what we ensure is possible by hedging our risks so that fluctuations in interest rates do not impact our customers’ pensions either now or in the future.

The business model that we use to invest the pension funds is designed on the principle of providing financial security via lifelong guaranteed pensions that we make every effort to ensure the real value of over time.

All of ATP’s assets belong to our member, and therefore we have no equity of our own. Read more about ATP’s investment strategy

Low costs with ATP Livslang Pension (Lifelong Pension)

Because the ATP pension is a simple product with no options and covers almost all people in Denmark, the costs are very low: APR (annual costs) of 0.30 per cent in 2023

The low costs mean that you get a lot of pension for your saved up funds.

ATP’s bonus policy

ATP’s ability to increase pensions depends on the bonus capacity. The bonus capacity expresses the relationship between ATP’s bonus potential - the free reserves - and ATP’s liabilities to its members and it provides a good picture of the health of ATP. The higher the bonus capacity, the more room for manoeuvre ATP has to increase pensions Read more about the bonus capacity