Pensioners can count on the payments from ATP

ATP’s most important task is to be able to pay the pensions that we have promised to our members. And we are keeping that promise, because ATP Livslang Pension (Lifelong Pension) is a guaranteed product.

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 basic financial security together with the state pension.

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 life expectancy 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.

Despite the investment-related fluctuations, there is no doubt about the future payments to all of our members. The investment result for 2022, which is closely correlated with significantly higher inflation and rising interest rates, does not affect this guarantee.

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.

80 per cent are invested in assets with low risk profiles

The business model that we use to invest the pension funds is designed on the principle of providing basic 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.

The mandatory payments from members are divided into so-called guarantee contributions and bonus contributions. The guarantee contribution is 80 per cent of the contribution and the bonus contribution is 20 per cent. The guarantee contribution is used to ensure that the individual members have a lifelong and guaranteed pension from the time they reach the retirement age and the bonus contribution is to contribute to ensuring the real value of the lifelong pensions over time and to cover unforeseen events such as, for example, longer life expectancies among members.

In terms of the majority of the funds - the guarantee contribution of 80 per cent - we look for low-risk assets and invest in bonds, etc. This is so that we can pay the guaranteed lifelong pensions to our members from the time they reach the retirement age.

For the second and smaller portion of the funds - the bonus contribution of 20 per cent - we invest in high-risk assets so that the returns over time can contribute to ensuring the real value of the pensions.

All in all, this distribution means that we are taking a balanced amount of risk in relation to our objective.


ATP's role in the danish pension system   |   ATP's investment strategy

Facts about ATP Livslang Pension

88 %
of Danes make contributions to ATP
18 bn (DKK)
pension payouts in 2021
5.5 million
members of ATP Livslang Pension
40 %
of Danish pensioners have no other pension income than their public pensions and ATP
75,000 DKK
maximum payouts in survivor benefits