In H1, sample contributions hit a record high.

Sampension, one of Denmark’s largest pension providers, saw record contributions in the first half of 2023. The number of members making additional voluntary contributions reached an all-time high, driven by economic factors and changing savings behaviors. Around 10,600 people contributed extra to their pensions, representing a 10.3% increase from the same period in 2022. Over the past five years, the number of members making additional contributions has surged by 41.6%.

A key factor behind this growth is the rise in wages in Denmark, which has given many individuals more disposable income. Despite inflationary pressures, Danish savers are increasingly prioritizing their retirement funds. This trend is particularly noticeable among younger contributors under the age of 35. The number of young people making extra pension contributions grew by 13.4% compared to the previous year and has doubled over the past five years. Historically, pensions were not a top priority for younger people, but growing concerns over the adequacy of public pension benefits and a desire for greater financial flexibility later in life are motivating this shift.

 

 

 

In addition to the rise in youth contributions, more women are also contributing extra to their pensions. In the first half of 2023, the number of female members making additional contributions increased by 12.9%, compared to a 7.1% rise among male contributors. This trend indicates a growing awareness of the importance of long-term financial security across different demographics.

Jørgensen lists a number of reasons for the rise, including the fact that clients are contributing more to their pensions.

The outcomes of this year’s collective bargaining talks in the public sector, which included raising contribution rates in a number of state and local governments, have also added to the rise in contributions.

“However, the primary cause of this development is the number of new corporate clients we have acquired this year. When this occurs, we typically discover that a sizable percentage of the workers switch to us from their prior pension plans. This has also been the situation this year, which has helped to explain the significant rise in donations and, consequently, the rise in total contributions, according to Jørgensen