Danica Traditionel is a safe choice because you know what your minimum pension payments will be on retirement. And your pension payments may be even higher than those guaranteed.
The rate of interest on your savings is set on a regular basis. We call it interest on policyholders’ savings. The rate depends on economic conditions, investments during the year and the future outlook. In good times, we usually increase the interest on policyholders’ savings, and in hard times, we have the option of lowering it.
With a Danica Traditionel scheme, you know for sure what your minimum pension payments will be as the scheme assures you of a certain guaranteed amount.
Strengthening of your pension fund or bonus
If we choose to increase your pension payouts, this can be done in two ways. One option is non-guaranteed increases, which can be rolled back at a later point. We call it a strengthening of your pension fund. The other option is guaranteed increases which cannot be rolled back. This is what we call a bonus.