Interest rates continue to rise
“Interest rates affect your pension in the future”
How will your pension develop in 2025? How do we ensure that your pension keeps pace with rising prices?
Much depends on the interest rates that pension funds use to discount their future commitments to their present value. Most of the pension payments we need to make lie far in the future. For the pension fund, the 30-year swap rate is the most important interest rate. This rose from 2.42% to 2.76% in the second quarter, mainly due to concerns about government deficits.
Because we do not fully hedge our commitments, higher interest rates are beneficial for the funding ratio. This is because the value of future commitments falls more sharply than the losses we incur on the investments in the matching portfolio and we consequently have more money left to pay your pension in the future.
This quarterly report has been carefully prepared. The final figures for 2025 will be published in the anual report. You cannot derive any rights from this report.