Pension savers experienced a significant rebound in May, marking one of the best months for returns in the last decade. This surge has considerably recovered losses incurred earlier in the year.

According to Danica’s chief economist, Mads Moberg Reumert, the positive returns were primarily driven by American stocks. Relief regarding the trade war and strong financial statements from major companies have boosted share values.

Turbulence created by the trade war initially led many pension customers to consider adjusting their risk profiles. Danica’s advice to customers was to maintain their original risk profiles, which has proven beneficial as markets recovered.

While uncertainty surrounding the trade war remains, Danica advises that pension savings should be viewed as a long-term investment capable of withstanding market fluctuations. The company has continuously adjusted its portfolios to balance risk and expected returns, recently increasing its holding of US shares while still recognizing the value of European shares.

The strong May performance has significantly improved the overall outlook for pension investments, following a challenging start to the year. For example, a Danica pension saver with a high-risk profile and 30 years until retirement saw a 5 percent return in May, equivalent to approximately DKK 50,000. This brings their total return for the year to minus 1.2 percent.