AMF’s strong financial position means an opportunity to improve security for customers with traditional insurance. Therefore, a decision has been made to convert SEK 5.6 billion in existing surplus into strengthened guarantees. The reinforcement covers approximately 700,000 customers who receive their pensions from AMF. The decision is part of the ambition to ensure a good balance between the opportunity for returns during savings and security during payouts.
– The majority of our customers save in or have their pension paid out from our traditional insurance. It is safe saving with a guarantee, where we take care of and invest the money so that it grows as safely and well as possible. Savings where the risk is adjusted depending on how long you save and how long you have until retirement. When the money we are responsible for grows thanks to successful asset management, a surplus arises, and to create a good balance between security and return, we then regularly convert surpluses into guarantees, says Roland Kristen, chief actuary at AMF.
AMF works continuously to improve traditional insurance and adapt it to current conditions. Last year, the guarantee for paid-in premiums was increased to apply to 100 percent of the payment, and a new guarantee enhancement model was introduced. In 2023, 9.3 billion was converted into 660,000 customers who have a payment from old-age pension and survivor’s pension. In addition, the guarantee is continuously strengthened as the customer approaches retirement age.
– This is the second time we have applied our adjusted warranty enhancement model. The adjusted model means that, in addition to reducing the risk in connection with the start of the payouts, we can also in a structured way ensure that the customers receive an adapted level of risk throughout the payout period. The adjusted model applies to the payment of both old-age pension and survivor’s pension from traditional insurance. The aim is to give our customers safer and more stable pension payments over time, says Roland Kristen, chief actuary AMF.
The strengthening of the guarantee means that a larger part of the pension is guaranteed and that the level of risk is reduced. Customers at AMF can see their guaranteed amount by logging on to amf.se. The strengthened guarantee does not affect the size of current payments.
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