The funding level and the policy funding level are published around the 10th working day of each month.
Funding level on June 30, 2021: 113.2%
Policy funding level on June 30, 2021: 104.9%
The policy funding level is used to make decisions on indexation. The policy funding level is the average of the last twelve months of funding levels.
Click here for more information about the monthly development of the funding level.
Funding level evolution
The funding level of the pension fund rose by 0.7 percentage points to 113.2% in June. During June, share markets achieved a positive return and interest rates also fell. The positive return on shares was the main reason for the positive development in the funding level during June.
The economic recovery is continuing. A number of sentiment indicators are showing improvements. For example, European consumer confidence is continues to grow. The upward trend in shares continues. As of mid-June, the upward trajectory was subject to a minor correction when the central bank of the United States implied that interest-rate rises might follow in 2023 if inflation continues to rise. However, signals from central banks that they will maintain an expansionary (loose) monetary policy as well as the expectation that the increased inflation would be of a temporary nature ensured that the upward trend in equities resumed a number of days later.
The combination of an expansionary (loose) monetary policy and progress on vaccinations paints a positive picture for further economic recovery. However, extreme monetary policy and high budget deficits continue to be a longer-term risk.
There are still considerable market uncertainties. The number of coronavirus infections initially decreased significantly, but this number has been rising recently as a result of the easing of restrictions and the more contagious Delta variant of the coronavirus. At present this has not impacted financial markets. The Board will continue to monitor developments closely.
|As at end of||Q1 2021||2020||2019||2018|
|Policy funding level||100.5%||98.4%||105.7%||113.3%|