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Examples

The administration and investment costs at the Cost-of-Living Allowance Fund are among the lowest in the industry. Here are some examples of what it costs to have a savings account.

The amount of the costs varies depending on whether you have invested your entire LD Retirement Savings portfolio in LD Discretionary, or whether you have chosen to invest a greater or lesser proportion of your savings in the other portfolios. Below are examples of both scenarios.

Example 1

Costs associated with the entire LD Savings plan

This shows the costs of holding your entire LD Retirement Savings in LD Discretionary. Your costs are deducted on an ongoing basis and will therefore vary throughout the year as returns are credited to your account. The example shown here is simply intended to give you a good idea of the level of costs, but it is not exact. For the purposes of this example, we have assumed a steady savings balance of DKK 60,000 throughout the year.

LD Retirement Savings of DKK 60,000 in LD Discretionary Per cent Kr.
Administration 0.11 66 kr.
Investment 0.46 276 kr.
Total costs 0.57 342 kr.

Example 2

Annual costs of being a pool voter

The portfolios have different expense ratios.

Here are just a few examples where the allocation of funds is as follows:

  • 50 per cent in LD Discretionary
  • 30 per cent in LD Danish Equities
  • 20 per cent in LD Short-Term Bonds
Annual costs of the LD Retirement Savings plan of 60,000 kr.

Here we show a calculation of the costs involved in allocating your LD Retirement Savings to portfolios in accordance with the breakdown shown above. The actual costs will vary throughout the year as returns are credited to the funds you hold in the various portfolios. You need to add together the administration and investment costs to get the full picture.

Cost of Breakdown in DKK Per cent Kr.
Administration - 0.132 84 kr.
Investment costs Breakdown in DKK Per cent Kr.
LD Discretionary 30,000 kr. 0.46 138 kr.
LD Danish Equities 18,000 kr. 0.30 54 kr.
LD Short-Term Bonds 12,000 kr. 0.32 38 kr.
Total costs - 0.38 292 kr.