DENMARK - Danes could withdraw DKK25bn (US$4.4bn) from their pension savings if a government proposal to release part of the savings managed by ATP is approved in May, the fund has said.
According to a survey conducted for the Danish pension giant in April, more than half of all Danes aged between 25 and 65 will use this opportunity and withdraw their pension savings this year.
ATP said one in five Danes would choose not to withdraw their SP savings and the same number of Danes still remained undecided.
It added if the results from the survey materialised 1.6 million Danes would withdraw approximately DKK25bn of the total SP savings of under DKK40bn in the period until 31 December this year.
Global Pensions understands only the full amount saved so far can be withdrawn by plan members and not part of it.
ATP head of client relations Ellen Dalsgaard Zdravkovic said: "ATP will be handling the largest disbursement exercise of its kind in Danish history, and it goes without saying that each and every disbursement request must be processed in a simple and responsible manner.
"We are used to handling large-scale disbursements - but this disbursement exercise will be unsurpassed in magnitude. We will do our utmost to ensure that the disbursements proceed quickly, smoothly and conveniently for everyone."
According to the survey, six in ten respondents will use their SP savings for consumption.
In this way, SP savings worth DKK9bn after tax would be pumped into the Danish economy in a few months, ATP said.
The fund added most Danes intended to use their SP savings "to pamper themselves, taking a holiday or buying a flat-screen TV".
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