Almost half (45 per cent) of Swedish households’ financial assets are invested in pension savings, higher than the European Union (EU) average of 18 per cent, analysis from the Swedish Investment Fund Association has revealed.

The research revealed that 73 per cent of Swedes have private fund savings, and if occupational pensions and premium pensions are included, in principle, the entire population can be considered fund savers.

This is far above the United States, which also has a long tradition of fund saving (54 per cent), and "significantly" higher than in other EU countries where fund savings are primarily focused on institutional customers.

In total, funds account for approximately 44 per cent of households' financial portfolios in Sweden when pension and insurance savings are included.

The association said similar calculations for other countries are difficult to make, but funds are not nearly as common in pension savings elsewhere.

Swedish Investment Fund Association economist, Fredrik Hård, said: "Swedish households have a strong tradition of long-term savings in funds and shares.

“It benefits both the individual's economy and access to capital in the business sector. The combination of financial capacity, a good performance in the stock market and successful reforms has made Sweden a role model.”

The research showed that Swedish households' financial assets correspond to as much as 329 per cent of gross domestic product, the second-highest ranking in the EU after Denmark.

The Swedish Investment Fund Association said that Sweden's ranking reflects a “high level” of prosperity and a largely funded pension system.

The research also showed that Swedish households hold larger shares of their financial assets in listed shares (11 per cent) than the EU average (6 per cent).

Almost a fifth (19 per cent) of Swedish households’ financial assets are invested in a bank accounts, “significantly” lower than the EU total of 42 per cent.

The research also found that Swedish funds have among the lowest fees in the EU and 69 per cent of Swedish fund assets are invested in equity funds, compared with 33 per cent for Europe.

It also showed that Sweden ranks high in the Organisation for Economic Co-operation and Development's measurement of financial literacy and higher in actual ability to act.

The association said that Sweden exports a few funds, primarily to the Nordic countries, but imports many foreign-registered funds – mainly from Luxembourg and Ireland, which are fund hubs in Europe.

However, it said that for more fund production to take place in Sweden, some legislative changes are required, and the government has appointed a fund market inquiry to look at these issues.

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