Nearly a quarter (24 per cent) of Swedes who have transferred their occupational pension are unaware they have they done this, research from AMF has revealed.

The research also showed that more than a third (38 per cent) have moved to a product that is not their preference, with 36 per cent moving to unit-linked insurance when they prefer traditional insurance and 2 per cent moving to unit-linked insurance when they prefer traditional insurance.

Yet despite the misalignement with savers' preferences, Swedes are increasingly moving larger volumes, as AMF found that, between 2022 and 2023, transfer activity in the collectively agreed pension market increased by 54 per cent.

According to AMF, this was ​​driven in part by capital growth as the size of occupational pensions increased due to positive returns.

However, it said that a large part of this trend was also prompted by banks and insurance companies that actively process savers to move their occupational pensions, often in exchange for discounts on mortgages or other insurance.

Indeed, of those who are aware of their occupational pension move, just under a fifth (18 per cent) have received a conditional offer.

AMF's research also showed that the flows mainly go from traditional insurance with the pre-selection companies to mutual fund insurance with the banks.

"Capital growth only accounts for a limited part of the increased moving activity. More problematic is the large percentage who received conditional offers," AMF vice president, Malin Omberg, said.

"It is a warning bell and the big losers are the savers who risk getting worse pensions in exchange for temporary discounts on other products."

Omberg also raised concerns over the findings more broadly, stating: "It is an understatement that since we started following the relocation market for collectively agreed occupational pensions in 2016, we do not see any major differences in our survey.

"One could hope that in nine years there would have been an improvement and self-examination in the industry, but it is obvious that this is not the case. Savers' pensions must be treated with the respect they deserve.

"Regardless of whether it concerns a move to unit-linked insurance or traditional insurance, it is ominous that savers do not end up in the product they prefer and a sign that the system is broken.

"If four out of ten end up in a different product than the one that matches their preferences, it is a sign of bad advice."

Concerns around the level of understanding surrounding pension transfers were also raised earlier this week by Swedish pension company, KPA, after it found that two thirds of Swedes who transferred their pension money did not know that they moved away from a savings account with a guarantee to a savings account without.

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