Less than four in 10 (39 per cent) 18 to 34 year olds in Denmark have investigated whether they have pension savings in several pension companies, research commissioned by Sampension and conducted by Epinion has found.

Sampension noted that young people in Denmark are changing jobs more frequently than older Danes and therefore have several pension schemes, which are expensive due to costs across multiple pension pots.

This is because the savers are paying administration costs on several pension pots.

By comparison, 69 per cent of 35 to 56 year olds have checked whether they have multiple pension pots, while 75 per cent of 57 to 65 year olds have investigated where their pension savings are held.

According to analysis of figures from Statistics Denmark and the Agency for Labour Market and Recruitment, 47 per cent of people employed between the ages of 20 and 34 started a new job in 2022.

"It is natural that many young people have not put much thought into their pension because it can be difficult to relate to something that lies far in the future,” commented Sampension head of market and customer advice, Anne-Louise Lindkvist.

“Nevertheless, it is also important as a young person to spend some time on the pension - not least as we know that young people often change jobs and thus potentially establish several pension schemes, which can be expensive in the long run.

"The more money that goes to expenses over the years rather than to pension savings, the less there will be to do well in retirement in the end.

“Therefore, it is generally a good idea to investigate whether you e.g. as a result of job changes over time, have received several pensions, which can advantageously be pooled, because there can be a lot to save here, especially for young people.”

Calculations by Sampension found that if a young Dane combined their pension pots at age 25, they would save DKK 1,500 a year in administration costs, resulting in an extra DKK 72,000 in retirement.

If this consolidation is done at age 35, they would receive an additional DKK 51,000 in retirement.

"In the coming time, there will be many young people who will enter the labour market after completing their education,” said Lindkvist.

“And for them there is good reason to focus on establishing some healthy financial habits from the start of working life, such as involves continuously paying attention to their pension scheme - e.g. when changing jobs.”

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