More than nine in 10 (96 per cent) 18-34-year-old women in Sweden have little or no understanding of how their occupational pension is invested, research conducted for SH Pension has shown.

The study, conducted by Novus, found a gender gap in understanding of how occupational pension money is invested, as 79 per cent of 18-34-year-old men said they have little or no understanding of how their occupational pension is invested, 17 percentage points below women of the same age cohort.

Three quarters (75 per cent) of all women in Sweden said they feel uncertain about how their occupational pension is invested, compared to just over half (57 per cent) of men.

SH Pension pension specialist, Eva Fluhr, said there is still a great deal of ignorance about occupational pensions among both men and women, explaining that this low level of knowledge is partly because the system is perceived as complex and that retirement often feels a long way off.  

The study also highlighted that many women also experience insecurity about their pension investments, with 35-64-year-old women feeling the most insecure.

Almost half (44 per cent) of this cohort said they feel insecure, compared with 31 per cent of men in the same age group.

In the 50-64-year-old cohort, 49 per cent of women said they feel insecure compared to 36 per cent of men.

In response to these figures, Fluhr highlighted traditional pension insurance as a solution.

“It is a form of savings that has a built-in guarantee and risk diversification across several asset classes. It is a safer choice in troubled times, and historically, traditional insurance has proven to withstand stock market falls in an impressive way, while at the same time providing savers with professional management without having to be active themselves," Fluhr concluded.

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