Sweden’s financial regulator, Finansinspektionen (FI), is reviewing the market for individual occupational pensions amid concerns that fees in these products are significantly higher than in collectively agreed schemes.

FI confirmed the review in its Consumer Protection Report 2026, where it stated that while premium pensions and collectively agreed occupational pensions benefit from lower fees due to procurement, equivalent funds in individual occupational pensions can be considerably more expensive.

For example, savers with individual occupational pensions often pay the fund’s standard management fee, which can be around 1.25 per cent, compared with a fee of around 0.34 per cent in collectively agreed occupational pensions (ITP) for the same fund.

FI explained that this is because individual employers do not have the same bargaining power as collective agreement parties.

However, small differences in fees can have a large impact over an entire working life and can erode a substantial portion of returns, FI said. Higher fees in individual occupational pensions, therefore, pose a risk of lower pensions in the long term.

FI also noted that pensions, as a long-term savings vehicle, are rarely monitored or have changes made to them.

FI consumer protection economist, Moa Langemark, said: “Fees in individual occupational pensions can cost hundreds of thousands of kronor over a working life.”

As a result, FI is undertaking a review of the market for individual occupational pensions to better understand what drives fund selection and whether intermediaries act in savers’ best interests.

At the same time, FI highlighted its concerns around how occupational pension transfers are being carried out in practice. It follows a review launched by FI in October 2025 on the growing number of occupational pension transfers.

In its latest report, FI reiterated that transfers have become more common in recent years, often involving moves from traditional insurance into unit-linked products, which can increase risk and reduce guarantees.

While this may suit some savers with a long investment horizon, the regulator stated that decisions are not always driven by the consumer’s needs.

In addition, FI warned of potential conflicts of interest, noting that pension transfers are an important source of revenue for intermediaries and that short-term incentives, such as temporary mortgage rate discounts, can influence long-term pension decisions.

Overall, the regulator cautioned that consumers’ interests are not always the primary focus when transferring occupational pension capital.

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