Although more than SEK 200bn worth of Swedish occupational pensions has been transferred over the past decade, nothing has improved in terms of savers' awareness of these pension transfers, research from AMF has revealed. 

The AMF's Transfer Report, which is now in its tenth year, revealed that more than a quarter (27 per cent) of savers are not aware that they have moved their occupational pension.

This is broadly consistent with previous years, as AMF confirmed that this figure has remained between one in four and one in three since the report began.

The impact of this lack of awareness was also seen, as this year's report found that four out of 10 people are given a different form of savings than the one they themselves prefer.

According to the AMF, these are almost exclusively savers who prefer traditional insurance but end up in unit-linked insurance after they move, pointing to "major shortcomings" in the guidance they receive. 

This was not the only concern raised around the advice savers are receiving, as AMF warned that occupational pensions are often used as a "bargaining chip", with a "particularly interesting" trend identified around mortgages and pension transfers.

According to the report, among those who have been in contact with a financial actor and subsequently consciously transferred their occupational pension, 30 per cent said that the contact originally concerned a mortgage.

In addition to this, 14 per cent received conditional discounts in connection with transferring their occupational pension.

Three out of five have received a discount on mortgages and one out of five has received a discount on either other banking services, non-life insurance or a full-customer discount.

"I think it raises a lot of questions about how the moving process works and what information customers receive," AMF vice president, Malin Omberg, said.

"A large number receive help to carry out the move and the fact that they don't even know they have moved is a major understatement for the industry. We have been studying this issue closely for 10 years now, and in that time nothing has happened in terms of awareness. However, more and more money is moved every year.

"I often think that many savers do not fully understand the consequences. For example, we can see older people approaching retirement and exchanging guarantees, which is exactly the time when you want more and more of your pension to be secured.

"Many also do not understand that the discounts they receive when they move are temporary, while the pension is something you should have with you for the rest of your life. It is a big problem, mostly for those savers who could be hurt, but also for confidence in the system in general."

AMF said that, by highlighting trends, risks and behaviors, it is hoping to contribute to a more transparent and secure pension market where the best interests of the saver are at the center. 

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