Sweden’s second-largest commercial pension fund is calling for an extra confirmation step to be added to the current process whereby savers can transfer their occupational pension to another provider, saying a third of people who do this are not aware of what has happened.

AMF, the default provider of the SAF-LO contractual scheme for blue-collar workers, also said in its latest annual report on pension transfer activity in Sweden that three in every five savers in its survey believed more information – or signing with e-identification for a second time after having more time to think – would lead to greater awareness that they were moving their occupational pension.

Aino Bunge, deputy chief executive officer of AMF, said: “The fact that 34% are unaware that they have moved and that 62% think more information or signing with e-identification would increase awareness shows that there is a job to do.”

She said AMF, which manages around SEK800bn (€78bn), strongly supported the right to transfer, but that tangible ways to reduce the “unconscious” moves made had to be found.

This would benefit all serious players and not least the savers, she said.

“We have followed the transfer market for six years and flagged up serious problems – now it is time for a change,” said Bunge.

Those providers initiating a transfer had a big responsibility to raise awareness, she said, but added that AMF also saw opportunities for improved consumer protection.

“The survey shows that only 28% of those who move their pension believe that the provision of information is sufficient today,” she said.

“Therefore, we propose that a confirmation of choice be introduced where savers – some days later, and hopefully on their own – actively confirm their choice,” Bunge said.

This would increase awareness and strengthen consumer protection without transfers taking longer in general, she said.

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