SWEDEN – Only one in seven young Swedes had returned their state premium pension fund choices before the deadline yesterday (May 30), according to the premium pension authority (PPM).
Out of 493,000 new participants in the national second pillar system, only 16% made an effort in choosing six funds out of the around 500 available for pension savers.
PPM said earlier that it would be a positive turn out if half of the new members made an active choice through the system.
It also acknowledged that young people had more “important” things to do in late spring than thinking about their pensions in 40 years time.
The authority even devised an on-line game, based on the popular “Who wants to be a millionaire?” television show, called “Who wants to be a pensioner?” to attract young pension savers.
The monies of the 84% who decided not to make an active choice will be invested by the e15bn default fund, AP7.
Fund choices can be changed over internet, telephone or by mail at any time before retirement.
In a separate move, PPM had to outsource its call centre in Ljusdal in northern Sweden because a significant drop in the number of people who wanted to change their fund choices. Manpower Outsourcing is taking over the centre with its 100 strong staff and PPM’s customer service will be concentrated in Söderhamn.