SWEDEN - The Premium Pension Authority PPM is planning to send a reminder to 600,000 members of the compulsory defined contribution system who have not changed their fund selection since entering.
The so-called 'wake up call' will be sent out to people born between 1948 and 1979 who entered the PPM system in 2000 and have SEK14,000 (€1,500) or more in their accounts.
An OECD study recently revealed 90% of the almost six million members in the DC system are not choosing any of the over 700 funds offered.
This is the second year in which the PPM, established in 2000, has sought to motivate more people to manage this complementary part of their first-pillar pensions more actively.
"We want the people to be active in their fund choices," Andreas Vedung, analyst at the PPM, told IPE recently.
However, he noted the increasing use of financial advisers for fund selection in the Swedish premium pension plan could pose problems for the system as it generates potential bulk trading volumes.
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