SWEDEN - One-third of Swedes under the age of 30 believe they will have to work beyond the national retirement age of 65, according to a survey by Statistics Sweden commissioned by Collectum, the supplementary occupational pension administrator.
Of those surveyed, with ages ranging between 15 and 60, more than a quarter believe they will have to work beyond 65 as well.
However, only 15% of 50 year olds agreed.
Nearly half (46%) expect to retire at 65, while more than a quarter believe they will retire sooner.
Separately, research conducted by Morningstar on behalf of Collectum shows that during the three-year period ending June 30, the funds administered by Collectum within the ITP system -the supplementary pensions for white-collar employees - have beaten the MSCI World by 5.9%.
The MSCI World fell by 21.2% during the three-year period, whereas the funds within the ITP system fell by 15.3%.
During the period, traditional insurance products retuned 1.7% within the ITP system, where some SEK22bn (€2.4bn) of assets was placed during the time.
In other news, Lars Frisell, chief economist at Finansinspektionen, the Swedish regulator, does not believe the guarantees offered by life companies are viable in the long term and argues that they should be removed.
He said the guarantees given earlier were difficult to live up to because of the low long-term interest rate environment, which meant life companies were unable to achieve the rates of returns promised without taking on additional risk.
To take on additional risk, additional capital would be required, he said, leading to a troubling scenario for life companies that may lead to younger savers having to subsidise older members who have the generous guarantees.
Frisell urged life companies to stop offering the guarantees, as the scenario could further deteriorate should the low interest rate, combined with low inflation, remain in place for the long term.
He also said the word 'guarantee' may lead some customers to think there is a government guarantee, which is not the case.
Some insurance companies have expressed concerns about Frisell's views.
Daniel Ericsson, deputy chief executive at Folksam, the pension and insurance provider, said the low interest rates, combined with the new Solvency II regulations, could have the effects Frisell highlighted because it would lead to a focus on quarterly numbers.
He added that, if life companies were able to invest for the long term, they would be able to offer better pensions.