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How shopping around for better fund would have generated lots of money for Swedish pensioners

Friday, 04 January 2013
Some call it lazy other call it uninterested - this is what happens when many Swedish pensioners and savers failed to grab and benefit from funds that had very high paying penitential.

The failures benefit from these funds with high interests and returns in hundreds of thousands of pension saving has been criticised by market observers.

Some 1.4 million-service managers can move their pension assets and reduce fund fees. But only about 170,000 have so far made it - actively moved their pension to such funds with high interest earning potentials.

According to the Swedish based services pension company, Collectum, it estimates that a total of Skr4.7 billion is lost in "unnecessary" expensive pension contributions in a decade.
"Anything over one percent in fee is unnecessarily high. On average, the average 0.54 percent is what stands on the procured funds in ITP," says Jenny Jeppsson, CIO at Collectum. ITP stand for tjänstepension för privatanställda tjänstemän translated as pension for privately employed service deliverers.

One percentage point lower in fee can lift the future pension fund by up to 25 percent, according to Jeppsson.
Many people find it complicated to pursue this pension swapping or comparing process so they ignore the charges. This is unlike in mortgages where many Sweden can do various forms of comparisons here and there.

Probably there is the urgency today than before to educated pensioners or those people saving in such funds abut the opportunities that are out there and the easiest ways to navigate the complicated turned-off elements in such market comparison mechanism
The core tenant is that there is no correlation between high fees and high returns, that is, expensive funds are not necessarily good.
by Scancomark.com Team

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