Due to the recent introduction of compulsory occupational pensions and the subsequent rise in defined benefit pension schemes, more people depend on the development in the stock markets for their future pensions. Parts of the pension funds for more than 850 000 private sector employees are now exposed to risks in the financial markets. This comes as a consequence of the development of individual saving accounts with individual investment opportunities for occupational pensions. The report investigates different forms of risk in pension schemes with particular attention paid to the defined benefit schemes for occupational pensions. We find that few people make active investment choices. We also find that the funds administering the pension accounts are able to produce returns in line with the increases in prices and wages.
