life insurance companies

Falling stock market puts pressure on pensions

A falling stock market and extremely low long-term interest rates are pushing Swedish pension companies into serious debt and bringing some of them close to bankruptcy, the daily Dagens Nyheter reports.

According to the financial analysis company Söderberg & Partners, the companies' debts have increased dramatically only since June this year, and several are entering what the analysts call "a death spiral". This will force them to take precautions - such as raising the premium, or stop taking on new customers in traditional insurance policies.

The analysts at Söderberg & Partners are advising people to move their pension money to some of the stronger companies, especially those who still have long to go until retirement, as the long-term yields of some of the companies may be at risk.