Danish pension savers could save substantial amounts by reviewing and consolidating their pension accounts. There are over two million dormant pension accounts in Denmark, where contributions have ceased but payouts have not yet begun.

Consolidating a dormant pension account with an active one can eliminate the annual administration fees, resulting in more funds available upon retirement. Some pension companies rely significantly on fees from dormant accounts, with fees varying widely.

It is crucial for individuals to take action to consolidate their pension accounts as they do not automatically transfer when switching pension providers. The Competition and Consumer Authority estimates that Danes collectively pay one billion Danish kroner annually for administering these dormant accounts.

While some dormant accounts may not be suitable for immediate transfer, especially small accounts known as 'klatpensioner,' efforts are recommended to explore automatic transfers for the benefit of savers.

The Competition Council suggests examining the automatic transfer of new dormant accounts to the actively contributed account to prevent excessive administration fees. Recommendations aim to enhance competition in the pension market for a more efficient system.