In short: Switching pension fund means moving your individual pension account from a fund run by one pension company to the same type of fund run by another.
Simply put: In many systems you are not tied to your company for ever. After a minimum period you can move your money elsewhere. Compare fees, the return after fees and the fund rules. Switching may cost a fee. For the EU's personal pension product (PEPP), you may switch provider after at least five years, with capped fees (Regulation (EU) 2019/1238, Art. 52 and 54).
Example: Mila has been in a fund since 2024. Once one year has passed, she compares two companies' fees and applies to move her account.
Watch out: Changing company is not the same as leaving the funded pillar for the state fund — the two have different rules.
Example: Bulgaria — The insured person may move the account to the same type of fund of another company once one year has passed since the first contract, the automatic allocation or the previous switch; the procedure is set by an FSC ordinance (Social Security Code, Art. 171(1) and (7)). Voluntary funds may charge a transfer fee (Art. 257(1)).
Check in your country — Ask your financial supervisor whether and how often you may switch, and at what cost.
Source: Regulation (EU) 2019/1238 (PEPP) — https://eur-lex.europa.eu/eli/reg/2019/1238/oj · Social Security Code (Bulgaria), Art. 171 (in Bulgarian) — https://lex.bg/laws/ldoc/1597824512