The Pension Landscape Sweden

The most distinctive aspect of the statutory pension in Sweden are pension accounts composed of the earnings-related pension, titled Income Pension, as well as a smaller funded share, the so-called ‘Premium Pension’.

The benefits are calculated on the bases of the paid contributions, while also reflecting the life expectancy and a certain projected income growth. Furthermore, there is an income-tested Guarantee Pension that secures the basic needs. Over 90 % of Sweden’s workforce are covered by occupational pension schemes that are, in general, based on nationwide collective bargaining agreements with a highly standardized framework.

Provider/ Institution: Pensionsmyndigheten (Swedish Pensions Agency, SPA)
Statutory national

The statutory pension insurance is obligatory for all employees, self-employed and Swedish residents. The system consists of several different parts, the main parts are listed below:

Guarantee Pension:

  • Income-tested pension for people with no or low income pension, and at least 3 years of residency in Sweden.
  • Additional housing supplement and maintenance support if the conditions are met. 
  • 40 years of residency in Sweden to receive a full guarantee pension. Period of residence in other EU/EEA states can be taken into account.
  • Financed by general taxes.

Income Pension:

  • The benefits are calculated on the basis of lifetime earnings reported to the system.
  • Financed on a pay-as-you-go basis through the mechanism of a notionally defined-contribution system.
  • Contribution of 16 % of pension base (pension-qualifying income and pension-qualifying amounts).

Premium Pension:

  • Additional fully funded, employee-financed system.
  • Benefits result from individual income and rate of return.
  • Contribution of 2.5 % of pensionable income.
  • The possibility of choosing funds to invest the contribution.


The total contribution for the statutory old-age pension is 18.5% (paid by the employer and the employee). The maximum pensionable income that contributions are paid for is up to 7.5 times the income base amount for each earning year.

Coverage rate: 90 % of the workforce is covered by occupational pension schemes established on the basis of  collective bargaining agreements.
Mandatory/ voluntary: Non-obligatory by law.
Compulsory insurance on collective agreements.
Voluntary occupational pension insurance for employed and self-employed persons not covered by compulsory insurance.
Tax incentives Contributions to a tax-approved scheme are tax-deductible up to a certain limit. But employee contributions are rare.
Products Traditional insurance, fund insurance, bank saving plans.
Tax incentives: Contributions are tax deductible under certain conditions.

If you have been saving for a pension in Sweden, the minpension service will help you figure out how much money you will receive (from your Swedish pension claims), once you retire.

To get started, you have to log in. If you have a Swedish electronic identification (e-ID), you can log in to Pensionsmyndigheten.se or minPension.se to see your pension forecast.