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:
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.