Do you want it like in Sweden? Swedish pension system

General pension

The general pension is a state pension (allmän pension) that is provided to everyone who has lived and worked in Sweden.
It is paid through the Swedish Pensions Agency, which has an official website: www.pensionsmyndigheten.se. Every year, money earned during work, study or maternity leave is credited to the pension account of each citizen. The general pension consists of three parts: income-based pension (inkomstpension), premium pension (premiepension) and guarantee pension (garantipension). Earnings-based and bonus pensions can be taken from age 61. Guaranteed pension – from 65 years of age. In 2013, the average general state pension was CZK 8,900 (after tax).
For 6% of Swedes receiving an old-age pension, the total pension did not exceed 3,600 crowns, for 34% it was in the range of 3,600–8,300 crowns. 7% of pensioners lived outside the country.

Pension amount

Average deductions are 1500-1700 euros. The amount is indicated excluding tax deduction.

For example, a pensioner who has lived his entire life in the country but has never worked will receive 1,100 euros. At the same time, the state pays for housing and food separately.

Housing is paid only if it is rented by a citizen. The state believes that if a citizen has his own real estate, he is rich enough and can pay his own expenses. It is worth considering that buying an apartment in Sweden is a huge investment; most people rent an apartment their entire life.

Important! The size also depends on the region, for example, in Stockholm it is higher, because... there are more people with higher education there.

Every year, a pensioner receives an envelope indicating the amount of all his pension contributions, as well as the calculation of his future pension. The state calculates the amount so that after paying for all services and housing, a person has at least 185 euros left. That kind of money doesn’t allow you to go out to restaurants, but you won’t be able to die of hunger either.

A citizen who lived and worked in Sweden will receive decent deductions in old age, which will allow him not only to eat well, but also to travel.

Minimum and average level

Minimum payments in Sweden are provided to citizens who have lived in the country for at least 3 years, whether they worked or not. The amount will be 800 euros. These social payments are not taken into account as pension contributions, but are assistance from the state.

The cost of living in the country is 1000 euros.

Average level of provision in Sweden:

1. A man who was born in Sweden and lived and worked there all his life will receive about 100,000 rubles or 1,500 euros.
2. A woman under the same conditions will receive about 80,000 rubles or 1,200 euros.
3. A man who was not born in the country, but worked and lived in the country, receives deductions of about 90,000 rubles or 1,300 euros.
4. A woman who was born in another country will receive 70,000 rubles or 1,000 euros.

If an immigrant has worked and lived in Sweden for at least 1 year, he has the right to receive government contributions . However, before moving, he had to live in the European Union.

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Premium pension

2.5% of wages and other taxable payments goes annually into a pension account for a future premium pension (premiepension).
The money for this pension is invested in various funds consisting of securities or shares, of which there are numerous owners of different people. You decide for yourself which equity funds to invest your money in. When you put money into a fund, you are buying a small share of that fund. As the value of securities increases, you and other fund owners will receive more money. When the value of a fund's securities or shares declines, owners receive less cash. Thus, the size of the bonus pension depends on how much and in what funds the future pensioner has placed money, as well as on the development of the value of shares and securities held in them.

Where and how do Swedish pensioners live?

The Swedish Pension Fund gives people the opportunity to create part of their pension themselves. In general, state pension payments are as follows:

• Payments from the income part;
• Payments from the guaranteed part;
• Premium payments.

The income portion is accumulated from the payment of income tax of a Swedish citizen, and, as you know, in Sweden it is never less than 16%.

The bonus portion is also formed when taxes are paid. Only 2.5% goes to pension accounts to create a bonus reserve. It is this money that every resident of the country can manage. Thus, bonus money can be invested in stocks or investment funds. If at the time of retirement a person has formed a growing portfolio of pension investments, he receives a significant bonus to his pension. When bonus money is poorly invested, the person receives little or no additional income.

The part of the pension guaranteed by the Swedish state is paid to all citizens of the country, but its size depends on length of service and other circumstances.

To receive guaranteed payments, a person did not have to work at all, but had to live in Swedish territories for a full 40 years or more. When a citizen is entitled to other benefits, the size of the guaranteed pension may be reduced.

The guaranteed pension rate, taking into account length of service, can be about 800 euros. When the labor pension does not bring good income, the state gives the person a housing benefit. Of course, it is more profitable for the state for a person to live in a nursing home, so each case of providing benefits is considered individually.

All possible pension benefits are received by those Swedes whose old-age payments are below the subsistence level. According to statistics, housing benefits are more often given to women than to men.

Today, housing benefits and many other allowances are enjoyed by those women who were housewives several decades ago.

The average pension in the state without benefits and allowances exceeds 1.5 thousand euros per month. The Swedish pension fund has an agreement with many EU countries on pension settlements. So a person could work in another country, but these years, according to the contract, count towards his total length of service and are taken into account when calculating payments in Sweden.

Now more than 152 thousand older people receive a Swedish pension and live in 164 countries. Where are they going? Finland has the largest number of Swedish grandparents – more than 58 thousand people. The second most popular country is Norway, and the third, easy to guess, is Denmark. Swedes go to these countries to work, and then stay there to live, receiving a Swedish pension there. The most popular southern European countries are Spain and

, where more than 11 thousand Swedish pensioners live.

The most important thing that attracts Swedish pensioners to Spain, France, and Malta is that they can afford much more there than in Sweden. Taxes and prices are lower, the weather is sunnier - a winning option. They buy property before they retire and then move away. One has only to google the topic “pensioners abroad” and many sites will come up designed to attract Swedish grandmothers.

Now more than 152 thousand older people receive a Swedish pension and live in 164 countries. Where are they going? Finland has the largest number of Swedish grandparents – more than 58 thousand people. The second most popular country is Norway, and the third, easy to guess, is Denmark. Swedes go to these countries to work, and then stay there to live, receiving a Swedish pension there. The most popular southern European countries are Spain and Greece, where more than 11 thousand Swedish pensioners live.

The most important thing that attracts Swedish pensioners to Spain, France, and Malta is that they can afford much more there than in Sweden. Taxes and prices are lower, the weather is sunnier - a winning option. They buy property before they retire and then move away. One has only to google the topic “pensioners abroad” and many sites will come up designed to attract Swedish grandmothers.

Labor pension for long service

The long-service pension (tjänstepension) is a salary deduction paid by the employer.
Most people who are employed are entitled to such a pension. Students, unemployed people or those working in enterprises that do not have a collective labor agreement, as well as private entrepreneurs do not receive long-service pensions. There are several organizations that pay pensions for long service. They enter into contracts with various employers. The size and payments of such pensions vary depending on the decisions of trade unions and employers.

Structural features of the Swedish pension system

Pensions in Sweden are a complex, multifaceted structure that includes both a minimum social security guarantee and numerous benefits. The system consists of 3 parts:

• general state, or basic, pension;
• long service pension;
• savings in private pension insurance funds.

A guaranteed pension is awarded to any Swedish citizen who has lived in the country for at least 40 years. In this case, a person can either never work at all or have minimal labor income. The guaranteed pension can also be changed downward if a citizen has one or another social payment - for example, a survivor's benefit.

The income portion of a pension is calculated based on the total amount of tax payments made by a person throughout his life.

Moreover, the bill includes not only the high income tax of 16%, deducted from the salary, but also all taxes that, in accordance with Swedish law, a citizen paid in the course of carrying out other types of activities from which he made a profit.

The income component of pensions reflects the tendency in Sweden, as in many other modern European countries, to encourage retirement as late as possible. Working past 65 is especially valuable for older people in Sweden, as it contributes to a significant increase in their pension.

Finally, the bonus part of the pension is associated with the funds transferred by the citizen to the pension fund. The Swedish pension system is structured in such a way that a citizen independently decides in which securities of firms and companies he wants to invest the transferred funds. In the years that will pass before a person reaches retirement age, the shares of some companies may fall, while others, on the contrary, may rise. The premium component of the pension will largely depend on how far-sighted the choice was.

Retirement age

In 1913, Parliament set the retirement age at 67 years.
On July 1, 1976, it was reduced to 65 years. A person decides for himself when he wants to retire. The later you retire, the larger your monthly pension payments will be. Earnings-based and bonus pensions can be taken from age 61. The guaranteed pension is paid upon reaching 65 years of age.

People usually retire at age 65, but they have the right to continue working until age 67. If you want to work longer than this period, you can negotiate this with your employer.

You yourself can decide the amount of pension payments. You can receive from 25 to 100 percent of the accrued pension monthly. You can, for example, receive half of your pension benefits and continue to work part-time.

Private pension funds

Residents of Sweden can provide themselves with additional income if they create their own savings. This can be done in two ways:

1. Become a client of a private pension fund.
2. Open a special bank account.

In the first case, a citizen chooses a pension plan and contributes a fixed amount to the pension fund every month. In the second, he chooses how much money he can transfer to a bank account. Upon reaching retirement age, a citizen will receive payments from a private pension fund or interest on the amount in a bank account.

In Sweden, 38% of working citizens contribute a share of their income to form their own pension capital.

Benefit for the elderly

Persons aged 65 who are not receiving a pension are entitled to old age benefits (äldreförsörjningsstöd).
This benefit can also be paid to those who have a very small pension. In 2013, the average benefit for the elderly was 3,625 kroons (tax-free).

• Social service and social protection centers. • Pensioners are leaving Sweden. • There are more homeless pensioners in Sweden. • Taxes in Sweden. • Social insurance. • Social services. • Boarding home for the elderly.

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