Sweden’s pension system is renowned for its inclusivity and robustness. Whether you’re a Swedish citizen or a foreigner, you’re entitled to a pension upon reaching the retirement age. This pension system is designed to provide financial security to all residents in their golden years, regardless of their nationality or the duration of their stay in Sweden.
The Swedish pension system is based on the principle of universality, covering everyone who works or has worked in Sweden. It’s not just about the contributions you’ve made, but also about ensuring that everyone who has contributed to Swedish society can enjoy a comfortable retirement.
Key Takeaways
- The Swedish pension system is comprehensive, offering public, occupational, and private pensions to provide financial security in retirement.
- Sweden’s pension system is inclusive, covering all residents, including foreigners who have worked in the country.
- The amount you receive from your pension depends on your lifetime earnings, the duration of your employment, and any additional income.
- Claiming your pension in Sweden requires an application, which can be done online through the Swedish Pensions Agency’s website.
Pension Age in Sweden
Sweden, like many other countries, has a set age at which individuals become eligible to receive their pension.
As of 2023, the official pension age in Sweden is 65 years. However, it’s important to note that Sweden offers a flexible pension system. This means you can choose to retire anytime between the ages of 61 and 67, depending on your personal circumstances and preferences.
The Swedish government has recognized the increasing life expectancy and the desire of many individuals to continue working beyond the traditional retirement age. As a result, ongoing discussions are about gradually increasing the official pension age to align with these societal changes.
While these changes may seem daunting, they are designed to ensure the sustainability of the pension system for future generations. Remember, the goal is to provide everyone with the opportunity to enjoy their retirement years with financial security and peace of mind.
How to Claim Pension in Sweden
Claiming your pension in Sweden is a straightforward process, but it’s important to know the steps and when to take them. Remember, pensions are not automatically paid out when you reach retirement age. You need to apply for them.
Here’s how you can do it:
- When to Apply: It’s common for people to apply for their pension about six months before they plan to retire. This gives the Swedish Pensions Agency enough time to process your application.
- How to Apply: You can apply for your pension online through the Swedish Pensions Agency’s website. The website provides clear instructions and support in English, making it easy for you to fill out and submit your application.
- Foreigners Applying for Pension: As a foreigner, if you’ve lived or worked in Sweden for a minimum of three years between the ages of 16 and 64, you can apply for a pension upon reaching retirement age. The amount you receive will depend on the number of years you’ve worked in Sweden. You’re entitled to a full pension only if you’ve worked for 40 years in Sweden. If you’ve worked for less time, your pension will be proportionately reduced.
Claiming your pension is a significant milestone, marking the transition into a new phase of life. The Swedish pension system is designed to make this process as smooth as possible, ensuring that you can enjoy your retirement years with peace of mind.
Public Pensions in Sweden
In Sweden, the public pension system is a cornerstone of retirement planning. It’s designed to provide a safety net for all residents, ensuring that everyone has access to a basic level of income in their retirement years. Let’s break down the two main types of public pensions in Sweden:
- Income Pension: This is the primary component of the public pension in Sweden. The income pension is based on the income you’ve earned over your working life. Every year, a portion of your income is set aside for your income pension. The more you earn and the longer you work, the higher your income pension will be. It’s important to note that everyone who has an income from employment or self-employment contributes to the income pension.
- Guarantee Pension: The guarantee pension is designed to provide a basic level of financial security for those who have had little or no income during their working life. To be eligible for the full guarantee pension, you must have lived in Sweden for at least 40 years after the age of 25. If you’ve lived in Sweden for less time, you can still receive a guarantee pension, but the amount will be reduced proportionally.
Understanding these two types of public pensions is key to planning your retirement in Sweden. They form the foundation of your retirement income and play a crucial role in ensuring your financial well-being in your golden years.
Occupational Pension in Sweden
In addition to the public pension, many people in Sweden also have an occupational pension. This is a pension that you accrue through your employment. It’s an important part of the Swedish pension landscape and can significantly supplement your income in retirement.
The occupational pension is a result of agreements between employers and trade unions. It’s quite common in Sweden, covering approximately 90% of all employees.
The amount you receive from your occupational pension depends on your salary, how long you’ve been employed, and the specific agreement your employer has with the trade union.
Here’s how it works: both you and your employer contribute to your occupational pension. The exact percentages can vary, but typically, employees contribute around 4.5% to 8.5% of their salary, with employers contributing the rest. This joint contribution ensures that you’re not shouldering the burden of your future financial security alone.
Remember, your occupational pension is in addition to your public pension. Together, they form a robust safety net that ensures you can maintain a comfortable standard of living in your retirement years.
Related: The minimum wage in Sweden explained
Private Pension in Sweden
While public and occupational pensions form the backbone of the Swedish pension system, private pensions offer an additional layer of financial security for your retirement. A private pension is a voluntary savings scheme that allows you to set aside additional funds for your retirement.
In Sweden, various financial institutions offer private pension schemes. These are entirely funded by you, the individual, and the benefits you receive upon retirement depend on the agreement you have with your pension company.
Here’s how it works: you decide how much you want to contribute to your private pension each month. These contributions are often tax-deductible, providing an immediate financial benefit. Upon retirement, you can choose how you want to receive your private pension. The options typically include a life annuity, phased withdrawal, or lump sum.
A private pension can be a valuable tool for enhancing your financial security in retirement. It offers flexibility and control, allowing you to tailor your retirement savings to your specific needs and goals.
Supplementary Pension Schemes in Sweden
To further bolster your retirement savings, Sweden offers supplementary pension schemes. These schemes are designed to provide additional financial support in retirement, supplementing the income you receive from public, occupational, and private pensions.
One of the most significant supplementary pension schemes in Sweden is the Premium Pension. This state-administered, defined-contribution pension scheme forms part of the public pension. When you work and pay pension contributions in Sweden, a portion of your income is automatically allocated to your Premium Pension.
Here’s how it works: you can choose how your Premium Pension funds are invested from a range of different funds. If you don’t make an active choice, your contributions are invested in a default fund managed by the Swedish Pensions Agency.
The amount you receive from your Premium Pension depends on how much you’ve contributed over your working life and the performance of your chosen funds. This scheme gives you an element of control over your pension savings and the opportunity to potentially increase your retirement income.
Keep in mind that the Swedish pension system is designed to provide a comprehensive safety net for your retirement. By understanding the different components of this system, you can plan effectively for your future and look forward to a comfortable and secure retirement in Sweden.
State Pension Amount in Sweden
Now that we’ve covered the different types of pensions in Sweden, you might be wondering: how much can I expect to receive from my state pension? The answer to this question depends on several factors, including the number of years you’ve worked in Sweden, your income during those years, and any additional income you may have.
The state pension in Sweden consists of two parts: the income pension and the guarantee pension. The income pension is based on your lifetime earnings. The more you earn and the longer you work, the higher your income pension will be.
On the other hand, the guarantee pension is designed to provide a basic level of financial security for those who have had little or no income during their working life.
The full guarantee pension is available to those who have lived in Sweden for at least 40 years after the age of 25. If you’ve lived in Sweden for less time, you can still receive a guarantee pension, but the amount will be reduced proportionally.
The exact amount you’ll receive from your state pension can vary, but as a rough guide, the average state pension in Sweden is approximately SEK 12,000 per month. Remember, this is just the state pension – if you have an occupational pension and/or a private pension, you’ll receive additional income from these sources.
Related: All you have to know about child benefits and support in Sweden
Additional Resources
- Swedish Pensions Agency: This is the official government agency responsible for pensions in Sweden. Their website provides comprehensive information about all aspects of the pension system. Swedish Pensions Agency.
- Sveriges Riksbank: As Sweden’s central bank, Sveriges Riksbank provides detailed economic analyses and reports that often include information about pensions. Sveriges Riksbank.
- Swedish Social Insurance Agency: This agency provides information about social insurance in Sweden, including pensions. Swedish Social Insurance Agency.
- OECD: The Organisation for Economic Co-operation and Development provides comparative data and analyses of pension systems around the world, including Sweden. OECD.
i was born in stockholm in 1953 and my parents moved me to canada in 1957. do i still qualify for a pension in any form. my name is Leif nissen Thomsen and live in canada.
Hi Leif,
Sweden’s pension system is primarily based on work and residence. Since you left Sweden as a child, you likely do not qualify for a Swedish pension unless you worked or contributed to the system later. However, you can check with the Swedish Pensions Agency (Pensionsmyndigheten) to confirm any possible entitlements.
Best regards,
Hoping you can fill in some blanks for my husband and me.
My Swedish husband moved to US to marry me 24 yrs ago at the age of 36. Before that he worked from the time he was a teenager in Sweden. He’s just turned 60 and his mother recently died and left us her co-op and we are considering moving back to Stockholm. We have no family here but he does there as well as lifelong friends.
He does IT work and his current company will let him continue to work remotely for them although he’s leaning toward seeking employment in Sweden (if we move).
Our questions are:
1. whether he will get a pension from Sweden and if there might be a calculator online where he can figure out how much that might be.
2. If I will get any kind of a basic pension as his wife (I am older…71…and he says it’s unlikely I’ll be able to find a job there at my age, although I’d like to. He says no one works (or will hire anyone) at my age in Sweden.
3. Will we be covered for healthcare since Medicare won’t carry over (and would that depend on whether he gets a job based in Sweden vs. working remotely)?
So many questions! Thank you for any help/advice/answers you can provide.
Hi Carol,
Your situation sounds like a big but exciting transition! Here are some key points to help you:
Swedish Pension – Your husband is likely eligible for a national pension (allmän pension) from Sweden based on his past work. He can check his pension status and estimate future payments at minpension.se (requires a Swedish BankID).
Your Pension – As a non-Swedish citizen, you might qualify for a guarantee pension (garantipension) if you become a permanent resident and meet residency requirements.
Healthcare Coverage – If he moves back and registers as a resident (folkbokförd), you’ll both get access to public healthcare through Försäkringskassan. If he works remotely for a non-Swedish employer, he may need private insurance.
I recommend checking pensionsmyndigheten.se and forsakringskassan.se for the latest details.
Best of luck with your decision!
Hi Kristian, my name is Alberto and I am trying to help and support my ex sambo who is a swedish citizen (born in Sweeden, August 1957). We split 17 years ago but remain very close friends. During her working live in Sweeden she worked at malmoe airport for Civil Aviation about 11 years, also later as a crew on a sweedish shipping company and so she worked as secretary on a teck company until she moved to Argentina in the middle nineties. Now she will try to get her pension there, any recomendation for the process or how to apply to get the best of the system. Tks and Brgds
Hi Alberto, thank you for your thoughtful message — it’s great to hear you’re helping your friend with this.
Since she’s a Swedish citizen and has worked in Sweden for a number of years, she should absolutely be eligible for some pension benefits from the Swedish state. Here are a few steps and tips to get started:
Contact the Swedish Pensions Agency (Pensionsmyndigheten): They handle everything related to public pensions. She can reach them by phone or use their website. There’s a form to apply for a pension from abroad, which can be submitted online or by post.
Gather work history: It’s helpful if she can list all her employment in Sweden — dates, employers, and roles. The agency can often find her employment records, but the more she has ready, the smoother the process.
Register her move to Argentina: If she didn’t already report her move when she left, she may need to inform the Swedish Tax Agency (Skatteverket). This can affect things like tax status on pensions.
Private or occupational pensions: She might have money in an occupational pension (tjänstepension) from jobs like her airport or shipping work. Each employer or insurance company would handle these separately. She should reach out to them directly or use a service like minpension.se (available in Swedish) to get an overview.
Application timing: She should apply at least 3-6 months before she wants the pension to begin. Pensions from Sweden can usually be paid out even if she lives abroad.
If needed, she can also ask for help in English through the Pensions Agency — they’re used to international cases.
Wish you both the best with the process! Feel free to reach out again if there are more questions.
Warm regards,
Kristian
Hi Kristian,
It’s very informative to read your comments and answers. These prompt me post a question to you. I lived and worked in Sweden for about 9 years in the late 80’s and early 90’s. I know that I can get some Swedish pension. Since I do not think the amount is much, it would be nice to have the monthly pension goes into a Swedish back account so that I can take the fund out at a later date with a lump sum. Do you have any suggestions on that? It would be better if the Swedish bank in an online back with no or low fee. Thank you very much in advance.
Hi Steve,
Thanks a lot for your kind words — I’m really glad the information helped you! I’ll do my best to help with your question too.
First off, you’re absolutely right: since you worked in Sweden for about 9 years, you should be entitled to some Swedish pension. And yes, it’s smart thinking to let it build up in a Swedish bank account if you don’t need the money right away. That way, you can withdraw it later in a lump sum if that suits you better.
Now, about banks:
In Sweden, most banks charge a monthly fee, even for simple accounts. It’s just… part of life there (I know, annoying!). But there are a few options that are better for your situation:
ICA Banken – very low fees, easy online access.
Skandia – no monthly fees if you only use them for basic savings.
SEB and Swedbank – big banks, easy online services, but they usually charge about 30-50 SEK/month unless you negotiate or qualify for “basic accounts.”
The catch?
You’ll usually need a Swedish address or BankID to open an account from outside Sweden. If you already have an old Swedish account open, you might be able to reactivate or use it without much hassle. Otherwise, you might need to call the bank directly and explain your situation — they are often willing to help pensioners or former residents.
If you can’t or don’t want to deal with that, another idea could be to let the Swedish Pension Authority pay you directly into a foreign account, but keep in mind you’ll lose a little in currency conversion fees.
Quick action steps you can take:
Check if you still have an active Swedish bank account from before.
If not, try reaching out to ICA Banken or Skandia — they are the easiest for low-fee online banking.
Ask the Swedish Pensions Agency (“Pensionsmyndigheten”) if they have any updated advice for your situation (they’re actually super helpful if you email them!).
You’ve clearly put some smart thought into this already, Steve.
You’re on the right track — you can make this work!
Good luck, and feel free to post again if you want help when you get to the next step!
– Kristian