What Is the Statutory Retirement Pension in Sweden?

In Sweden, the statutory retirement pension system provides financial support to employees when they retire. This pension is known as "allmän pension" and is mandatory for all workers in Sweden. But how does it work, and what do you need to know as an employee?

How Are Pension Contributions Made?

Your employer is responsible for making pension contributions on your behalf. These are automatically deducted from your salary each month and sent to the Swedish Pensions Agency (Pensionsmyndigheten). The system is designed to be seamless for employees, so you don't need to do much.

What Is Included in the Pension?

The pension consists of two parts:

Income-based pension: This is the largest portion, based on your salary.
Premium pension: A smaller portion, which you can choose to invest in different pension funds.

Do I Have to Do Anything as an Employee?

While the employer handles the payments, there are a few things you should do:

Verify your personal details: Make sure your information (like your personnummer and address) is accurate with your employer.
Review your pension statements: Once a year, you’ll receive a pension statement from the Swedish Pensions Agency, which shows the contributions made for you.
Choose your premium pension investments (optional): If you want, you can decide where the premium portion of your pension is invested.

How Much Will I Receive?

The amount you will receive depends on your income and the number of years you've worked in Sweden. Generally, the more you earn and the longer you work, the higher your pension. Keep in mind that the statutory pension covers basic retirement needs, so many people supplement it with private savings or employer pension plans (tjänstepension).

Can I Track My Pension?

Yes! You can track your pension through the Swedish Pensions Agency’s online portal, “MinPension” (minpension.se). This tool allows you to see your contributions and check your pension status.

What Happens If I Leave Sweden?

If you move away from Sweden, you will still be entitled to your pension. You can claim your pension when you reach retirement age, even if you are no longer in Sweden. Sweden has agreements with several countries that allow for pension portability.

What are Recent Updates and Developments?

Pension Increase: In January 2025, the Swedish income pension and other supplementary pensions increased by 4%, reflecting the government's commitment to maintaining the purchasing power of pensioners.
Retirement Age Adjustments: Starting in 2023, Sweden implemented changes to the retirement age, raising the minimum age for drawing a national pension from 61 to 62, and the age for the right to remain in employment from 67 to 68. These adjustments are part of a broader strategy to ensure the sustainability of the pension system as life expectancy increases.