The National basic pension is for those born in 1938 or later. It consists
of the income/supplementary pension, the premium pension and guarantee pension
and is administered by the Swedish Social Insurance Agency and the Premium
Pension Authority (PPM).
The pension is based on what your income has been during your working life
so if you have worked for a long time and earned a lot, you will receive a higher
pension. Similarly, you will receive less pension if your income has been low.
18.5% of your income is paid into the pension system, 16% to the income pension
and 2.5% to the premium pension. You also receive pension entitlements for sickness
benefit, parental benefit, unemployment benefit, and sickness and activity compensation.
You get additional pension entitlements for years when your children were small,
when you were studying or doing national service. You can start drawing your
pension from the age of 61. The longer you wait and continue to earn pension
entitlements, the higher your pension will be. You can also choose to take out
full, three-quarters, half or one-quarter pension. As long as you have an income,
you will continue to earn pension entitlements, regardless of whether or not
you draw your pension.
The old age pension is taxed. In the case of persons born between 1938 and
1953, supplementary pension forms part of the income pension. When you retire
the amount of your state pension will partly be determined by the typical life
expectancy of your age group, so the older you are, the larger the proportion
of income pension you get as a supplementary pension.
2.5 per cent of your pensionable income goes towards your premium pension.
For those born between 1938 and 1953 this percentage is less. You may choose
to invest your pension capital in any of the various funds registered with the
Premium Pension Authority. If you decide not to choose your own investments,
the money will be invested in the Premium Saving Fund administered by the 7th
Pension Insurance Fund. Married or registered couples can transfer their pension
entitlements to each other. On retirement, the pension is calculated basically
in the same way as income pension.
If you have had a low or no income during your life, you may be entitled to
the guarantee pension. To qualify, you must have been resident in Sweden for
at least three years. To qualify for the full guarantee pension, you must have
been resident in Sweden for 40 years. An exception may be made in the case of
refugees. The guarantee pension is payable from the age of 65.
Those with pension points for only one or two years of residence in Sweden
may be credited with insurance periods accumulated elsewhere in the EU/EEA or
in countries with which Sweden has a convention. The size of the supplementary
pension you get depends on how many years you have worked and how much you have
earned each year.
You may be able to get a widow’s pension and guarantee pension if your spouse
has died.
Children under the age of 18 are entitled to child pension on the death of
one or both of their parents. Child pension is also payable to children over
18 provided they are studying at compulsory school, upper secondary school or
a similar establishment. If you have given up work for at least six years in
order to care for a sick or disabled child you may be able to get a special
pension supplement.
You can read more about pensions on the website of the Swedish Social Insurance
Agency:
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