The Swedish Parliament has reformed the country’s statutory pensions. As of 2020, the retirement age in Sweden will rise gradually. The Swedish Parliament has also decided to continue the payments of the residence-based guaranteed pension to EU/EEA countries and Switzerland until the end of 2020.
Rising retirement age
The planned raising of the retirement age was approved by the Swedish Parliament on 16 October 2019. In 2020, the retirement age for the earnings-related old-age pension will rise from the current 61 years to 62 years, and in 2023 to 63 years. In 2026, the retirement age will rise to 64 years. After that, it will be linked to life expectancy.
The right to continue working after reaching the retirement age will also be extended. In 2020, the age after which pension no longer accrues will rise from 67 years to 68 years, and by 2023, to 69 years.
Swedish guaranteed pension paid abroad at least until end of 2020
The Court of Justice of the European Union issued a decision in 2017 according to which the Swedish guaranteed pension is classified as a minimum benefit that can be paid only to persons residing in Sweden.
The guaranteed pension has been paid to EU/EEA countries and Switzerland in 2019 based on a temporary act. On 16 October 2019, the Swedish Parliament decided to extend the validity period of the temporary act. Guaranteed pensions will therefore be paid to EU/EEA countries and Switzerland until the end of 2020.
It has not yet been decided whether the Swedish guaranteed pension will be paid abroad as of 1 January 2021. What is known, however, is that the qualifying age limit for the guaranteed pension will rise gradually from 65 to 67 in the future. After that the age limit will be linked to life expectancy.
Changes in Swedish pension amounts in 2020
The Swedish statutory pensions will be slightly raised as of the beginning of 2020. How much they will rise depends on the pension benefit. The Swedish earnings and supplementary pension is raised by 2.1 per cent and the guaranteed pension by 1.7 per cent.
The value of the premium pension varies depending on the selected funds and the situation on the fund markets.
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