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Sweden
| Total population (m.): | 9.3 |
| GDP per capita (USD): | 36712 |
Old Age, Disability and Survivors
Regulatory Framework
First law: 1913.
Current laws: 1962 (National Insurance Act No. 381 of 25 April), with amendments; 1998 (Law No. 702 of 11 June, governing the guarantee pension); 1998 (Law No. 674 of 11 June, governing the income-based old-age pension), implemented in 1999, with 2002 (No. 981) amendment; 2000 (Law No. 461 of 8 June, governing survivor pensions and surviving children's allowance); and 2008 (Law No. 480 on sickness benefits), with 2008 amendment.
Type of program: Universal and social insurance system (old system) and universal, notional defined contribution, and mandatory individual accounts system (new system).
Current laws: 1962 (National Insurance Act No. 381 of 25 April), with amendments; 1998 (Law No. 702 of 11 June, governing the guarantee pension); 1998 (Law No. 674 of 11 June, governing the income-based old-age pension), implemented in 1999, with 2002 (No. 981) amendment; 2000 (Law No. 461 of 8 June, governing survivor pensions and surviving children's allowance); and 2008 (Law No. 480 on sickness benefits), with 2008 amendment.
Type of program: Universal and social insurance system (old system) and universal, notional defined contribution, and mandatory individual accounts system (new system).
Coverage
Earnings-related pension (old system): All employed and self-employed persons born in 1937 or earlier and earning more than 43,300 kronor a year.
There is a gradual transition from the old to the new system for persons born between 1938 and 1953.
Earnings-related pension (new system): All employed and self-employed persons born in 1954 or later and earning more than 17,935 kronor a year.
Premium pension (new system): All employed and self-employed persons earning more than 17,935 kronor a year.
Guarantee pension (old and new systems): All persons residing in Sweden.
There is a gradual transition from the old to the new system for persons born between 1938 and 1953.
Earnings-related pension (new system): All employed and self-employed persons born in 1954 or later and earning more than 17,935 kronor a year.
Premium pension (new system): All employed and self-employed persons earning more than 17,935 kronor a year.
Guarantee pension (old and new systems): All persons residing in Sweden.
Source of funds
Insured person: 7% of assessable income for old-age insurance; no contribution for the survivor pension.
The maximum annual income used to calculate contributions is 412,377 kronor.
In addition, insured persons covered by the new system pay administrative fees for the premium pension (an average of 0.5% of assets in 2009).
Self-employed person: 7% of assessable income plus 10.21% of assessable income for old-age insurance; 1.7% of assessable income for the survivor pension.
The maximum annual income used to calculate contributions is 412,377 kronor.
In addition, self-employed persons covered by the new system pay administrative fees for the premium pension (an average of 0.5% of assets in 2009).
Employer: 10.21% of payroll for old-age insurance plus 1.7% of payroll for the survivor pension.
Of the total contributions (insured person and employer plus a small government payment for government employee pension rights for child care years, national service, and study periods), 16% finances the earnings-related component and 2.5% finances the premium pension component.
Government: The total cost of the guarantee pension (new system) and permanent disability benefits. The government pays earnings-related contributions for central government civil servants.
The maximum annual income used to calculate contributions is 412,377 kronor.
In addition, insured persons covered by the new system pay administrative fees for the premium pension (an average of 0.5% of assets in 2009).
Self-employed person: 7% of assessable income plus 10.21% of assessable income for old-age insurance; 1.7% of assessable income for the survivor pension.
The maximum annual income used to calculate contributions is 412,377 kronor.
In addition, self-employed persons covered by the new system pay administrative fees for the premium pension (an average of 0.5% of assets in 2009).
Employer: 10.21% of payroll for old-age insurance plus 1.7% of payroll for the survivor pension.
Of the total contributions (insured person and employer plus a small government payment for government employee pension rights for child care years, national service, and study periods), 16% finances the earnings-related component and 2.5% finances the premium pension component.
Government: The total cost of the guarantee pension (new system) and permanent disability benefits. The government pays earnings-related contributions for central government civil servants.
Qualifying conditions
Guarantee pension (old and new systems): Age 65, a resident of Sweden for at least 3 years, and receiving low or no income from earnings-related pensions.
Pensions are payable abroad only within the European Union and European Economic Area and, under certain conditions, in Canada.
Earnings-related old-age pension (old system): Age 65 with at least 3 years of coverage.
The full pension requires at least 30 years of coverage.
Early pension: A reduced pension may be paid from age 61 to 64.
Deferred pension: The pension may be deferred until age 70.
Pensions are payable abroad.
Earnings-related old-age pension (new system): The retirement age is flexible, beginning at age 61. The pension is based on lifetime earnings reported to the system. The insured must have years with annual earnings in excess of 17,935 kronor.
Pensions are payable abroad.
Premium pension (new system): The retirement age is flexible, beginning at age 61.
Pensions are payable abroad.
Disability pension (sickness compensation): The insured must have an assessed loss of work capacity of at least 25% and be covered when the disability began. The disability pension consists of a guarantee and an earnings-related pension.
Guarantee pension: The insured must have at least 3 years of coverage. The pension is based on residence and is payable abroad only within the European Union and European Economic Area, Switzerland, and, under certain conditions, in Canada.
Earnings-related pension: The insured must have at least 1 year of income in Sweden within a given period. The pension is payable abroad.
Constant-attendance supplement: Paid if the insured requires the constant attendance of others to perform daily functions.
Survivor pension: The widow(er)'s pension consists of a guarantee and an earnings-related pension.
Guarantee pension: The deceased must have resided in Sweden for at least 3 years.
The maximum guarantee benefit is paid if the deceased lived in Sweden for at least 40 years (including between age 65 and the age at death) and the surviving spouse does not receive an earnings-related pension.
Eligible survivors are a spouse younger than age 65 who was married to or, under certain conditions, cohabited with the deceased for at least 5 years.
The pension ceases on remarriage (or on cohabiting under certain conditions) or when the survivor reaches age 65.
The guarantee element is payable abroad only within the European Union and European Economic Area and, under certain conditions, in Canada.
Earnings-related pension: The pension is based on the deceased's accrued old-age pension rights and is payable abroad.
Eligible survivors are a widow(er) younger than age 65 who was married to or, under certain conditions, cohabited with the deceased for at least 5 years or who at the time of the insured's death was rearing a child younger than age 18.
The pension ceases on remarriage (or on cohabiting under certain conditions) or when the survivor reaches age 65.
Surviving child's benefit: Paid to a surviving child up to age 18 (age 20 if a student) who is not receiving an orphan's pension.
Orphan's pension (child pension): Paid to a surviving child up to age 18 (age 20 if a student).
Widow's pension: Transitional rules apply to widows born before 1945 who were married to the deceased before 1990.
Pensions are payable abroad only within the European Union and European Economic Area and, under certain conditions, in Canada.
Earnings-related old-age pension (old system): Age 65 with at least 3 years of coverage.
The full pension requires at least 30 years of coverage.
Early pension: A reduced pension may be paid from age 61 to 64.
Deferred pension: The pension may be deferred until age 70.
Pensions are payable abroad.
Earnings-related old-age pension (new system): The retirement age is flexible, beginning at age 61. The pension is based on lifetime earnings reported to the system. The insured must have years with annual earnings in excess of 17,935 kronor.
Pensions are payable abroad.
Premium pension (new system): The retirement age is flexible, beginning at age 61.
Pensions are payable abroad.
Disability pension (sickness compensation): The insured must have an assessed loss of work capacity of at least 25% and be covered when the disability began. The disability pension consists of a guarantee and an earnings-related pension.
Guarantee pension: The insured must have at least 3 years of coverage. The pension is based on residence and is payable abroad only within the European Union and European Economic Area, Switzerland, and, under certain conditions, in Canada.
Earnings-related pension: The insured must have at least 1 year of income in Sweden within a given period. The pension is payable abroad.
Constant-attendance supplement: Paid if the insured requires the constant attendance of others to perform daily functions.
Survivor pension: The widow(er)'s pension consists of a guarantee and an earnings-related pension.
Guarantee pension: The deceased must have resided in Sweden for at least 3 years.
The maximum guarantee benefit is paid if the deceased lived in Sweden for at least 40 years (including between age 65 and the age at death) and the surviving spouse does not receive an earnings-related pension.
Eligible survivors are a spouse younger than age 65 who was married to or, under certain conditions, cohabited with the deceased for at least 5 years.
The pension ceases on remarriage (or on cohabiting under certain conditions) or when the survivor reaches age 65.
The guarantee element is payable abroad only within the European Union and European Economic Area and, under certain conditions, in Canada.
Earnings-related pension: The pension is based on the deceased's accrued old-age pension rights and is payable abroad.
Eligible survivors are a widow(er) younger than age 65 who was married to or, under certain conditions, cohabited with the deceased for at least 5 years or who at the time of the insured's death was rearing a child younger than age 18.
The pension ceases on remarriage (or on cohabiting under certain conditions) or when the survivor reaches age 65.
Surviving child's benefit: Paid to a surviving child up to age 18 (age 20 if a student) who is not receiving an orphan's pension.
Orphan's pension (child pension): Paid to a surviving child up to age 18 (age 20 if a student).
Widow's pension: Transitional rules apply to widows born before 1945 who were married to the deceased before 1990.
Cash benefits for insured workers (except permanent disability)
Guarantee pension (old and new systems): If born in 1938 or later, 90,312 kronor a year is paid for a single pensioner (80,560 kronor for a married pensioner) with at least 40 years of residence and without an earnings-related pension. If born in 1937 or earlier, 92,491 kronor a year is paid for a single pensioner (82,400 kronor for a married pensioner).
Old-age pensions are subject to taxation.
Benefit adjustment: Benefits are adjusted annually according to changes in prices.
Earnings-related old-age pension (old system): The pension is 60% of the insured's average income above 43,300 kronor in the 15 best years of income. Income in years in which earnings were below 43,300 kronor is compensated at 96% for an unmarried pensioner; 78.5% for a married pensioner.
The average income level used to calculate benefits varies from year to year.
The pension is reduced proportionately for periods of coverage of less than 30 years.
Early pension: The pension is permanently reduced by 0.5% for each month the pension is taken before age 65.
Deferred pension: The pension is permanently increased by 0.7% for each month that the pension is deferred from age 65 to age 70.
Old-age pensions are subject to taxation.
Benefit adjustment: Benefits are adjusted annually according to changes in wages.
Earnings-related old-age pension (new system): The NDC pension is based on an annual index of trends in average wages (disability pension payments are counted as earnings), an annuity factor depending on average life expectancy at the time of retirement for the appropriate age cohort (based on the most recent 5-year average of unisex life expectancy projections), and the expected increase of average wages in future years (1.6%).
Benefit adjustment: Benefits are adjusted annually according to changes in wages.
Premium pension (new system): The pension is based on contributions plus net returns converted into an individual, joint, fixed, or variable annuity.
Benefit adjustment: Benefits are adjusted annually according to changes in wages.
Old-age pensions are subject to taxation.
Benefit adjustment: Benefits are adjusted annually according to changes in prices.
Earnings-related old-age pension (old system): The pension is 60% of the insured's average income above 43,300 kronor in the 15 best years of income. Income in years in which earnings were below 43,300 kronor is compensated at 96% for an unmarried pensioner; 78.5% for a married pensioner.
The average income level used to calculate benefits varies from year to year.
The pension is reduced proportionately for periods of coverage of less than 30 years.
Early pension: The pension is permanently reduced by 0.5% for each month the pension is taken before age 65.
Deferred pension: The pension is permanently increased by 0.7% for each month that the pension is deferred from age 65 to age 70.
Old-age pensions are subject to taxation.
Benefit adjustment: Benefits are adjusted annually according to changes in wages.
Earnings-related old-age pension (new system): The NDC pension is based on an annual index of trends in average wages (disability pension payments are counted as earnings), an annuity factor depending on average life expectancy at the time of retirement for the appropriate age cohort (based on the most recent 5-year average of unisex life expectancy projections), and the expected increase of average wages in future years (1.6%).
Benefit adjustment: Benefits are adjusted annually according to changes in wages.
Premium pension (new system): The pension is based on contributions plus net returns converted into an individual, joint, fixed, or variable annuity.
Benefit adjustment: Benefits are adjusted annually according to changes in wages.
Permanent disability benefits for insured workers
Guarantee sickness compensation (disability pension): 101,760 kronor a year is paid for an insured person with at least 40 years of residence and without an earnings-related benefit. The pension is reduced by 2.5% for each year of residence less than 40.
A reduced pension is paid at 75%, 50%, or 25% of the full pension according to the assessed degree of disability.
Constant-attendance supplement: Up to 27,117 kronor a year is paid.
Benefit adjustment: Benefits are adjusted annually according to changes in prices.
Earnings-related sickness compensation (disability pension): The pension is 64% of the insured's assumed future annual income.
The maximum annual income used to calculate benefits is 318,000 kronor.
Assumed future income is based on the average of the 3 best income years within a given period immediately before the year of the claim.
The maximum annual benefit is 190,560 kronor.
Benefit adjustment: Benefits are adjusted annually according to changes in prices.
A reduced pension is paid at 75%, 50%, or 25% of the full pension according to the assessed degree of disability.
Constant-attendance supplement: Up to 27,117 kronor a year is paid.
Benefit adjustment: Benefits are adjusted annually according to changes in prices.
Earnings-related sickness compensation (disability pension): The pension is 64% of the insured's assumed future annual income.
The maximum annual income used to calculate benefits is 318,000 kronor.
Assumed future income is based on the average of the 3 best income years within a given period immediately before the year of the claim.
The maximum annual benefit is 190,560 kronor.
Benefit adjustment: Benefits are adjusted annually according to changes in prices.
Survivors benefits for dependents
Guarantee survivor pension: A pension is paid to an eligible widow(er), up to 90,312 kronor a year.
Survivor benefits are subject to taxation.
Benefit adjustment: Benefits are adjusted annually according to changes in the consumer price index.
Earnings-related survivor pension: The pension is 55% of the deceased's accrued pension rights under the old-age pension system.
The pension is paid to an eligible spouse for 12 months. If the survivor has custody of a child younger than age 18, the pension is extended for 12 months. If the survivor has custody of a child or children younger than age 12, the pension continues until the youngest child reaches age 12.
Benefit adjustment: Benefits are adjusted annually according to changes in wages.
Surviving child's benefit: 16,960 kronor a year is paid to a surviving child up to age 18 (age 20 if a student) who is not receiving an orphan's pension.
Benefit adjustment: Benefits are adjusted annually according to changes in the consumer price index.
Orphan's pension (child pension): The pension is 35% (for a child younger than age 12) or 30% of the deceased's accrued pension rights under the old-age pension system. The pension is increased by 25% (for a child younger than age 12) or 20% per child if there is more than one orphan, and the total amount is split equally among the children.
All orphans' benefits combined must not exceed 100% of the deceased's pension. If an adult is receiving an earnings-related survivor pension or widow's pension, all orphans' benefits combined must not exceed 80% of the deceased's pension.
Benefit adjustment: Benefits are adjusted annually according to changes in wages.
Widow's pension: Transitional rules apply to widows born before 1945 who were married to the deceased before 1990.
Survivor benefits are subject to taxation.
Benefit adjustment: Benefits are adjusted annually according to changes in the consumer price index.
Earnings-related survivor pension: The pension is 55% of the deceased's accrued pension rights under the old-age pension system.
The pension is paid to an eligible spouse for 12 months. If the survivor has custody of a child younger than age 18, the pension is extended for 12 months. If the survivor has custody of a child or children younger than age 12, the pension continues until the youngest child reaches age 12.
Benefit adjustment: Benefits are adjusted annually according to changes in wages.
Surviving child's benefit: 16,960 kronor a year is paid to a surviving child up to age 18 (age 20 if a student) who is not receiving an orphan's pension.
Benefit adjustment: Benefits are adjusted annually according to changes in the consumer price index.
Orphan's pension (child pension): The pension is 35% (for a child younger than age 12) or 30% of the deceased's accrued pension rights under the old-age pension system. The pension is increased by 25% (for a child younger than age 12) or 20% per child if there is more than one orphan, and the total amount is split equally among the children.
All orphans' benefits combined must not exceed 100% of the deceased's pension. If an adult is receiving an earnings-related survivor pension or widow's pension, all orphans' benefits combined must not exceed 80% of the deceased's pension.
Benefit adjustment: Benefits are adjusted annually according to changes in wages.
Widow's pension: Transitional rules apply to widows born before 1945 who were married to the deceased before 1990.
Administrative organization
Swedish Pensions Agency (http://www.pensionsmyndigheten.se) administers the old-age and survivor's programs.
Swedish Pensions Agency
PO Box 38190,
SE-100 64 Stockholm,
Sweden
Tel.: +46 771 771 771
Email: registrator@pensionsmyndigheten.se
Self-employed persons and employers pay contributions with income tax.
Swedish Social Insurance Agency (http://www.forsakringskassan.se) provides central administration and supervision for the disability program.
Swedish Social Insurance Agency
SE-103 51 Stockholm,
Sweden
Tel.: +46 8 786 90 00
Fax: +46 8 21 66 46
Regional and local social insurance bodies administer the disability program.
Swedish Pensions Agency
PO Box 38190,
SE-100 64 Stockholm,
Sweden
Tel.: +46 771 771 771
Email: registrator@pensionsmyndigheten.se
Self-employed persons and employers pay contributions with income tax.
Swedish Social Insurance Agency (http://www.forsakringskassan.se) provides central administration and supervision for the disability program.
Swedish Social Insurance Agency
SE-103 51 Stockholm,
Sweden
Tel.: +46 8 786 90 00
Fax: +46 8 21 66 46
Regional and local social insurance bodies administer the disability program.
Last survey reply: 01 January 2010
Last ISSA update: 01 January 2010
Exchange rate: US$1.00 equals 7.12 kronor.