The general pension

The general pension is based on your life’s earnings. Everything you earn and on which you pay tax, up to a certain ceiling, is pensionable. You may also receive a pension on account of payments you have received from the Unemployment Insurance Fund, sickness allowances and parental allowances, and also when you are looking after your children, studying or doing military service. 

The general pension comprises three components: income pension, premium pension and, for some, a guarantee pension. 

How much you receive in general pension depends on how long you worked, how much you earned, when, the premium pension funds you selected, as well as the Swedish economy. 

You may also receive a pension from more than one source. 90% of all employees receive an occupational pension from their employers, and many also have private pension schemes. The funds of one do not affect the other. The total is your pension. 

The general pension contribution is paid as part of your tax on your earnings. Other contributions to the pension scheme are paid in the form of employer contributions. 

You can choose yourself when you wish to retire, from 61 years of age and over. The later you decide to draw your pension, the higher that pension will be. 

In principle, all pensions are treated as taxable earnings. 

Occupational pension
The employer or your pension company will be able to provide you with details of the size of your pension. 

Premium pension
2.5% of pensionable earnings are earmarked for the premium pension, which may be invested in accordance with your own wishes. The growth of the funds you choose will have a bearing on the size of your pension. 

Guarantee pension
The guarantee pension is a pension for those on low incomes or with no income at all. Those resident in Sweden for at least three years are entitled to the guarantee pension from the age of 65. To be entitled to full guarantee pension you must have been resident in Sweden for 40 years. EU citizens who have resided in one (or more) other Member States may count their time in those countries. 

Pensioners with low incomes may also receive a means-tested housing supplement. 

Survivor’s pension
If you are a relative of someone who is deceased, you may be entitled to certain social insurance benefits, namely children’s pension, conversion pension and widow’s pension. You may also be able to obtain a work injury annuity for survivors and a funeral allowance if the death was caused by a work injury or an accident on the way to or from work. 

Conversion pension
You may be able to get a conversion pension if your spouse has died. It is paid for ten months to men or women below the age of 65. If you are living with a child under the age of 18, the pension is payable for another 12 months. 

Widow’s pension
You may be able to get widow’s pension if your spouse has died. You must fulfil certain conditions. 

Children’s pension and survivor’s support for children
Children under the age of 18 are entitled to children’s pension on the death of one or both of their parents. 

In principle, pensions are taxable in their entire amount.

Text last edited on: 11/2009