Sweden: Retirement age increases
The minimum retirement age for state pension benefits in Sweden has increased to age 62, with further increases scheduled in 2023 and 2026. However, individuals now have the right to remain employed until age 68.
With effect from 1 January 2020 Sweden implemented amendments to its social security law that gradually increase the country’s retirement age and change how future retirement age adjustments will be made. The changes affect the contributory state pensions (the income pension and the premium pension), and the non-contributory guarantee pension (“garantipension”).
Phased increase in minimum retirement age for state pensions
The minimum retirement age for the contributory state pension benefits increased from age 61 to age 62 on 1 January 2020. It will rise to age 63 in 2023 and then to age 64 in 2026.
The minimum age to receive the guarantee pension will increase from age 65 currently to age 66 in 2023 and then to age 67 in 2026.
Approach for future retirement age increases
From 2026 the state retirement ages will be adjusted in line with a target age (“riktålder”). Broadly, the minimum retirement ages will automatically increase by two-thirds of the amount by which the average life expectancy in Sweden has increased, with a six year delay. (This means the target age calculated for 2020 is used to set retirement ages in 2026.) While the target age will be reviewed annually, the minimum retirement age can only be increased once every three years to limit the frequency of future changes.
Increase in age limit for right to remain in employment
The age at which employment protection ends has also been increased from age 67 to age 68 with effect from 1 January 2020. It will increase to age 69 in 2023. (Retirement is usually compulsory at this age unless an employer agrees to extend the individual’s employment contract.)
Contacts
Isabel Coles
Head of International Consulting, MBWL International
VIEW PROFILE
Email:
isabel.coles@mbwl-int.com
Tel: +44 20 3949 5710
Isabel Coles
Head of International Consulting, MBWL International
A multilingual expert in employee benefits for multinational corporates.
Isabel heads up MBWL International, advising multinational organisations on their employee benefits arrangements around the world, with a focus on corporate sales and purchases, accounting disclosures and the financing, risk management and design of benefit plans.
Her vast experience includes leading global accounting consolidations under international, UK and US accounting standards for multinational companies headquartered in the UK and overseas – with consolidations ranging in size from two to over 50 defined benefit plans.
She has advised both corporate and private equity buyers on the employee benefit considerations (including pension liabilities) associated with corporate sales and purchases in Europe and worldwide, from due diligence through to closing and subsequent integration work. Isabel has also undertaken many benefit audits and benchmarking exercises, including a 25-country audit for a company in the technology sector.
Other areas of Isabel’s expertise include reviewing and establishing international pension plans, advice on individual expatriate employee benefit packages and supporting multinationals in agreeing and implementing global governance approaches and policies for managing their employer benefit plans.
Isabel chairs the International Committee of the Association of Consulting Actuaries and is fluent in German and French.
Contacts
Isabel Coles
Head of International Consulting, MBWL International
VIEW PROFILE
Email:
isabel.coles@mbwl-int.com
Tel: +44 20 3949 5710
Isabel Coles
Head of International Consulting, MBWL International
A multilingual expert in employee benefits for multinational corporates.
Isabel heads up MBWL International, advising multinational organisations on their employee benefits arrangements around the world, with a focus on corporate sales and purchases, accounting disclosures and the financing, risk management and design of benefit plans.
Her vast experience includes leading global accounting consolidations under international, UK and US accounting standards for multinational companies headquartered in the UK and overseas – with consolidations ranging in size from two to over 50 defined benefit plans.
She has advised both corporate and private equity buyers on the employee benefit considerations (including pension liabilities) associated with corporate sales and purchases in Europe and worldwide, from due diligence through to closing and subsequent integration work. Isabel has also undertaken many benefit audits and benchmarking exercises, including a 25-country audit for a company in the technology sector.
Other areas of Isabel’s expertise include reviewing and establishing international pension plans, advice on individual expatriate employee benefit packages and supporting multinationals in agreeing and implementing global governance approaches and policies for managing their employer benefit plans.
Isabel chairs the International Committee of the Association of Consulting Actuaries and is fluent in German and French.