SWEDEN – Retirement age increases
Isabel Coles | 6 January 2020
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.)