One of the government’s investments in the autumn budget, which will be presented on September 20, will be to repay the “57s”. From 1 July next year, a payment will begin to those affected by the tax miss.
The compensation amounts to a total of SEK 3.2 billion.
– We must make this as right and fair as possible, both the pension system and the tax system are complicated systems. We will return to the technology, but you should know that we will do everything we can to make this as right as possible, says Finance Minister Elisabeth Svantesson (M) to TT.
Thousands more in tax
The background to the situation that affected around 110,000 Swedes born in 1957 is the increases in various pension-related ages that were introduced on 1 January this year.
One change was the increased basic deduction, which now applies from the year a person turns 67, not from 66 as before. Usually transitional provisions are created for those who have already reached the age under a previous set of regulations – but not in this case.
The consequence has been that all people born in 1957 have to wait another year for the tax reduction – even though they are counted as pensioners in other respects.
According to pensioner organisations, this is on average about SEK 2,000 more in taxes each month. For someone who is still working, an average of SEK 3,000.
Apologies from the Swedish Pensions Agency
Affected pensioners, pensioner organizations and trade unions have long protested and demanded that the “57” be compensated for the loss.
At the beginning of the year, the Pensions Agency sent out a letter to the cohort in which the agency regretted that in its consultation response they had not informed the government about the effects of the bill.
Svantesson does not want to place the blame on anyone, but states that the raising of the retirement age to 66 was handled in a very bad way.
– They (the 57) have had to wait an unreasonably long time for the tax reduction to which they are entitled. Many have been upset and angry and I understand that, and therefore I have devoted a lot of time to this, says Svantesson.
Shoots on the next raise
Many have warned that the dilemma with the increased basic deduction would repeat itself for people born in 1959. Namely, in 2026 the age limit to take part in the tax relief will be raised once again, to 68 years.
To deal with the problem, the government chooses to postpone the increase by one year to January 1, 2027. The change is estimated to mean reduced tax revenue by SEK 3.4 billion in 2026.
– We are already reserving that now in order to be able to do this and so that the 59s don’t end up in a pinch, says Svantesson.
According to Svantesson, the investments and the change in tax legislation have not been anchored in the pension group.
– My view is that all parties want to correct this, even if it has not been in other parties’ budgets. I think this is something that all parties, both those in the pension group and those outside, will appreciate, she says.
Facts: The government’s compensation for the “57s”
Persons born in 1957 are compensated by payment to the tax account from 1 July 2024. No application procedure is required. The compensation is estimated to amount to SEK 3.2 billion and cover approximately 110,000 people.
In order to prevent people born in 1959 from ending up in the same position, the government postpones the next increase in the age limit for entitlement to the increased basic deduction until January 1, 2027. This is estimated to mean reduced tax revenues of SEK 3.4 billion in 2026.
Source: Government