Every year, thousands of Swedes retire. But in recent years, it has also become increasingly common to continue working for a couple of extra years, in order to extend the pension, by becoming a so-called “job bonaire”.
In short, it is a person who withdraws parts of the pension while still having an income.
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Age pensioner? This is how you are affected by the pension system
Against the background of the 60-somethings being called the pension system’s losers, Länsförsäkringar’s pension economist has Trifa Chireh previously told News24 what she thinks about the claim, and who should really be seen as losers in the pension system.
– I believe that the introduction of a so-called reference age is a wise decision, as it mainly aims to regulate the earliest possible withdrawal of a general pension. It is less relevant if this has meant some disadvantages for the 60s and been more beneficial for previous generations.
Instead, she believes that those who are most affected by the target age are old-age pensioners who already have relatively low pension amounts.
– Raising the age limits in the pension system and also raising the limit for when you can receive lower tax on pension will be problematic for many who may not be able to work for that long.
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Not everyone is able or has the opportunity to continue working after reaching retirement age. Photo: Mickan Mörk/TT This is how the new bill can affect your pension
Pension economist Trifa Chireh now tells Nyheter24 that it is important for each individual to know what they can do with the various pension parts, how much they can take out and if and when it is possible to pause the payments, something that was previously an obstacle for many in the pension system.
– With the new bill “Flexible rules for occupational pension payments”, it will be possible to pause occupational pension payments or choose a flexible payment plan. If you do not choose to work longer than planned, you should make sure to choose an insurance company that will offer a break in payments in the most flexible way, she says and continues:
– Then you have the opportunity at the end of each year, when space is given, to stop the payments in order to create longer time and more inheritance profits and thus a relatively increased pension capital, which in turn gives an overall better monthly amount in pension.
Chireh believes that it is positive that the rules in the public pension system are now harmonized. Namely, it provides more opportunities.
– It gives the individual the opportunity to influence withdrawal levels, for example by withdrawing 20 percent or 50 percent of their pension.
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Pension economist Trifah Chireh tells you how you can increase your pension. This is how you can increase your pension
Those who consider themselves to have a low pension, or want to increase their future pension, is there anything they can do?
Trifa Chireh tells us that there is a lot you can do. Through simple tricks and increased awareness, the pension can be influenced.
Optimize your savings options:
– By managing your savings and occupational pensions, you can increase your assets and get an extra source of income during retirement. Dare to take risks and manage your savings even if the pension is being paid to avoid the money losing value due to inflation.
Reevaluate your housing situation:
– If you have had it for a long time but want to avoid the amortization requirement, you should reevaluate your housing situation. If your home has increased in value, this may mean a lower loan-to-value ratio and thus a lower amortization. It can free up a few thousand Swedish kroner a month, she explains.
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Work as a pensioner:
– If you have the energy and opportunity to continue working extra after age 66, you get the financial advantage of combined work and pension. It is very tax-advantaged and you thus get to keep more of the capital earned each month. You also continue to earn for the pension. You also get the social part by keeping colleagues and well-being. Watch out for back taxes when you work and draw your pension at the same time. Be sure to keep track and ask your employer or pension provider to deduct more tax.
Collect your insurances:
– To lower the fees on, for example, occupational pensions, try to collect and move everything to one and the same insurance company. Check if you have any occupational pensions from previous employers for which premiums are no longer paid. They are called free letters and these days can often be moved. This provides both a better overview and lower fees. It works similar to combining loans to get a better interest rate.
Review the refund protection:
– If you have an occupational pension and do not need the repayment protection, consider removing it to increase your pension by up to ten percent. Especially if you have separated, you must actively remove the repayment protection to increase your pension, Trifa Chireh concludes by telling Nyheter24.
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