Pensioner? Do this and avoid residual tax – no later than November 10

Pensioner Do this and avoid residual tax no later

In Sweden, there are several million people who live as pensioners after a long working life.

In January 2023 there was, according to The Pensions Authority2.3 million people who had a public pension.

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Pension facts

The average total pension before tax for residents in Sweden is SEK 21,600 per month. For men, the sum is SEK 25,500 per month and for women only SEK 18,200 per month.

This means that women’s total pension amounts correspond to 73 percent of men’s.

  • Average change in the total pension after tax in 2024: SEK 490-1,530 per month.
  • Number of pensioners with housing allowance in 2024: 306,500
  • Number of pensioners with old-age support in 2024: 24,500
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    That’s how much Swedes get in the general pension

    In the summer of 2024, the authority also released figures showing how much the average public pension before tax is.

    The total then landed at SEK 15,600 per month. And the big difference was visible between men and women. Namely, men receive an average of SEK 16,700 per month in general pension, while women only receive SEK 14,500 per month – SEK 1,200 less.

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    Newly retired people risk arrears of tax

    Every year, many people retire and become so-called “new pensioners”. But the fact is that many of them also risk receiving back taxes, or residual taxes as it is also called.

    With this as a background, the Swedish Pensions Agency has now gone out and informed mainly new pensioners about the reason. In addition, they urge you as a newly retired person to act in order not to risk a tax hit at the next tax return.

    “Pensioners often receive their pension from several different payers. Some pensioners also continue to work, which can make it more complicated to calculate the tax,” they write on the website.

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    The pension authority’s call involves avoiding residual tax. Photo: Jonas Ekströmer/TTPensionsmyndigheten: You should do that

    With the background of the risk many newly retired people run of getting a tax hit, the authority has now addressed a call to you who may be affected.

    The Pension Authority’s pension specialist, Agneta Claessonsays namely in one press release that you can apply for tax equalization so that more tax is deducted from your pension. In this way, you reduce the risk of going into arrears.

    – The occupational pension companies usually deduct the same percentage in tax for everyone. This may mean that too little tax is deducted overall, which in turn results in back taxes. Anyone who is worried about receiving back taxes can ask the Pensions Authority to deduct extra tax on the pension payment. It can be done easily by logging on to pensionsmyndigheten.se, she says.

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    Tax cut? Apply no later than November 10

    If you want to adjust the tax, you can request it from the Swedish Tax Agency. This can be an advantage for you who have high interest deductions. Then tax equalization can be a way to pay less in taxes during the year and then get back more in refunds when the declaration drops into the mailbox.

    Åsa Ekströmtax officer at the Swedish Tax Agency, emphasizes the importance of checking what applies to you.

    – Remember to check what applies to you in particular so that you don’t have to pay back tax later. You can do that easily on the Tax Agency’s website, where there is an e-service to calculate your tax, she says.

    If you want to apply for tax equalization, you should act as soon as possible. In order for the decision to apply from 1 January 2025, you need to make the application by 10 November at the latest.

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    An application for tax equalization is made to the Swedish Tax Agency. Photo: Henrik Montgomery/TT

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