In Sweden, there are half a million members of the Kommunal trade union who work in everything from health care, restaurants, schools or other professions within socially necessary functions.
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Popular to be a “municipalist”
Being a municipal employee in Sweden is both common and popular. Not least considering that it can often be reassuring to be employed within a municipality, region or county council as it often results in long-term employment, relatively good benefits and wages and the opportunity for further education or skills training.
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This is how the pension affects you as a municipal employee
However, those who are municipally employed and choose to retire earlier than other colleagues may have a poor future as a pensioner. The reason is that those who stop working at the age of 64 receive almost SEK 2,000 less in pension for life compared to those who work until the age of 67, the newspaper writes The municipal worker.
They report that the vast majority of municipal employees receive part of their pension as a guarantee pension, which includes an increased basic deduction that applies from January 1, 2025. This results in an assistant nurse who retired early receiving a couple of thousand extra in pension when he turns 67, and a little more at 68.
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Municipal employee? Then there is a difference of SEK 2,300 in pension
But those who choose to continue working despite reaching retirement age, up to age 67, earn a lot more as they continue to earn pension rights while they work.
The municipal worker explains that in their calculation example they show that the assistant nurse who retired at the age of 64 receives just over SEK 14,300 after tax from the year she turns 68.
Those who instead started drawing the pension at age 67 will receive around SEK 16,600 after tax at the age of 68 – SEK 2,300 more than those who draw the pension at age 64.
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