The government’s compensation to 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/TT
At the turn of the year, the retirement age was raised, which affected around 110,000 Swedes born in 1957.
One change was the increased basic deduction that previously applied from the age of 66, but which now applies from the year you turn 67.
The change meant that all pensioners born in 1957 had to wait an extra year for the tax reduction, which in many cases meant several thousand kroner more in taxes every month.
The pension will be increased substantially in 2024 – that’s how much more money you will get
What happens to the pension for those born in 1957?
On Saturday, the government announced that the 57 will be compensated for this tax miss. The compensation amounts to SEK 3.2 billion and will begin to be paid on July 1, 2024.
Here you can read more about the compensation for the 57s.
“Overall, the investment will correspond to the tax effect of the increased basic deduction. We will come back to the exact design,” Tidöpartierna writes in a debate post on The evening paper.
According to the pensioners’ organization, the non-existent tax reduction has meant that a newly retired person born in 1957 has paid an average of SEK 2,000 more per month in taxes, and a person who has worked has paid an average of SEK 3,000 more per month.
Money that must now be paid back.
Pensioner? Here is the supplement that can give you SEK 7,290 more per month