There are many people who long to retire, but becoming a pensioner is far from a bed of roses. In fact, many people continue to work after they can retire because the pension is so low.
These are called job holders and they make up more than a quarter of a million Swedes – more precisely 261,000.
Now the association SPF Seniors has come up with a worrying message. The so-called target age, i.e. the age at which you can take out various benefits in connection with the pension, is miscalculated.
The target age is constantly adjusted according to rising average life expectancies and aims to prevent the pension from being lower just because people are getting older.
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SPF Seniors: The target age is not enough
The standard age that is calculated for people in their 60s and 70s is incorrect, according to SPF Seniors. Their calculations show that these generations will need to work longer than their retirement age to achieve a reasonable pension.
– If wage earners born in the 60s and 70s want a general pension of around 60 percent of their final salary, they need to work two years longer than their standard age (67, 68 years), i.e. until 69 and 70 years, respectively, says Anna Erikssonexpert at SPF Seniors, to News24.
Few believe they will work until they reach their retirement age. Photo: Fredrik Sandberg/TT.
Eriksson says that today’s standard age for people in their 60s and 70s will not result in higher pensions, something she thinks the politicians should be clear about.
– Working until the target age will therefore not give higher pensions than we have today but the same, with half the final salary in general pension, says Eriksson and continues:
– However, the purpose of introducing a standard age has not been to raise pensions, this is stated in the investigations that preceded its introduction. Here the policy needs to be clearer and say that working until the target age gives a general pension of half one’s final salary.
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Few believe they will work until their retirement age
Anna Eriksson at SPF The seniors do not believe that everyone will be able to work until their retirement age as it is constantly being raised.
There is much that needs to be done.
– Powerful work environment initiatives are needed already now so that the majority can at least manage to work until their legal age. But working until the target age is not enough, says Eriksson and continues:
– In order to reach a reasonable public pension, i.e. 60 percent of the final salary, the pension contribution must also be increased. Several opinion polls show that not even half believe they are working until their retirement age.