The Swedish pension system is based on several different parts. First of all, there is the general pension, to which everyone who has lived or worked in Sweden is entitled. After that, if you had it entered in the employment contract, you have set aside occupational pension – which is done by the employer.
The third part is based on private pension savings, which is up to each individual to decide whether they want it or not.
When it comes to the general pension, women have SEK 2,200 less in payment, before tax, compared to men.
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Photo: Malin Hoelstad/SvD/TT
The average public pension before tax in Sweden:
However, it is not only the general pension that differs. It also does so overall with all pension components included.
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The total average pension before tax differs between men and women.
Women’s total pension as a proportion of men’s amounts to 73 percent on average.
Source: The Pensions Authority
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You should consider that if you want to move your pension
Regardless of how big your pension is, or how much you’re expected to receive once you retire, you can influence it more than you probably think.
Pooling all your pension savings in one place can be beneficial for several reasons, especially if the bank you use does not charge an administration fee.
If you are thinking about moving your pension savings to one and the same place, there are some important details you should consider, according to Avanza’s private economist Felicia Schoen.
– Keep an eye on the fee. Especially for pension solutions, the fees tend to be exorbitant, both for the storage itself but also for the funds, she tells News24 and continues:
– Keep an eye on the risk. If you have more than ten years left until retirement, you should take a high risk to also maximize the return. It can feel safe with low or medium risk for something that feels as important as the pension, but if you look at how growth has looked historically, it only means a lower pension.
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Photo: Henrik Montgomery/TTSo the pension can increase over time
If you choose to carry out a transfer of the pension capital and collect it in the same bank, if the return is six percent per year, it can result in a substantial jump upwards in capital over time.
In a calculation example from Avanza, they show how the development can look over time.
If you move SEK 525,000 and get a return of six percent per year, the money develops into the following:
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“Try to be rational”
If you are thinking of carrying out a transfer of your pension money, however, you should familiarize yourself with how it works and talk to the bank. Schön explains that the most important thing is to make rational decisions.
– What fees are charged by certain actors to carry out the move, it can vary a lot and usually it costs nothing at all. Try to be rational, she concludes by telling Nyheter24.
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Felicia Schoen. Photo: Press photo Avanza