Sweden
Worked in Sweden? Any pension you built up here is yours to keep and can usually be paid to you abroad — but you have to claim it; it won't start automatically. The full state pension age is 67, with early access from 64. On totalization, Sweden has bilateral totalization agreements, so the years you worked here may combine with other countries you've worked in. Below is Sweden's system at a glance and what expats should check.
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Overview
Sweden operates a multi-pillar pension system widely regarded as one of the most transparent and financially sustainable in the world.
The public pension (allmän pension) comprises three main components: the income pension (inkomstpension), a notional defined contribution (NDC) scheme crediting 16% of pensionable income to individual notional accounts indexed to wage growth; the premium pension (premiepension), a funded defined contribution scheme directing 2.5% of pensionable income into individually chosen investment funds (or the default AP7 Såfa); and the guarantee pension (garantipension), a residence-based minimum pension for those with low or no income pension, requiring 40 years of Swedish residence for the full amount and payable only to residents in Sweden. In total, 18.5% of pensionable income (up to 7.5 income base amounts) is set aside annually for the public pension, with 16% going to the income pension and 2.5% to the premium pension. Employers pay a pension contribution of 10.21% of gross payroll, while employees pay a general pension contribution of 7% of gross salary (up to a ceiling), which is fully offset by a tax credit.
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Sweden's second pillar consists of quasi-mandatory occupational pensions (tjänstepension) established through collective bargaining agreements, covering approximately 90% of employees. The main schemes are ITP (white-collar private sector), SAF-LO/Avtalspension (blue-collar private sector), KAP-KL/AKAP-KL (municipal and regional), and PA 16 (central government). ITP1 (for those born 1979 or later) is a DC scheme with contributions of 4.5% of salary up to the income ceiling and 30% above it. ITP2 (for those born 1978 or earlier) is a DB scheme. The third pillar consists of voluntary private savings; tax deductions for private pension contributions were largely abolished for employees in 2016, though self-employed persons retain some deductibility.
From 2026, a target retirement age (riktålder) of 67 has been introduced, replacing the previous fixed age thresholds. The earliest withdrawal age for income and premium pension is now 64 (three years before the target age of 67), and the guarantee pension minimum age is 67. The target age is linked to life expectancy and will be reviewed and adjusted periodically. Employees have the right to remain in employment until age 69. Sweden has no fixed statutory retirement age, and the system is actuarially neutral — later retirement results in a higher monthly pension. The income pension is indexed to average wage growth minus a 1.6% norm, with an automatic balance mechanism that can reduce benefits if the system's financial position deteriorates.
~55% (mandatory schemes, average earner, OECD 2023); combined public + occupational ~73% for typical career worker
Pillar 1: Income pension (NDC, 16%) + Premium pension (funded DC, 2.5%) + Guarantee pension (means- and residence-tested); Pillar 2: Occupational pensions (quasi-mandatory via collective agreements, ~90% coverage); Pillar 3: Individual voluntary pension savings
NDC (income pension) + funded DC (premium pension) + guarantee pension (residence-based) + quasi-mandatory occupational DC/DB
Employee
7
Employer
10.21
Self-Employed
18.5
Notes
Employee pays 7% general pension contribution (egenavgift) on gross salary up to ~SEK 550,000/year; this is fully offset by a tax credit so the effective net cost is nil. Employer pays 10.21% of total gross payroll with no ceiling (pension portion of the 31.42% total social security contribution). Self-employed pay 10.21% on net business income as employer equivalent, plus the 7% employee contribution. Total public pension contribution is 18.5% of pensionable income (16% income pension + 2.5% premium pension). Occupational pension contributions are additional and paid entirely by the employer.
Common questions
What is the retirement age in Sweden?
The full state pension age in Sweden is 67. Early retirement may be possible from 64. Deferring can raise your pension up to age 69.
Can I claim a Sweden pension if I live abroad?
Yes. A pension you've earned in Sweden stays yours wherever you retire, and can usually be paid into an overseas account once you reach pension age. It won't start automatically, though — you need to claim it, typically a few months in advance, through Sweden's pension authority.
Do totalization agreements affect my Sweden pension?
Sweden has bilateral social-security (totalization) agreements. These can let you combine the years you worked in Sweden with years in partner countries to meet a minimum qualifying period, so short stints aren't wasted. Which partners and rules apply depends on your own work history.
How is the pension system structured in Sweden?
NDC (income pension) + funded DC (premium pension) + guarantee pension (residence-based) + quasi-mandatory occupational DC/DB Pillar 1: Income pension (NDC, 16%) + Premium pension (funded DC, 2.5%) + Guarantee pension (means- and residence-tested); Pillar 2: Occupational pensions (quasi-mandatory via collective agreements, ~90% coverage); Pillar 3: Individual voluntary pension savings It includes 7 schemes in our directory.