Sweden 2010

Sweden’s retirement income system was reformed in 1999. The new system, which applies to people born after 1953, is an earnings-related system with notional accounts. The overall system is in transition from a pay-asyou-go system to a funded approach.

There is also an income-tested top-up benefit which provides a minimum guaranteed pension.

The overall index value for the Swedish system could be increased by:

• raising the state pension age to reflect increasing life expectancy;
• encouraging employee contributions into employer sponsored plans;
• improving the requirements in respect of the annual information provided to plan members; and
• introducing arrangements to protect all the pension interests of both parties in a divorce

The Swedish index value rose slightly from 73.5 in 2009 to 74.5 in 2010.