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Sweden’s retirement income system was reformed in 1999. The new system is an earnings-related system with notional accounts. The overall system is in transition from a pay-as-you-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:

  • increasing the state pension age to reflect increasing life expectancy
  • ensuring that all employees can make contributions into employer sponsored plans
  • redesigning salary sacrifice arrangements so that it is attractive to all employees
  • reintroducing tax incentives for individual contributions
  • introducing arrangements to protect all the pension interests of both parties in a divorce.

 

RRF19921_MMGPI Report_0616_Chart_WEB_1000x950_24_SWEDEN

Progressive Results: 

Year

Overall

Adequacy

Sustainability

Integrity

2016  71.4 67.6 69.5 80.3
The Swedish index value decreased from 74.2 in 2015 to 71.4 in 2016 primarily due to a reduction in the level of household savings and the assumed level of funded mandatory contributions.
2015 74.2 71.1 72.6 81.5

The Swedish index value increased from 73.4 in 2014 to 74.2 in 2015 primarily due to an increase in the household saving rate.

2014  73.4  67.2  74.7  81.6

The Swedish index value increased from 72.6 in 2013 to 73.4 in 2014 primarily due to increased scores in the adequacy sub-index.

2013

72.6

65.2

74.5

81.5

The Swedish index value fell from 73.4 in 2012 to 72.6 in 2013 primarily due to a reduction in the net replacement rate and the revised tax question which recognised that investment income in a pension plan is taxed.
2012

73.4

68.0

73.3

82.5

The Swedish index value remained steady at 73.4* from 2011 to 2012 although there was a fall in the household savings rate and a fall in the value of assets due to improved data. This reduction was offset by the change in scoring for the level of investment in growth assets and our introduction of the Worldwide Governance Indicators.* Note that the October 2011 Index report showed an index value of 72.6 which was amended due to a subsequent correction in OECD data which affected Sweden only.
2011

72.6

65.6

75.4

79.9

The Swedish index value fell from 74.5 in 2010 to 72.6 in 2011. The main reason is the significant reduction in the net replacement rate as calculated by the OECD.
2010

74.5

72.8

72.9

79.5

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

73.5

68.5

75.2

79.1

 

 

Media 2014:

Suomi pärjäsi eläkevertailussa

 


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