The Swedish Pension Reform. Why and What for?

The Swedish Pension Reform. Why and What for?

The Swedish government proposes to amend the law on the protection of the rights of the employee and raise the boundaries of working age, at which the employer has the right to dismiss an employee, from 67 to 69 years.

According to the proposal, the minimum age from which a person will receive a state pension will increase in 2020 from 61 to 62 years. The age up to which it will be allowed to save work (LAS age) will also increase from 67 to 68 years. According to one of the developers of the proposal, Mats Persson from the Liberal Party, the reason for the reform was the fact that many people who want to work cannot do this because of the beginning of the retirement age, reports The Local.

In 2023, the age of retirement will increase again to 63 years, and the LAG age – to 69 years. The so-called guaranteed pension, which is paid to those who during their working life had a minimum wage or did not receive any income that meets pension requirements, will also be issued not from 65, but from 66 years of age. In 2026, a further extension to 64 years and 67 years for basic and guaranteed pensions, respectively, is envisaged.

Years Take their Toll … or don’t they?

Proposals for raising the working age in Sweden and fixing it in the law are discussed not for the first year. According to one of the polls conducted at the end of last year by the Sifo Institute for the Study of Public Opinion, the majority of Swedes (76%) considered it a good idea to enshrine in the law the right to save the workplace up to 69 years. At the same time, 57% of respondents said that they hardly have the strength to work up to that age.

According to the Central Statistical Bureau of Sweden, the number of people of retirement age who continue to work has noticeably increased after the right to continue working was increased from 65 to 67 years in the early 2000s. According to statistics for 2017, on average, every third 67-year-old resident of Sweden wanted to save the workplace.

International studies conducted by the Institute for Health Performance and Assessment (IHME) and the University of Washington have recently demonstrated that Swedes have relatively high life expectancy – just under 82 years for both women and men. But the difference in health up to 70 years and after this age is enormous.

By the way, a new ranking of the best countries for pensioners has recently been released, in which Sweden ranks second.


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