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The pension guide

Pensions explained – from pyramid to pocket

Reviewed and current (updated 1 Jan & 30 Jun)Last verified 2026-06-30 · Next check 2027-01-01

Understand how the public pension, occupational pension and your own saving work together — and what actually raises your future payout.

  • Public pension & target age
  • The power of occupational pension
  • AP7 Såfa & low fees
  • Smart withdrawal strategies

The Swedish pension system

Three layers that together become your pension. Select a layer for details.

Public pension

18.5 % of pensionable income: 16 % income pension and 2.5 % premium pension (PPM), with the guarantee pension as a floor.

  • Income pension 16 %
  • Premium pension 2.5 % — you pick funds
  • Guarantee pension as a floor

Target age & tax rules

The target retirement age governs the earliest withdrawal and when the tax rules change.

  1. Age 64

    Earliest withdrawal

    Income and premium pension can start, but every early year lowers the lifelong payout.

  2. Age 67

    Target age

    The system's normal age. Guarantee pension and housing supplement start here.

  3. Age 67+

    Tax bonus

    A higher basic deduction and a stronger job tax credit make continued work cheaper in tax.

Working longer pays twice

You keep earning pension rights while your salary is taxed lower from the year after you reach the target age — and the capital is spread over fewer years.

Pension simulator

A rough estimate of your replacement rate — how much of today's salary your pension may cover.

40
67

Estimated result

Pension per month (before tax)

24,384 kr

27 years until withdrawal

Of which public pension
19,960 kr
Of which occupational
4,425 kr
Replacement rate
64 %

The cost of fees

One percentage point higher annual fee costs roughly 149,637 SEK of your occupational capital before withdrawal.

Smart advice & strategy

Five decisions with the biggest impact on the final amount.

Review your PPM (AP7 Såfa)

AP7 has a very low fee and glides risk down towards retirement. Only switch if you know why.

Survivor cover

Keep it while your family needs it — remove it when single to gain inheritance gains and a higher own pension.

Check the occupational pension

No collective agreement? Negotiate 4.5 % of salary (30 % above the ceiling) into pension.

Compensate part-time & parental leave

Transfer premium pension rights to the lower-earning partner, or save the difference in an ISK.

Salary exchange

Can pay off above the state tax threshold — but only if your salary stays above the ceiling afterwards.

Current rule values

The target retirement age governs the earliest withdrawal and when the tax rules change.

Income base amount
83,000 kr
Price base amount
60,000 kr
Target retirement age
67
Pensionable salary ceiling (per month)
51,875 kr

Trusted sources & references

Government authorities, forecasting services and independent consumer guidance.