Swedish public pension (allmän pension)
This information is for EU/EEA citizens only
In Sweden, a public pension is to a high degree funded by employer-paid social security contributions. Each month, your employer must pay 31.42 % (2024) of your gross pay in employers’ contribution. 10.21 % of these contributions go to the payment of your pension. Of the total 18.5 % is paid to your future pension - the rest is made by your deposit through your tax return - however a deductible deposit.
The Swedish public pension structure
The Swedish public pension is made up of different elements some of which are linked to your income.
Income pension
An income pension represents a substantial part of the Swedish state pension. 16 of the 18.5 % paid goes to your income pension.
Premium pension
A premium pension is like an income pension, financed by your employer and you pay social security contributions in addition to your salary. 2.5 of the 18.5 % goes to the premium pension. Unlike an income pension, you have the opportunity to decide how the money should be placed.
Guarantee pension
A guarantee pension is a state-funded pension to ensure that people who have had very little or no income have an income when the person retires. To be entitled to a full guarantee pension, you must have lived in Sweden for 40 years. The guarantee pension is therefore reduced if you have an income pension, foreign pension, etc.
In December 2017, the Court of Justice of the European Union made a decision that will impact the structure of the grant pension. This means that the guarantee pension will be calculated considering all periods of insurance within the EU/EEA and with the support of national legislation. This also means that coordination with all public pensions from other EU countries will take place for the calculation.
The guarantee pension is only paid to entiled pensioners living in Sweden. You may be entitiled to a guarantee pension if you have reached the age of 66 and have a low or no income-based pension. From 2026 the age limit will gradually increase in line with increasing life expectancy.
