A fifth of Swedish people who continued to work once they had started to retire did so because they felt their pension was too low and they needed the money, according to a study by the Swedish Pensions Agency (SPA).

Despite this, most of the people surveyed who continued to work did so because they felt it was social and they wanted something to do in their retirement.

The study of 62 to 70 year olds found that six in 10 of those who continued to work did so in the same workplace as they did pre-retirement, while 40 per cent changed jobs while in retirement.

“The high proportion of jobseekers who change workplaces is surprising and goes a little against my previous perception of older people's mobility in the labour market,” commented SPA market analyst, Ann-Christine Meyerhöffer.

“It is positive at first glance, but the mobility may also be due to the fact that relatively many are not allowed to continue working at their previous workplaces.”

Nine in ten of the respondents worked part time, with 70 per cent working 20 hours a week or less and two in 10 working part time even before they started receiving a general pension.

Alongside the general pension, seven in 10 of those working in retirement also had an occupational pension.

Two-thirds of those working in retirement said that they researched how their taxes may be affected by combining a pension with paid work.

“It is good to investigate how the tax changes,” said SPA pension expert, Monica Zettervall. 

“A job earner receives two incomes and there is a risk that you will reach an income level that requires you to pay state tax. 

“At the same time, it is good to know that you pay a lower tax on both salary and pension from the year you turn 66.”

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