Higher than expected returns for the Swedish AP funds has resulted in an income pension surplus of SEK 1.2trn, as at 31 December 2021, according to the Swedish Pensions Agency (SPA).

In its forecast submitted to the government, the SPA noted that the income pension system’s surplus was larger than expected and SEK 395bn higher than the previous year.

The income pension is part of the Swedish national public pension, with 16 per cent of workers’ incomes going into the income pension.

Assets in AP funds 1-4 and 6 increased by SEK 308bn during 2021 to close December at SEK 2trn.

In total these assets were estimated to be 12 per cent larger than the pension liability.

Fee availability at the end of December 2021 was SEK 9.19trn, while pension debt was SEK 9.99trn.

"The surplus is significantly larger than what we have forecast in previous projections,” commented SPA head of analysis, Ole Settergren.

“This is due to higher returns at the AP funds than expected. But the higher surplus is also due to the fact that pension contributions in the future are expected to be longer in the system before they are paid out as a pension.”

Further information on the pension system's financial position will be published in the SPA’s annual report at the end of February.

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