Raising the retirement age in the Swedish public pension system has reshaped social norms surrounding when people stop working, with more Swedes now postponing their pension withdrawals, according to the Swedish Pensions Agency.

In 2023, the retirement age for entitlement to basic protection, including the guarantee pension and housing supplement, was raised from 65 to 66 in response to rising life expectancy, causing those dependent on these benefits to delay their pension claims.

The agency calculated that the reform raised the average retirement age by 0.1 years in 2023.

However, the agency’s new report, 'Pension Standards in Change,' showed that the impact has spread more widely.

It found that almost one in five people who are not financially dependent on basic protection also chose to wait beyond 65 before accessing their pension.

The agency estimated that 17 per cent of this group delayed their withdrawal, with about half retiring at 66 and the rest postponing even longer.

Swedish Pensions Agency analyst, Philip Berlin Jarhamn, said the fact that nearly one in five savers without a guarantee pension or sickness compensation were delaying their pension suggested that age limits in the pension system act as “normative signals.”

Indeed, between 3,500 and 6,000 people born in 1958, the first cohort affected by the reform, are estimated to have postponed their pension purely because of a shift in perceptions of what is considered a ‘normal’ retirement age.

“This is a clear sign that the reform has changed behaviour even among those who were not directly affected by the rules,” Berlin Jarhamn claimed.

“Our analysis confirms international research showing that official pension ages function as psychological reference points,” he added.

The report also highlighted gender implications.

While men and women showed a similar tendency to delay retirement, women were more likely to be directly affected by higher age limits, as a greater share received the guarantee pension or sickness benefits.

The agency warned that future increases may therefore have a more substantial impact on women’s retirement patterns.

Additionally, the findings underscored the importance of timing and effective communication.

“Many people born in 1958 had probably already decided when they would take their pension when the decision to raise the retirement age was made,” the report noted.

“Earlier and clearer communication would probably have influenced more people’s pension decisions.”

Looking ahead, the Swedish Parliament has already legislated further changes, following the initiation of a review of basic protection in the pension system in May.

From 2026, the retirement age for basic protection will increase to 67 and become linked to average life expectancy.

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