Almost a third (31 per cent) of Swedish pension savers plan to work longer to receive a higher pension and improve their finances in retirement, according to research from the Swedish Pensions Agency (SPA).

The SPA estimated that one year of extra work at age 65 would give give between SEK 1,400 and SEK 2,200 more per month in retirement, whilst those who work until age 69 could increase their pension by as much as 32 per cent.

SPA pension specialist, Agneta Claesson, commented: “Taking out the pension later is one of the most important choices we as individuals can make to increase our own pension.

"Many people do not know how important it is for the size of the pension to wait to take out the pension for a few years.

“Today we live almost three years longer than when the current pension system was introduced in the 90s, but the average retirement age has been largely constant.

"This means that the total pension amount must be distributed over more years than before, which results in a lower pension per month.”

Indeed, the SPA previously warned that Swedish savers may be overestimating the value of their private pension at retirement, arguing that the time at which a pension is chosen can have more of an impact, as private savings make up just 5 per cent of the entire pension for the average pensioner.

However, the SPA also flagged the role of the orange envelope, which will be sent out to savers in mid-February, in educating members and providing more information on pension provision.

“The information in the orange envelope shows what you have earned so far for your general pension,” Claesson added. "By logging in to the SPA's website, you can get a picture of your entire future pension, including occupational pension, and tips on how to influence your pension."

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