More than 120 KPA Pension customers paused their occupational pension payments following the introduction of a new rule allowing retirees to temporarily halt payments during the first five years of receiving their pension, the fund has revealed.

The rule, which came into force at the beginning of this year after being approved unanimously by Sweden’s parliament last year, also permits extending the pension withdrawal period.

KPA's research showed that nearly 400 people have shown interest in pausing their pension and 300 in extending the payment period.

At the beginning of April, there were 121 who had chosen to pause their pension and 42 people who wanted to extend the payment period.

KPA Pension chief actuary, Daniel Larsson, said there has been “no rush”, but more people than the provider thought have chosen to pause their retirement.

The data showed no clear pattern among those pausing pensions, participants vary in capital, monthly payments, and age.

"This indicates that many people have a different income. Most of them are probably job seekers. The average of the paused occupational pension is almost SEK 5,000 a month," Larsson said.

KPA Pension said it is positive about the new opportunities offered to pensioners, employees and employers.

"In the public sector, you will need labour. All ways that get competent staff to extend their working lives are welcome," Larsson noted.

The option to pause or extend occupational pension payments applies to defined contribution (DC) pensions within the AKAP-KR and KAP-KL agreement areas.

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