Sweden’s income-based pension to increase by 0.8% in 2021

Sweden’s income-based pension will increase by 0.8 per cent in 2021, the Swedish Pensions Agency has revealed.

This is a change from a forecast submitted in May this year that predicted the income-based pension would decrease by 1.5 per cent next year. Instead, the agency now expects the pension to decrease in 2022.

The increase means that a pension of SEK 12,000 a month will increase by SEK 100 a month from 2021.

Commenting, Swedish Pensions Agency head of analysis, Ole Settergren, said: “Our forecast now in July is that the income pension will increase by 0.8 per cent next year. The fluctuation in the forecast is due to the fact that average income in 2020 is expected to rise significantly more than projected in May.

“In the forecast, the effect of the pandemic on average income has partly shifted from the current year to 2021, which means that the income pensions in this forecast will not be reduced until 2022. At the end of October we will know with certainty how the income pension for 2021 will be recalculated.”

For the premium pension, which is another part of the country’s first pillar pension system, payments are expected to decrease by 2.5 per cent in 2021. The average premium pension payment is approximately SEK 770 per month.

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