Sweden to pay new income pension supplement to those living abroad

Sweden’s new income pension supplement, which will be paid to those on a low old-age pension, will also be paid to eligible persons living in European Union / European Economic Area countries and Switzerland.

The benefit will commence in September 2021, with those who have an income-based general pension between SEK 9,000 and SEK 17,000 per month set to receive a payment of between SEK 1 and SEK 600 before tax per month.

In Finland, at the beginning of 2021, the Swedish Pensions Agency sent an inquiry to all recipients of a Swedish income pension in Finland – around 52,000 people. The inquiry was used to establish who is entitled to the new supplement. In the future, the right to the supplement will be established automatically in connection with claiming an old-age pension from Sweden.

Qualifying for the income pension supplement for those living overseas requires that the pensioner receives a combined income pension from Sweden and other EU/EEA countries and Switzerland to the gross amount of SEK 9,000 – 17,000 per month. In addition, the right to receive the pension and the pension amount also depends on for how many years the person has worked in Sweden.

However, the Finnish Centre for Pensions has highlighted that in Sweden, pensions consist of different components to Finland. For example, the income pension supplement does not affect the other pension components; instead, it is paid on top of the Swedish statutory income pension.

In Finland, Kela estimates that the new income pension supplement may affect some Kela benefits. These benefits include the national pension, the guarantee pension, housing allowance and basic income support. Those that are granted the new Swedish income pension supplement are advised to contact Kela.

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