More and more Swedes are extending their working lives, research from the Swedish Pensions Agency has revealed, suggesting that recent increases to the retirement age have had the intended effect.

The analysis showed that people born in the 1950s are more likely to draw pensions and continue working later in life than those born in the 1940s.

According to the report, more people aged 65-69 are working now, as employment in this group has increased by a full 20 percentage points, from 14 per cent to 34 per cent, since the new pension system was introduced in 2003.

In addition, the report found that just over a third (36 per cent) of Swedes had a salary as their main income at the age of 65 last year, a seven percentage point increase compared to 2022, when 29 per cent of 65-year-olds had a salary as their main income.

At the same time, the proportion of 65-year-olds with a public pension as their main income fell from 68 per cent in 2022 to 47 per cent in 2024.

Swedish Pensions Agency analyst, Stefan Granbom, suggested that the main factor driving this trend is the recent political decisions to raise retirement ages, and the development indicates a clear shift towards a longer working life.

Sweden's Riksdag previously agreed to raise the age limits in the pension system and related social security systems, after increasing life expectancy placed strain on both the pension system and other welfare systems. These came into force in 2023.

The changes seem to have had the intended effect, according to Granbom, who pointed out: "We clearly see that more and more 65-year-olds have a salary as their main income.

"But the retirement age reform has also led to fewer years of payments from social insurance in the form of pension, sickness compensation, sickness benefit and unemployment insurance for those aged 60 and older. So the reform has had the intended effect."

This has also highlighted gender gaps, as men have an average of three years less time on social insurance than women, which is partly due to the fact that women live longer on average.

There were also further trends identified, as the analysis suggested that many are turning to their occupational pension before turning to their income pension.

Indeed, the analysis found that the occupational pension increases as the main source of income three years before retirement and thereafter, rising by 4.6 percentage points for women and 3.8 percentage points for men.

Meanwhile, many of those with an income pension are also relying on other sources of income, as 71 per cent of those who received an income pension last year had wages as their main income before receiving the pension, while the second most common type of income was sickness compensation, at 12 per cent.

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