The Swedish government has proposed introducing a new benefit for low-income pensioners called the ‘guarantee supplement’ from August 2022.

The guarantee supplement is an agreement between the Social Democrats, the Left Party and the Green Party that would see those with the lowest pension receive the benefit.

According to the proposal, approximately one million pensioners would be covered by the new tax-free benefit.

The amount paid to those receiving the benefit could vary between SEK 1,000 and SEK 0, and will be calculated as a reduction of the maximum that will be made at a certain level on the income-based pension.

It was estimated that around 500,000 pensioners would receive the proposed maximum amount of SEK 1,000.

Although a decision on the introduction, design and value limits has not yet been made by the Swedish parliament, a vote on the proposal is expected in the spring and a decision is expected in the early summer.

The Swedish Pensions Agency noted that it was currently unable to answer questions on how much the benefit will be and who will receive it, but that if there is a decision made, no one will need to apply as the pension authority will know who is affected and make a calculation.

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