Swedish pensioners' premium pensions have increased by an average of 15.3 per cent year-on-year for 2022, according to the Swedish Pensions Agency (SPA).

This year’s average premium pension percentage increase was the highest seen since 2010, while the income pension increased by an average of 2.5 per cent.

In December each year, the SPA recalculates the premium pension amounts for those who have retired since the first payment from the premium pension system was made 20 years ago (2002).

The SPA revealed that the premium pension accounted for just over 11 per cent of the general income-based pension for those that started drawing their premium pension at the beginning of 2022.

Those pensioners that retired at the beginning of 2022 will receive and average of just over SEK 2,200 a month from their premium pension, with half receiving between SEK 1,500 and SEK 2,800.

When fully phased in for cohorts born in 1970 or later, the premium pension is estimated to account for one-fifth (20 per cent) of the general income-based pension.

The general income-based pension is generated by workers saving 18.5 per cent of pensionable income each year, split into 16 per cent saved into their income pension account and 2.5 per cent into their premium account.

This 2.5 per cent is placed in funds selected by the saver, or into a pre-selected fund if no choice is made.

“This year's average percentage increase in premium pension is the highest since 2010,” commented SPA analyst, Dan Frankkila.

“Since it is possible to choose different funds or traditional insurance that have given different value developments, the increase varies relatively much between different individuals.”

SPA pension expert, Monica Zettervall, added: “The premium pension is still the smaller part of the general pension.

“What mainly affects the pension is your total income throughout life, if you have an occupational pension through your employer and at what age you choose to take out your pension.”

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