One third (33 per cent) of Swedish savers believe that their private pension will have the greatest impact on the value of their pension at retirement, according to research from the Swedish Pensions Agency (SPA).

The research, undertaken by Demoskop, also revealed that only 11 per cent of savers think that the time at which they choose to start taking their pension has the greatest impact.

However, the SPA warned that many savers may be overestimating the support offered by private savings, pointing out that private savings make up just 5 per cent of the entire pension for the average pensioner.

In contrast, analysis from the SPA suggested that one year of extra work after the age of 65 could push savers' pensions up by SEK 1,400-2,200 before tax, whilst delaying retirement from the age of 65 to 69 could increase pension savings by as much as 32 per cent.

SPA pension specialist, Agneta Claesson, commented: “Many people have a superstition about the importance of private pension savings. At the same time, few people know that one of the most important things you can do to increase your pension is to work for a few years or more.

“For some, it is extra important to have their own savings for retirement, for example for entrepreneurs.

"But for most of us, the pension is most affected by the total life income, if you have an occupational pension and at what age you choose to start drawing your pension."

Claesson also noted, however, that the orange envelope will be sent to savers in mid-February, showing savers what they have earned so far for their general pension.

"To get a picture of your entire future pension at different retirement ages, log in to the Swedish Pensions Agency's website," she added. "There is also information on what you can do to influence the pension.”

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