A significant gap has emerged between awareness and behaviour among Sweden’s self-employed, with most recognising the need to save for retirement but far fewer taking the necessary steps to do so, according to data from the Swedish Pensions Agency (SPA).

Its latest report, Saving for retirement as a self-employed person in 2026, found that while 89 per cent recognised the need for pension savings beyond the state system, only 69 per cent said they actually have such savings in place.

SPA analyst, Ann-Christin Meyerhöffer, commented: “There is a clear disconnect between knowledge and action. Many people know what is required, but still do not earn enough or save too little. This means they risk receiving a low pension.”

Furthermore, the report found that as many business owners pay themselves low wages or have low profits, they accrue relatively few pension entitlements under the state pension scheme.

Therefore, the findings underline the importance of drawing an adequate salary to support state pension accrual, with full benefits only reached at SEK 56,050 per month (SEK 672,600 annually in 2026).

The report also identified that the self-employed commonly save in ways that are not the most advantageous.

Meyerhöffer explained that self-employed individuals running sole proprietorships with lower incomes sometimes save in a tax-deductible manner.

“This allows them to claim deductions for private pension savings in their tax returns. However, this reduces their state pension. Therefore, it is better for sole traders with lower incomes to save using taxed income in an investment savings account or a capital insurance policy,” she stated.

In addition, SPA’s research showed that fewer than half, 45 per cent, are aware that taxes decrease and contributions are reduced if they continue working later in life. At the same time, many state that they plan to start drawing their pension at a later age.

In order to build adequate retirement savings, the SPA recommended that self-employed people set aside around 4.5-6 per cent of their salary as an 'occupational pension', up to an annual income of SEK 625,500, and significantly higher rates, around 30 per cent, applied to earnings above this threshold to achieve comparable outcomes to the employed.

At the same time, the report highlighted the role of appropriate product selection.

For those below the state pension accrual ceiling, SPA said tax-paid savings vehicles such as ISKs or capital insurance are often more suitable, while higher earners may benefit more from tax-advantaged pension products such as IPS or pension insurance.

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