Swedish workers wish for a pension worth 69% of their salaries

The average Swedish worker would like a pension worth 69 per cent of their salary and a retirement age of 65, according to a survey by the Swedish Pensions Agency.

On average, they would like to contribute 6 per cent of their salary to their pension savings. However, the Ideal Pension Survey of 3,000 people aged 30-65 by the Swedish Pensions Agency found that there was a wide range of answers from Swedish savers.

The agency said that differences in opinion on pensions and retirement do not depend on gender, income or age. However, it believes that high mandatory fees may have an impact on an individual’s choice to save or refrain from saving.

Commenting, Swedish Pensions Agency market analyst, Ann-Christine Meyerhöffer, said: "My ideal pension is an exciting tool that can help people understand how different pension choices are connected. It becomes more realistic when those who respond have to weigh up the different choices against each other, than when answering without the choices in the survey being made interdependent.”

The survey found that respondents are split over whether the most important factor is to retire at a certain age or the pension reaching a certain level of compensation. In a previous survey in 2018, a larger proportion stated that retirement income was most important.

The Ideal Pension Survey includes a web tool that can be used to better understand how the choices around retirement age, retirement income and own savings are interdependent.

The survey found that older people tend to preference the retirement age more so than younger people.

"Working an extra year after 65 can mean upwards of SEK 2,000 more in pension per month, calculated on an average salary. By logging in to pensionsmyndigheten.se, pension savers can test different retirement ages themselves to see how much more they can receive in retirement per month,” Swedish Pensions Agency pension expert, Monica Zettervall, said.

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