A quarter (25 per cent) of privately employed workers in the SAF-LO Agreement Area believe they won't be able to find work in retirement due to health reasons, research by Swedish pension provider AMF has revealed.

The research showed that 20 per cent of employees in municipalities and regions (AKAP-KR), 11 per cent of private sector salaried employees (ITP), and 5 per cent of government employees (PA16) said health reasons were the main reason they would not be able to find work in retirement.

In addition to this, 30 per cent of privately employed workers consider it likely that they will work and draw a pension at the same time, compared to 45 per cent of AKAP-KR employees and 40 per cent of ITP workers who said the same.

Furthermore, 35 per cent of PA16 employees said they see a future as a job owner.

AMF press and stakeholder communicator and report author, Johan Holmer, said that in the discussion about becoming a worker, it is often overlooked that a large part of the people do not have the opportunity to work during retirement.

Given this, he said it was not “surprising” that there are major differences between the agreement areas because the working lives differ, where many have worked with heavy tasks during their working lives and struggle to cope until retirement, while others have energy left.

He added that many workers therefore have limited opportunities to become workers.

The report found that 11 per cent of respondents said they need to work during retirement to manage their finances, while 29 per cent said they need to work to supplement their income.

"The fact that those who become job-seekers do so because they find it enjoyable to work reflects a certain part of what it looks like for those who choose to work and take out a pension at the same time,” Holmer continued.

“But the perspective that a large portion also do it to get a decent existence is often forgotten. It is a group that needs to get an extra penny to cope with everyday life as a pensioner.”

A recent change in the law makes it possible to pause the withdrawal of occupational pensions, which will make more people choose a future as a worker.

However, AMF's survey showed that of those already retired, only 4 per cent believe they will take advantage of the opportunity to pause the withdrawal of occupational pension.

Yet, one in five employed people consider it likely that they will take advantage of the opportunity and the same amount of respondents believe they will have to work after retirement.

"It is good that savers have the opportunity to decide for themselves about the withdrawal of pension and adapt to their situation. What you should take into account is that it is primarily relevant for those with sufficiently high incomes to hit the ceiling for state income tax," Holmer said.

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