Forty per cent of Swedish people plan to continue working while drawing their pension, research by the Swedish Pensions Agency has found.

A survey by Demoskop, on behalf of the Swedish Pensions Agency, found this figure to be an increase on the 2021 result, when the proportion was 33 per cent. The respondents gave several reasons why they want to continue working while drawing a pension. For example, it is fun to work, you cannot afford to stop working completely, and because working makes you feel good.

The survey found that 34 per cent will stop working completely when they start drawing their pension. Swedish Pensions Agency pension expert, Monica Zettervall, said that although not everyone can work in later life, some employees can reach agreements with their employer to work part-time, whilst taking out all or part of their national pension.

Life expectancy in Sweden is increasing, which the agency said means that working lives need to be extended to maintain pension levels. The Swedish Parliament has decided to gradually raise the retirement age to counteract the fact that pension payments per month will be lower when the total pension capital is spread over more years.

From 2026, a 'target age' will be introduced to take account of increasing life expectancy in Sweden. However, the survey shows that only 8 per cent are fairly or very familiar with the concept of the target age and only 22 per cent are fairly or very familiar with the decision to raise the retirement age.

Just over half, 58 per cent, said that they have never heard of the concept of the target age and 25 per cent, say that they are not at all familiar with the decisions to raise the retirement age.

Furthermore, the so-called LAS (Employment Protection Act) age has been gradually raised and is now 69 years old. However, just 8 per cent stated this age when asked what age they think they are entitled to work until today.

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