The board of Swedish pension company Alecta has decided to increase its defined benefit (DB) pensions by 10.84 per cent for 2023, corresponding to the rise in inflation witnessed over the past year.

In total, this means that over SEK 50bn will be distributed among 1.6 million customers.

The increase affects Alecta’s customers who are covered by the DB occupational pension ITP 2.

Its decision to increase these pensions applies to pensions in payment as well as accumulated pensions that have not yet begun to be paid out.

From 1 January 2023, the increase in pensions in payment will affect 641,000 ITP pensioners, while the change will benefit 960,000 customers who have not yet started to withdraw their pension.

Alecta has increased pension payments in line with inflation since the ITP plan was introduced in 1960.

Alecta pension economist, Staffan Ström, stated that the occupational pension was of “great importance” to pensioners’ finances.

“This increase of almost 11 per cent means on average more than SEK 500 per month for a pensioner who worked as a civil servant in the private sector during his working life,” he continued.

“It's a lot of money these days, and the increase will also take place at the turn of the year.”

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