Nearly three in 10 (29 per cent) Swedish pension savers plan to work beyond their expected retirement age in order to receive a higher pension in retirement, research by Demoskop for the Swedish Pensions Agency (SPA) has found.

Demoskop polled nearly 1,000 pension savers around the country, asking them what they do or plan to do to improve their finances as pensioners.

More than a quarter (26 per cent) said that they planned to work at the same time as they draw their pension to improve their income in retirement.

“Taking out the pension later is one of the most important choices we can make to increase our own pension,” commented SPA pension specialist, Agneta Claesson.

“Many people do not know how important it is for the size of the pension to wait to take it out for a few years.”

Claesson noted that although Swedes tend to live around three years longer than when the pension system was introduced in the 1990s, the average retirement age has remained broadly the same.

This means that people’s total pensions are distributed over more year than when the system was introduced, leaving a lower pension per month.

According to calculations by the SPA, one year of extra work after the age of 66 can give pensioners between SEK 1,600 and SEK 2,200 extra per month before tax.

Furthermore, those who choose to withdraw their pension ages 70 instead of 66 could receive an increase in their pension of 28 per cent.

However, the SPA noted that some people who receive a guaranteed pension or other basic protection within the general pension may not receive a higher pension income from working after the age of 66.

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