The Covid-19 pandemic prompted the first decline the number of Swedish people continuing to work whilst drawing on their pension, analysis by Alecta has found.

The proportion of people aged over 65 that still had some of their income coming from work had been steadily increasing since Alecta began measuring these figures in 2016.

Between 2016 and 2019, this percentage had risen from 20.7 per cent to 21.9 per cent.

However, 2020 saw the first drop off, with 21.1 per cent of over-65s working while drawing on their pension.

“This is most likely connected to the restrictions for 70-plus people during Covid -19,” commented Alecta pension economist, Staffan Ström.

“The Covid restrictions thus not only dampened the elderly 's opportunity to meet other people, it also dampened their participation in working life.

"Unfortunately, I think it will have lasting effects. We already know that the longer you are away from the labour market, the less chance you have of returning to work.”

In 2020, almost 45 per cent of 67-year-olds worked, according to Alecta, with just over half of them receiving 30 per cent or more of their income from work.

Among 70-year-olds, around one in seven still received 50 per cent or more of their income from work.

“Although the vast majority who work after 67 do so because they want to and not because they need the money, their continued work is of course something that improves their finances,” said Ström.

“That so many of the 67-year-olds are still working, and receive such a large part of their total income from work, shows that the population has already adapted to the fact that we are getting healthier and living longer.

“Now it is important that the politicians and employers keep up. More people want to work and want to be able to do it in a flexible way.

“A first measure is to amend the Income Tax Act so that it becomes possible to pause payments of occupational pensions.”

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