The proportion of poor Swedish pensioners is decreasing, with just 8 per cent of people aged 65–79 living in relative poverty, the lowest proportion of any age group, according to an annual income study by pension provider Alecta.

In comparison, the corresponding figures are 17 per cent among 20-29-year-olds, 13 per cent among those aged 30-49, and 12 per cent among people over 80.

Although the percentage is low, Alecta noted that it still means around 200,000 pensioners are struggling financially.

To complement its annual income study, Alecta commissioned Novus to survey nearly 1,200 people aged 67–75 about their financial well-being and quality of life in retirement.

The survey found that 6 per cent of respondents said they could only afford the essentials, while 1 per cent said they did not have sufficient funds even for those.

These findings broadly align with the income study's conclusion that, while most pensioners are financially secure, a minority continue to face economic hardship.

Commenting on the research, Alecta pension economist, Staffan Ström, said: “We have been conducting our income study for almost 10 years and have seen how the incomes of new pensioners have increased whilst the proportion living in poverty has fallen.

“New for this year is that we have commissioned a survey in which today’s pensioners themselves get to say what they think about their lives – and many are actually satisfied.”

Alecta’s study also showed that, following a period when high inflation dampened the long-term trend of rising incomes for new pensioner cohorts, incomes are increasing again.

The income of new pensioners is increasing, as at the age of 67, people born in 1957 typically had SEK 8,000 more per month to spend compared to what 67-year-olds had 10 years ago.

The study showed that an average earner born in 1957 retained 99 per cent of their income at age 60 by the time they reached 67, after tax. The provider explained that this is partly due to a tax compensation scheme specifically for the 1957 cohort. For most people, this involved a one-off payment of SEK 25,000–35,000.

“Previously, we have seen that average earners receive up to 90 per cent of the income they had at the age of 60 after retirement, in total after tax,” Ström stated.

The number of older people in work is also increasing, with just over 465,000 working pensioners in Sweden, up by 19,000 from the previous year. Among those aged between 66 and 70, just over four in 10 have income from employment.

More men than women are working pensioners, but the increase is slightly greater among women.

The Novus survey found that 68 per cent of respondents said they can largely live the life they want or even treat themselves to everything, while 87 per cent said they feel fairly or very secure about their financial future despite an uncertain world.

The survey also found that 87 per cent of respondents were fairly or very satisfied with their current financial situation. And among working pensioners – those aged 66 or over who have an income from work – the figure rose to 93 per cent.

When asked what is most important in life, 79 per cent of respondents said good health and 75 per cent said close relationships, while a healthy financial situation ranked third at 57 per cent.

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