Swedish citizens retiring at the age of 65, instead of 67, face up to SEK 3,000 to 4,000 a month less in retirement, according to research by Skandia.

Skandia’s report, The retirement age dilemma, looks at how the new retirement ages introduced in Sweden affect those in their 60s – a group that is close to retirement. Under the new retirement ‘target ages’ savers should plan for a retirement age of 67.

“This report shows how important it is to work to get a good pension and the power of working longer. Working to the target age has an undoubtedly positive effect on pensions, but the decisive factor will be how people's behaviour, health and willingness to work longer also change,” Skandia pension economist, Mattias Munter, said.

Surveys have shown that the majority of Swedish people want to retire at the age of 65 or earlier, including those in their 60s. However, Skandia’s report found that retiring at 65, rather than 67, leads to a reduction in the pension by just under SEK 4,000 per month for private salaried employees, and by just over SEK 3,000 per month for public employees.

Instead, working part-time for some years after 67 years, on the other hand, results in a sharp improvement in the pension envelope of between SEK 3,600 and 4,500.

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