Sweden risks losing both growth and pension income by excluding older workers from the labour market, Skandia has warned, as new figures showed that continuing to work just a few years beyond the age of 65 can increase a pension by as much as SEK 5,000 per month.

Published to mark Ageism Awareness Day, the analysis highlighted how age discrimination remains a “direct counter-force” to longer working lives, despite growing evidence that productivity, health and quality of life can all stay strong well into older age.

Skandia pension economist, Mattias Munter, described ageism as "perhaps the most overlooked form of discrimination."

“This requires changes in attitudes on a broad front, but also an awareness among individuals of the need to stay curious and relevant to give yourself the best opportunities to work until the target retirement age,” he added.

Skandia’s analysis showed that remaining in the labour market for two additional years, perhaps through a gradual transition into part-time work or “jobboning” - combining work and retirement - could boost monthly pension income by between SEK 2,850 and SEK 5,050.

However, Munter cautioned that many Swedes who wished to work longer are prevented from doing so because of persistent age stereotypes.

“Research suggests that productivity is maintained well into old age, and even increases among academics as they age,” he argued.

“When ageism leads to those who want and can work longer not being allowed to do so, this becomes a societal problem - one that also lowers pensions further,” warned Munter.

Skandia noted that every additional year of work among older adults contributes to higher pensions, stronger welfare systems and greater economic growth, while also improving health outcomes.

Echoing this, the Plus Commission has estimated that the social cost of excluding seniors from the labour market amounts to SEK 70 billion each year - a cost Munter said Sweden “can hardly afford to continue paying.”

The warning follows several recent findings that point to similar shifts across Europe’s ageing societies.

In Denmark, for instance, Sampension recently noted that flexible retirement and phased work transitions are becoming increasingly attractive as older employees seek both financial security and engagement in later life.

Supporting this, the average retirement age for Danish employees reached a new milestone in the fourth quarter of 2024, hitting 67 years for the first time, according to new estimates from Insurance and Pension Denmark (I&P Denmark).

This follows the Danish Parliament (Folketing) voting to adopt a bill to increase the state pension age to 70 from 2040.

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