Swedish pension savers are overestimating the amount that private pensions contribute to the overall size of their pensions, according to a survey by Demoskop for the Swedish Pensions Agency (SPA).

The SPA noted that private pension saving was at the top of the list of factors that Swedish pension savers believed affected the size of the pension the most, but that, in reality, private pension saving had a relatively small impact on the total pension for the vast majority.

Almost half (46 per cent) of the survey respondents thought that private pension saving had the most impact on their overall pensions.

Meanwhile, only a quarter (25 per cent) believed it was the timing of when they start drawing their pension.

The survey found no difference in the answers between self-employed workers and employees.

“Many people have a superstition about the importance of private pension savings,” said SPA pension specialist, Agneta Claesson.

“At the same time, few people know that one of the most important things you can do to increase your pension is to work a little or a few years longer.

“For some, it is important to have your own pension savings, for example for entrepreneurs or if you do not have an occupational pension from your employer.

“But for most of us, the pension is most affected by lifetime earnings, whether you have an occupational pension and at what age you choose to start drawing your pension.”

The SPA also found that the most common savings amount among those saving privately for retirement was up to SEK 500 a month, with 29 per cent of respondents saving that amount.

It noted that anyone who saved SEK 500 a month from the age of 23 until retirement at the age of 67 would receive a personal savings amount of 10 per cent of their entire pension.

Furthermore, one year of extra work after the age of 66 can give a saver extra income in retirement of between SEK 1,600 and SEK 2,200 per month.

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