The cross-parliamentary Swedish Pension Group has agreed that occupational pension payments in Sweden should have the option to be paused, in an effort to encourage more elderly people to work.

In a meeting last Thursday 26 October, representatives from all eight parties in the Riksdag (Swedish parliament) participated. During the meeting, the Pension Group supported the direction of more flexible rules for the payment of occupational pensions.

Currently state pension payments can be paused but occupational pension benefits cannot be. The group has agreed that the latter should also be able to be paused and payment periods should be able to be extended.

“It is historic that all parties are included in the pension group and it is very positive that we already at the first meeting supported the direction that it should be possible to pause payments of the occupational pension,” Minister for the Elderly and Social Insurance, Anna Tenje, said.

She explained that the proposal will make it easier and more advantageous for a pensioner to re-enter the workforce without being hit by heavy tax bills due to their occupational pension.

“Ultimately, it is about three things; that those who want and can work should be able to do so, to make use of the skills of the elderly in the labour market and that those who work in this way strengthen their pension,” Tenje said.

The decision was also welcomed by Insurance Sweden chief economist, Magnus Vesterlund, who said: “It is positive that the new pension group has picked this low-hanging fruit to improve the pension system and encourage the elderly to work longer by giving the go-ahead to changed legislation.”

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