The Swedish Pensions Agency has reported a strong return for funds in the country’s premium pension system in 2021.

It said the rise in the stock markets seen globally has had a positive effect on the value of premium pension funds.

The average value development for pension savers in the premium pension amounted to 29.6 per cent in 2021. Pension savers who remained in the state pre-selection alternative AP7 Såfa had an average value development of 31.2 per cent during the same period. This is 3.3 percentage points higher than for those pension savers who had their own fund choice, where the average value development was 27.9 per cent in 2021.

Commenting, Swedish Pensions Agency analyst, Dan Frankkila, said: “Approximately six out of 10 savers remain in the premium pension pre-selection AP7 Såfa and received a better return on average in 2021 compared with those who made their own fund choice. But the range of returns is wider among those who have their own fund choice with both higher and lower returns depending on the fund and investment focus.”

If you count all pension savers' entire savings period, their premium pension has increased by 10.8 percent on average per year. For those who remain in the pre-selection, the corresponding increase is 12.5 percent and for those who have their own fund choice, the corresponding increase is 9.2 percent.

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