The Swedish Pensions Agency will pay SEK 45.4bn into premium pension accounts this weekend as part of the annual deposit of earned premium pension rights.

Already this year, the agency has paid into other parts of the pension system – approximately SEK 294bn into the income pension, and SEK 246bn paid by employers in occupational pension premiums to their employees. It means that total pension contributions amount to SEK 585.4bn for this year.

Commenting, Swedish Pensions Agency head of analysis, Ole Settergren, said: “Last year, all employees waived an estimated SEK 585bn in salary in order to receive the money as a pension instead in the future. This corresponds to pension contributions of a total of 28 per cent that employees on average currently pay for their future pension.”

About one-seventh of the general pension is allocated to the premium pension system. From a total of 18.5 per cent of the pension savers' salary that goes to the general pension, 2.5 percentage points goes to the premium pension. The premium pension is a funded system, the deposit is booked and saved for each person. The money is invested in funds chosen by the saver or in the state-managed pre-selection AP7 Såfa.

“Those who have chosen AP7 Såfa do not need to do anything. Otherwise, it can be a good opportunity to review your savings based on risk level, return and sustainability,” Swedish Pensions Agency fund manager, Erik Fransson, said.

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