Foreign-born pensioners in Sweden generally have lower disposable income than domestic-born pensioners, according to the Swedish Pensions Agency.

According to a report by the agency, this is because immigrants in Sweden generally have lower working-life incomes and thus poorer earnings for their pension compared with those born in the country. In addition, many foreign-born have a lower guarantee pension due to a shorter period of residence than the 40 years required for a full guarantee pension.

Almost 14 per cent of people aged 66 and older in Sweden were born abroad. The difference in disposable income between domestic and foreign-born pensioners is on average 13 per cent when capital taxes and capital income are excluded.

“The lower disposable income for foreign-born pensioners is mainly due to the fact that both the general pension and the occupational pension are based on income during working life. Many foreign-born who are retired today have come to Sweden in the middle of their lives and have therefore not earned a pension in Sweden for as many years as domestic-born. In addition, during these fewer years, they have generally had a lower salary than domestic-born people,” Swedish Pensions Agency analyst, Tommy Lowén, said.

Among foreign-born pensioners, 11 per cent do not have an income-based pension and therefore only have income from basic protection, i.e. housing supplement, guarantee pension or old-age support.

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