The income pension in Sweden will increase by 3 per cent in January 2023, the Swedish Pensions Agency (SPA) has informed the government.

This represents a higher increase compared to 2022, when the income and supplementary pension increased by 2.5 per cent.

Approximately 1.3 million out of 2.5 million pensioners in Sweden have an income and/or supplementary pension without elements of a guaranteed pension.

The guaranteed pension, which is linked to inflation, will increase by 8.7 per cent, the largest rise in its history.

There are around 720,000 pensioners who have both an income and guaranteed pension, and they will receive an increase of between 3 per cent and 8.7 per cent.

“The development of the income pension must be in step with the income development in society,” explained SPA head of analysis, Ole Settergren.

“When the income pension is calculated, an advance is given on the growth of 1.6 per cent.

“The advance is deducted from the income development at each annual recalculation of the income pension.

“Since incomes increased by 4.6 per cent on average in 2022, the increase in the income pension will be 3 per cent.”

Settergren added that the guaranteed pension will increase by 8.7 per cent at most, but as most guaranteed pensioners have both an income and guaranteed pension, the increase will be between the two.

There are approximately 280,000 pensioners with no or low income pension, who will therefore receive 8.7 per cent in increased pension.

For those with a premium pension, the recalculation also affects the total pension, which will depend on the development of the premium pension funds until December.

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