Sweden’s income pension and other supplementary pensions will increase by 4 per cent in January 2025, the Swedish Pensions Agency has revealed.

This is higher than the increase in January 2024 when income and supplementary pensions increased by 1 per cent. Furthermore, the guarantee pension, which follows price developments, will increase by 2.6 per cent in 2025.

Swedish Pensions Agency head of analysis, Ole Settergren, commented: "The income pension follows the income development in society and the income pension earned during life, before retirement, is calculated annually with the income index.”

The income pension is boosted when first taken by an annuity divisor of 1.6 per cent. This is then deducted from future annual increases to the income pension. Income, on average, increased by 5.7 per cent in 2024, so the increase in the income pension will be 4 per cent after the reduction.

Sweden has approximately 2.3 million pensions, of which 1.1 million receive an income and/or supplementary pensions without basic protection, such as the guarantee pension or housing supplement.

Just over 900,000 pensioners receive the income pension and some guarantee pension. Around 300,000 have no or a low-income pension and have a guarantee pension and housing supplement.

The Swedish Pensions Agency said increases to the premium pension, Sweden’s mandatory defined contribution system, will be known in December.

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