The share of pensions paid out from occupational pensions and life insurance savings in Sweden is increasing, according to Insurance Sweden (Svensk Försäkring).

The association said that for the vast majority, the general pension accounts for the largest share of the total pension. However, in 2021, the share of occupational pensions accounted for 20 per cent and other life insurance savings for 19 per cent of the total pension paid.

Occupational pension and life insurance savings function as a supplement to the general pension paid by the Swedish Pensions Agency. During the period 2012–2021, payments from occupational pensions increased by 97 per cent and life insurance savings by 119 per cent. Pension payments from general pensions increased during the same period by 42 per cent.

Commenting, Insurance Sweden senior economist, Eva Erlandsson, said: “It is clear that the significance of occupational pensions within the total paid pension has increased over time.

"This trend will probably be strengthened in the future because we know that the level of provisions made for occupational pensions has increased in several agreement areas in recent years. In addition, more and more people have an income above the earnings ceiling for general pensions, where the provision for occupational pensions is higher.”

Payments of general pensions from the Swedish Pensions Agency amounted to SEK 365bn in 2021, while payments from occupational pensions and life insurance savings amounted to SEK 236bn.

The statistics only show the payment of occupational pensions that have taken place through savings in occupational pension insurance and private endowment and pension insurance, respectively. In addition, employers can secure occupational pension commitments through provisions in the balance sheet or to a pension foundation. This means that payments from occupational pensions are higher than what is stated here.

Share Story: