Swedish pension savers are to benefit from SEK 11.8bn in pension deposits from fund discount and inheritance profit, the Swedish Pensions Agency has revealed.

Fund management companies must discount their fund fees to participate in the premium pension fund square. Savers and pensioners receive this discount once a year, and the money is used to purchase more fund units in the savers' premium pension accounts. This year's deposit is the largest to date and will be paid from 6 May.

"Premium pension savers and pensioners will receive back SEK 11.8bn in rebates and inheritance gains. The discount on the funds' fees is on average 76 per cent lower on the premium pension fund square and leads to savers and pensioners receiving a larger share of the value development," Swedish Pensions Agency head of the fund square department, Erik Fransson, said.

The capital-weighted fund fee averaged 0.21 per cent of assets under management in 2021. Without the fund market's discount, the average capital-weighted fee would instead have been 0.87 per cent.

In addition to the deposit of discounted contributions, pension savers and pensioners will also receive SEK 6.3m in inheritance profits. It is money from people who died last year and is now distributed to other savers and pensioners. The large increase in inheritance gain compared to the previous year is mainly due to the fact that more people have premium pensions and with increasingly larger amounts.

In order to finance the administration of the premium pension system, the Swedish Pensions Agency charges pension savers a fee. The fee is decided by the government and amounts to SEK 512m in 2022, compared with SEK 608m in 2021. The administration fee per saver is on average 0.03 per cent or about SEK 62 per person in 2022.

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