The Pension Group’s agreement on long-term raised and secure pensions

From: Ministry of Health and Social Affairs

Sweden has a fundamentally sound pension system, whose unique design attracted much international attention when it was adopted in the 1990s. Several countries, inspired by the Swedish pension system, have now reformed their own. The fact that the pension system is outside the government budget and pays out exactly as much in pensions as money is available for makes the pension system financially sustainable, which means that there is no risk of rolling over debt to future generations. This, combined with political stability — a large majority of Riksdag members backed the system — paves the way for secure pensions.

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In the almost 20 years since the pension system came into being, the global environment has changed. This has a bearing on pensions. In the past few years, the parties now backing the pension agreement have therefore carried out a major review of the various components of the system. This work has led the Pension Group to conclude that the basic principles and strengths of the pension system must be maintained, but that the system partially needs modernising to become even better at delivering secure pensions. The parties supporting the pension system have therefore agreed on continued updating of the pension system to safeguard raised, sustainable and secure pensions in the long term.

Accordingly, the Pension Group thus accepts the agreement made in March 2014 and, within the framework of its assignment, continues to maintain the pension system and preserve the pension agreement. In the Group, the starting point for this new agreement is to make several improvements in the system to make more secure and higher future pensions attainable.