Updated
For many people in Sweden the occupational pension is what decides the size of the total, particularly for anyone earning above the public pension ceiling, where it is the only part that keeps growing. It is paid by the employer under a collective or individual agreement, with a contribution rate that is often higher above the ceiling than below it. Two choices affect the outcome more than the investment does: whether the pension is a traditional guaranteed insurance or a fund insurance without a guarantee, and whether survivor cover is included, which lowers your own pension. Charges differ sharply between the providers on offer and over thirty years weigh more than most investment decisions. This calculator computes the contribution and the final value; the individual terms have to be checked in your own agreement.
Calculator Swedish Private Pension
Project your private pension savings in Sweden: Tjanstepension (occupational pension) and ISK (Investment Savings Account). Compare collective agreements and individual savings.
Your profile & savings
Summary
In your pocket at retirement
6 181 919 kr
net after tax
Possible monthly income
26 765 kr
per month as payout
You save
5 000 kr
per month (Tjanstepension + ISK)
In practice: By saving 5 000 kr/month for 31 years, you will accumulate a capital of 7 299 721 kr. After tax, you keep 6 181 919 kr net. Your investments earned you 3 971 919 kr more than the total amount you contributed.
Your employer contributes roughly 6 075 kr/year via Tjanstepension (employer contribution ITP1). As a payout, that translates to 26 765 kr/month for life, on top of your Inkomstpension and Premiepension.
Total capital
7 299 721 kr
Tjanstepension + ISK
Monthly payout
26 765 kr
If converted to lifetime payout
Tax benefits
188 325 kr
Cumulative employer contributions
Net after tax
6 181 919 kr
Available net capital
Tjänstepension (ITP1)
Final capital
4 471 206 kr
Total contributions
1 571 750 kr
Returns earned
2 899 456 kr
Tax benefit
188 325 kr
Withdrawal tax
-1 117 802 kr
Net after tax
3 353 404 kr
ISK (Investeringssparkonto)
Final capital
2 828 515 kr
Total contributions
1 266 000 kr
Returns earned
1 562 515 kr
Tax benefit
0 kr
Withdrawal tax
-0 kr
Net after tax
2 828 515 kr
Capital growth over time
- Tjanstepension
- ISK
- Total
Cumulative payout vs remaining capital
- Cumulative payout
- Remaining capital
Frequently Asked Questions
How much occupational pension does my employer pay?
What is the difference between ITP1 and ITP2?
Should I save in ISK or pension insurance?
How does salary exchange (löneväxling) for pension work?
What happens to my occupational pension if I change jobs?
Simulateurs associés
Allmän Pension
Enter your income to estimate Inkomstpension (16%) and Premiepension (2.5%). Guarantee pension and divisor applied per Swedish DC system. Free online result.
🇸🇪 Sverige
How much Swedish pension will you get? Calculate Inkomstpension, Premiepension and Tjänstepension. DC system estimated with free instant personalised result.
Understanding Swedish occupational pensions
Tjanstepension (occupational pension)
Tjanstepension is the Swedish occupational pension, negotiated through collective agreements (kollektivavtal). It covers approximately 90% of all employees and is a vital complement to the public pension.
- ITP1 (private sector, born after 1979): 4.5% on salary up to 7.5 PBB (~625 500 kr SEK), then 30% above. Defined contribution (DC).
- ITP2 (private sector, born before 1979): Defined benefit (DB). Pension = 10% of final salary below 7.5 PBB + 65% above.
- SAF-LO (blue-collar workers): 4.5% of salary. Similar structure to ITP1 but covers blue-collar workers.
- KAP-KL (public sector): 4.5% of salary. Agreement for municipal and regional employees.
- Employer-funded: Tjanstepension is paid entirely by the employer. It does not reduce your net salary.
ITP and SAF-LO (collective agreements)
Swedish collective agreements determine the contribution level for Tjanstepension:
ITP1 (private DC)
4.5% / 30%
Below/above 7.5 PBB. Defined contribution, the employee chooses funds.
SAF-LO (blue-collar)
4.5%
Of total salary. Agreement for blue-collar workers in the private sector.
KAP-KL (public)
4.5%
Municipal, regional and state employees.
Worked example (ITP1):
Salary of 600 000 kr SEK/year: Contribution below ceiling: 625 500 kr x 4.5% = 28 148 kr/year Contribution above ceiling: (600 000 kr - 625 500 kr) x 30% = −7 650 kr/year Total employer contribution: 20 498 kr/year
ISK (Investment Savings Account)
ISK (Investeringssparkonto) is an investment account with flat-rate taxation, introduced in 2012. It is one of the most popular savings products in Sweden with over 4 million holders.
- Flat-rate tax (schablonskatt): Annual tax of approximately 0.85% on the account value. Calculated on a deemed return (government borrowing rate + 1%).
- No capital gains tax: No taxation on realized gains within the account (purchases, sales, dividends).
- Full liquidity: Withdrawals possible at any time, with no fee or restriction.
- Broad investment range: Stocks, funds, bonds, ETFs listed on regulated markets.
- No contribution cap: Unlike French PER or UK ISA, there is no annual contribution limit.
ISK taxation vs traditional brokerage account
| Criterion | ISK | Brokerage account (AF) |
|---|---|---|
| Annual tax | ~0.85% of value | None |
| Capital gains | Not taxed | 30% tax |
| Dividends | Not taxed | 30% tax |
| Deductible losses | No | Yes (70%) |
| Liquidity | Full | Full |
| Ideal when return is | Above ~2.8%/yr | Below or negative |
Rule of thumb: ISK is more advantageous as soon as your return exceeds approximately 2.8%/year. For long-term equity investments (average return 7-8%/year), ISK is clearly superior. A traditional brokerage account (AF) is only preferable in case of losses (tax deduction possible).
Tjanstepension vs ISK: comparison
| Criterion | Tjanstepension | ISK |
|---|---|---|
| Who pays | Employer (100%) | You |
| Contribution taxation | Not taxed (employer contribution) | After income tax |
| Withdrawal taxation | Taxed as income (~25-30%) | No additional tax |
| Liquidity | Locked until retirement | Full, free withdrawals |
| Fund selection | Limited (employer's range) | Full (stocks, ETFs, funds) |
| Best for | Automatic pension base | Flexible, long-term savings |
Optimal strategy: Tjanstepension is a free benefit from your employer -- make sure you are covered by a collective agreement. Complement it with an ISK for flexible, tax-efficient savings. The two are complementary.
Optimization tips
- Check your collective agreement: Make sure your employer is covered by a collective agreement (ITP, SAF-LO, KAP-KL). Without one, you risk having no Tjanstepension at all.
- Choose your Tjanstepension funds: Do not stick with the default option. Compare fees and returns through platforms like Pensionsmyndigheten or minPension.se.
- Maximize your ISK: With its favorable flat-rate taxation, ISK is the ideal savings tool for long-term investing. Choose low-cost index funds.
- Consider salary exchange (lonevaexling): Some employers allow you to convert gross salary into extra Tjanstepension contributions (lonevaexling). This is beneficial if your salary exceeds 7.5 PBB, as you save on social contributions.
- Delay retirement: Each extra year increases your pension significantly (more contributions + lower annuity divisor). The Swedish system strongly rewards working beyond age 65.
- Visit minPension.se: This free service consolidates all your pensions (public + occupational + private) in a single overview. Perfect for planning and identifying gaps.