Updated

The Swedish public pension has two parts with different logics. The income pension is pay-as-you-go: a fixed share of pensionable income, up to an income ceiling, is credited to an account uprated with an income index, and on drawing, the balance is divided by a divisor depending on age and life expectancy. The premium pension is funded: a smaller share is invested in funds the individual chooses, and the outcome depends on that investment. The ceiling is decisive for high earners, because income above it generates no public pension at all. This calculator shows both parts and what one or two years of later drawing means, since the change is lifelong. The guarantee pension for low income and the housing supplement are not included, because both are income-tested.

Inkomstpension + Premiepension

Calculator Swedish Public Pension

Estimate your Swedish pension under the NDC system (notional defined-contribution): 16% into Inkomstpension + 2.5% into Premiepension.

Your details

34 yrs
65 yrs
450,000 SEK
10 yrs
500,000 SEK
80,000 SEK

Summary

You will receive net

22 347 kr

per month in retirement

You currently earn

26 250 kr

net per month

Income gap

-3 903 kr

per month

In practice: Out of your gross salary of 450 000 kr/year (37 500 kr/month), you pay roughly 2 625 kr/month in pension contributions (employee share). The total contribution (18.5%) is split between Inkomstpension (16%) and Premiepension (2.5%).

At age 65, you would receive 22 347 kr net/month, which represents 85% of your current net salary. You would lose 3 903 kr/month compared to today.

Total pension / month

31 924 kr

Replacement rate: 85%

Inkomstpension

24 254 kr

Notional accounts (16%)

Premiepension

7 670 kr

Funded (2.5%)

Flexible retirement age

67 yrs

Available from age 63

Pension composition

6500 kr26000 krInkomstpensionPremiepension

Cumulative pension payments

67 yrs71 yrs75 yrs79 yrs85 yrs0k2500k5000k7500k10000k

Frequently Asked Questions

How much income pension will I get at 65?
Your income pension depends on your total lifetime earnings. 16% of your pension-qualifying income is set aside annually. At withdrawal, your pension balance is divided by a divisor based on your birth cohort. Someone with average salary for 40 years can expect approximately SEK 14,000-16,000/month before tax.
What is premium pension and how do I choose funds?
Premium pension is 2.5% of your pension-qualifying income invested in funds you choose. You can select up to 5 funds through Pensionsmyndigheten's fund marketplace. If you don't make an active choice, money is placed in AP7 Såfa, the state-managed default option.
Do I qualify for guarantee pension with low income?
Yes, the guarantee pension is a safety net for those with no or low income pension. Full guarantee pension requires 40 years of residence in Sweden and provides approximately SEK 11,988/month (2026) for singles. It decreases krona-for-krona against income pension.
Can I claim pension and keep working in Sweden?
Yes, from age 63 you can take out public pension partially (25%, 50%, 75%, or 100%) while continuing to work. You earn new pension on your salary. There is no income test – you keep your full salary plus pension. The minimum age was raised from 62 to 63 in 2023.
How does part-time work affect my Swedish pension?
Part-time work reduces pension-qualifying income and therefore contributions (16% + 2.5% on a lower amount). Working 75% for 10 years reduces your future pension accordingly. Childcare years (barnår) can provide pension credits during parental leave for the lower-earning parent. The credit is assigned automatically but can be transferred to the other parent by notifying the Swedish Pensions Agency.

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Understanding the Swedish public pension

The Swedish defined-contribution system

The Swedish pension system, which underwent a landmark reform in 1998, is a model based on defined contributions (DC), not defined benefits. The total contribution is 18.5% of pensionable income, split across two pillars:

Pension = Account balance / Annuity divisor
  • Inkomstpension (16%): Notional defined-contribution (NDC) accounts. The capital is virtual and indexed to average wage growth.
  • Premiepension (2.5%): Individual funded accounts. The saver chooses their investment funds.
  • Income ceiling: 8.07 income base amounts = ~673 038 kr SEK/year (2026)
  • Garantipension: Minimum pension for residents with low or no income (from age 66)
Inkomstpension (notional accounts)

Inkomstpension accounts for the largest share (16%) of pension contributions. It is an NDC system (Notional Defined Contribution): contributions are recorded on an individual notional account, but the money finances current pensions (pay-as-you-go).

Contribution rate

16%

of pensionable income

Notional indexation

~2-3%/yr

Follows average wage growth (income index)

  • The account balance is revalued each year according to the income index (inkomstindex)
  • An automatic balancing mechanism (the brake) reduces indexation if the system runs a deficit
  • The notional account is divided by an annuity divisor (delningstal) to calculate the annual pension
Premiepension (funded)

Premiepension (2.5%) is the fully funded component of the system. Contributions are invested in funds chosen by the insured person.

Individual choice

  • Over 800 funds available
  • Up to 5 funds at a time
  • Unlimited free switches
  • Historical average return: ~6%/year

AP7 Safa (default fund)

  • State-managed fund for non-choosers
  • Life-cycle strategy
  • 100% equities before age 55
  • Gradual shift to bonds

Notable: The AP7 Safa fund has outperformed the majority of private funds since inception, thanks to its extremely low fees (~0.05%) and its globally diversified investment strategy.

Garantipension (minimum pension)

Garantipension is a safety net for individuals with low or no pension income. It is financed through taxes (not through contributions).

Maximum amount (single)

~11 988 kr/mo

With 40 years of residency in Sweden

Earliest eligibility age

66 yrs

Since 2023 (previously 65)

  • Residency requirement: 40 years in Sweden for the full amount, reduced by 1/40 for each missing year (minimum 3 years)
  • Offset: Garantipension is reduced krona for krona against your Inkomstpension
  • Phase-out threshold: If your Inkomstpension exceeds approximately 13 662 kr/month, you receive no Garantipension
The annuity divisor and life expectancy

The annuity divisor (delningstal) is the key element that converts accumulated capital into an annual pension. It is based on the life expectancy of your birth cohort at the time of retirement.

Retirement at 63

  • Higher annuity divisor (~18.5)
  • Lower monthly pension
  • Fewer accumulated contributions
  • No Garantipension (before age 66)

Retirement at 70

  • Lower annuity divisor (~14.3)
  • Significantly higher monthly pension
  • More accumulated contributions
  • Double effect: more capital, lower divisor

Demographic challenge: As life expectancy increases, the annuity divisor rises for each new cohort, which automatically lowers the pension level at the same retirement age. This is a built-in balancing mechanism of the Swedish system.

The Swedish model as a global benchmark

The Swedish 1998 reform is considered one of the most successful in the world. Many countries have drawn inspiration from it (Italy, Poland, Latvia, Norway...).

  • Automatic balance: The automatic brake and the life-expectancy-linked annuity divisor guarantee financial sustainability without political intervention.
  • Orange envelope: Every year, each Swede receives an "orange envelope" with detailed information about their Inkomstpension and Premiepension accounts, along with a projection of their future pension.
  • Freedom of choice: Savers choose their Premiepension funds and their retirement age (flexible from age 63).
  • Transparency: The website minPension.se lets every citizen see a consolidated view of all their pension entitlements (public + occupational + private).
  • Current debate: The gradual increase in the minimum age (from 61 to 63, and possibly 64) aims to maintain pension levels as life expectancy rises.