The Swedish Pensions Authority (Pensionsmyndigheten) has criticised recent measures taken by the last government to increase state pension provision saying they have undermined a key principle of the Nordic country’s pension system.
The state agency made the comments as it launched a series of forthcoming reports that it said were intended to contribute to “a structured discussion about possible options for the pension system and about what principles and goals it may have”.
Ole Settergren, head of analysis at the agency, said: “Our assessment is that the introduction of the income pension supplement and the increase in the guarantee pension have undermined the pension system’s basic lifetime income principle.”
Last year, Sweden introduced the income pension supplement as a new benefit for pensioners with the stated aim of improving the pension for those who had had a long working life with low pay, and in August 2022 the guaranteed pension was substantially increased, according to the authority.
“Through the report series, we want to contribute to ensuring that future pension decisions are thought through,” Settergren said.
The pensions authority said the introductory report of the series it was presenting today, entitled Questions on the Choice of Path for the Pension System (Vägvalsfrågor för pensionssystemet), described three requirements that a clear and long-term pension system had to meet.
The first requirement concerned clear goals, it said; the second was about clear principles on what should determine pension size, and the third related to financial stability and fairness between generations.
The four main reports are then scheduled to be published on 7 December, 1 February 2023, 1 March and 29 March, the agency said.
Settergren said his organisation did not take a position on whether or how the pension system should be changed.
“But regardless of which pension system Sweden has, the system should be clear and designed for the long term,” he said.
“There is a need among pension savers to be able to plan for their pension well in advance,” he said.
Sweden had a major change of government following the 11 September general election, with the previous Social Democrat government being replaced by a coalition led by Moderate Party leader Ulf Kristersson, and depending on support from the anti-immigration Sweden Democrats.
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