The Swedish Pensions Agency (Pensionsmyndigheten) says it sees a need for a new type of private pension savings scheme, as some sections of the population should be putting more money away for retirement.

In a report investigating this proposal, the authority said while the financial need for increased savings seemed to be low for most people in Sweden, there were nevertheless groups that needed to save more for their pensions.

The agency said in a statement: “A private pension savings scheme that everyone can take advantage of is currently lacking, and one should be created, but we are not taking a position on whether or not those savings should be tax deductible.”

The agency – which administers state pensions and pension-related benefits – said that although tax deductibility for private pension savings ended in 2016, private pension savings in Sweden were continuing to increase.

In the proposal, it said a potential new scheme should have its earliest withdrawal date linked to that of the current state pension, should have a minimum withdrawal period of 10 years and a lifetime payout period as its default, and should also be taxed at the same level as an occupational pension.

Erik Ferm, analyst at the Swedish Pensions Agency, said: “We note that having a higher level of pension savings is probably not in the interest of all employees, but there are groups that need to save more for their pensions and who cannot currently do so within a pension product.

“As things stand, whether people have the option of influencing their pension savings themselves, and can have those savings paid out for life, differs between those who have occupational pensions and those who do not,” he added.

The authority said one factor behind a lack of pension savings for some individuals was a having variable income which rarely reached the level for pension contributions.

A drawback of the private pension savings schemes currently available was that they lacked the option for lifelong benefit payments, it said.

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