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Saving goal
Saving for retirement
Your pension is one of the most important financial building blocks in life. With long-term and disciplined saving, you can create more freedom when you decide to scale down or stop working. Time is your best friend, and the earlier you start, the more your capital can grow.
Why save extra for retirement?
Let time work for you
Public and occupational pensions often provide a solid base, but for many people they are not enough to fully support the lifestyle they want in retirement. By adding a personal, long-term savings plan, you can increase your future income level, build more flexibility into your finances and have greater influence over when and how you retire.
- Very long time horizon
- Retirement savings often span several decades, making them ideal for equity and fund investing.
- Complements your employer pension
- Personal savings provide extra security beyond public and occupational pensions.
- Flexibility in retirement
- More personal capital gives you more freedom in how and when you retire.
Guide
How to supplement your pension
Most people will receive a pension that is lower than the income they had during their working life. By saving on your own, you can reduce that gap and create greater financial freedom in retirement.
- The pension gap
- A rule of thumb is that the combined pension, public plus occupational, often amounts to around 50 to 70 percent of the final salary. The higher the income, the lower the share. The difference is sometimes called the pension gap. Personal savings are the simplest way to fill that gap and also give you full flexibility in how and when you withdraw the money.
- ISK for retirement saving
- An investment savings account (ISK) is often a good choice for personal retirement saving. Taxation is straightforward, a low flat-rate yield based on the account value, and you decide when to make withdrawals. Unlike traditional pension insurance, there are no lock-in periods or restrictions on how the money can be used.
- Start early, but it is never too late
- Every extra year gives compounding more time to work. Someone who starts saving at 30 has 35 years until retirement. Even starting at 45 leaves 20 years, which is still a long time horizon for equity funds. The most important step is to start, regardless of age.
- Equity funds even in retirement
- Retirement does not mean the saving horizon ends. Many retirees need capital for 20 to 30 years after they stop working. It can therefore be wise to keep part of the capital in equity funds to maintain purchasing power, while the rest is placed more conservatively for ongoing withdrawals.
The pension system
Three pillars build your pension
The Swedish pension system rests on three pillars. Public pension from the state, occupational pension from your employer, and your own personal savings. The first two often provide a solid base, but for most people they are not enough to maintain the lifestyle they want in retirement.
01
Public pension
Based on your lifetime income and paid by the state. The income pension and premium pension form the foundation but rarely cover the full need.
02
Occupational pension
Paid by your employer. The size varies depending on collective agreements and form of employment. Check what applies to you.
03
Personal savings
The part you control. By saving long term in equity funds, for example, you can supplement the other pillars and create greater financial freedom.
Common questions about pension saving
Explore more saving goals
Related saving goals
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