New pension rules: why you should care already today

The Swedish pension system is moving toward one of the largest changes in modern times, and even though many of us still have many years left to work, there are plenty of reasons to understand how this affects you as an individual. This applies whether you are 40 or 60 years old.

The biggest change in the pension system is the introduction of the target age as of 1 January 2026, replacing the fixed pension age previously in place. For those who want to learn more in detail, we recommend the Swedish Pensions Agency’s website, but below is a brief overview of what the introduction of the target age means and how it may affect you.

The target age is based on adjusting the pension age to the population’s increasing life expectancy. Instead of a fixed limit, the target age is adjusted continuously based on how long we are expected to live. This means that both the timing for when certain benefits can be accessed and when various safety nets begin to apply will shift over time. With certain exceptions, the new system means that the minimum age for withdrawing income and premium pensions will be three years before the target age. The purpose of these changes is to create a more sustainable system in which working life and retirement follow each other in a more balanced manner.

For individuals, the introduction of the target age means greater predictability, as the target age follows a clear formula and is announced well in advance. But it also means a clearer responsibility to plan one’s own finances, even for those who still have many years left until retirement. Small adjustments in savings, returns or strategy can have a major impact over several decades.

What can I do myself?

There are several ways to influence your future pension. Some employers offer salary exchange opportunities for their employees, and in addition to occupational pensions there are several options for complementary savings.

SaveLend’s savings strategies are a strong addition to traditional pension savings for those who want to strengthen their future income when it is time to step away from working life. Our strategies are also well suited for long term savings. The compounding effect allows returns to grow increasingly as capital continues to work, and with monthly savings you gradually build up a larger amount without having to time the market. This means that even smaller amounts can provide a meaningful addition to your future pension. And if you already complement your pension savings with for example shares or funds, our strategies serve as a valuable way to diversify across asset classes with lower correlation to stock market fluctuations.

When should I start saving for retirement then?

The classic saying goes that it is never too late to start, but at the same time it is never too early. Retirement is something that eventually becomes a highly relevant part of everyday life for most of us, and you already have the opportunity to influence how strong your future financial situation as a retiree will be.

If you have questions or want to learn more about saving in our strategies, you are welcome to contact us.