Sweden has moved to a “target age” for retirement, replacing fixed ages, as of the start of this year. The shift, impacting future pension benefits for all generations, ties retirement age to life expectancy and aims to ensure the long-term sustainability of the country’s pension system. The target age is currently set at 67 for those retiring between 2026 and 2031, a decision finalized in 2020, but projections will continue as demographics evolve.
Sweden’s pension system underwent significant changes at the start of the year, most notably with the introduction of a “target age” replacing fixed retirement ages. This shift means retirement ages will vary between generations and are adjusted based on life expectancy.
The target age is set at 67 for the years 2026–2031.
“We simply need to work longer to ensure pensions aren’t reduced,” explained Monica Zettervall, a pension expert at the Swedish Pensions Agency. “This is because people are living longer than when the previous pension system was established. This will impact all generations, and the target age is determined six years before it takes effect.”
“The age that has been decided for this year was already finalized in 2020. There are also projections made for other birth years, but those are just projections. It’s difficult to predict how life expectancy will evolve over time.”
“We simply need to work longer to ensure pensions aren’t reduced. This is because people are living longer than when the previous pension system was established,” says pension expert Monica Zettervall.
Photo: Pensionsmyndigheten
The changes to the Swedish pension system reflect a global trend of adjusting retirement ages to account for increasing life expectancies and the financial sustainability of pension programs. The new system aims to ensure future retirees receive adequate benefits as populations age.
For many young people, retirement remains a distant concern. Stella Wenström, 20, who works at Bakfickan in Vimmerby, hasn’t spent much time considering the issue yet, but believes she will work as long as her health allows.
“It depends on how energetic I am, definitely. I think some people might look forward to retirement, that it’s something you strive for,” she said.
Wenström also noted that it’s increasingly common for people to continue working even after reaching the target age.
“Many people choose to work after retirement age as well.”
Stella Wenström, who works at Bakfickan, believes she will work as long as her health permits.
Photo: Hilde Barstad Axelsson
Victoria Allard, 36, a store manager at Cubus for the past four years, also expressed a positive outlook on continuing to work as long as she remains healthy.
“I enjoy working. It’s a social thing to be out and be a part of society. You see many older people today who isolate themselves, especially after COVID. That makes you a little nervous about doing the same,” Allard said.
Victoria Allard, Cubus store manager, enjoys her work and hopes to continue for the foreseeable future.
Photo: Hilde Barstad Axelsson
Allard believes that while retirement is important, it doesn’t necessarily mark the end of a person’s working life.
“Of course, you should enjoy life and have the right to do so when you retire. But as long as you’re healthy, I also want to be energetic, fit, and involved, and see the young people in the store,” she added.
