Politicians in Sweden voted to raise the retirement age, according to Swedish public television broadcaster SVT.
When are the changes taking place?
The changes will take effect in 2020. At this point, the earliest age people in Sweden will be allowed to withdraw their pension will be raised from 61 to 62.
In 2023, the minimum age will increase again to 63.
“We have a relatively sustainable pension system in Sweden, but in order for it to last, we must be able to raise the retirement age as we are becoming older.”
Who will be most affected?
The earliest age for withdrawing the “garantipension” (“guaranteed pension” -- paid to those who have had little or no pension-earning income during their lifetime) will be raised in 2023 from 65 to 66.
People receiving only the guaranteed pension will be impacted most by Wednesday's decision.
Those who receive only the guaranteed pension are more likely to be women, and are also more likely to be those who have physically demanding jobs. This has led to criticism by the Left Party.
“One group is clearly disadvantaged, those who only have a guaranteed pension. They do not earn from working anymore. But it’s a fairly small group.”
What else will change?
As the retirement age increases, interrelated benefits such as unemployment benefits, survivor's pension, old-age support, benefits for those living with illness or disability, and housing allowance will be reviewed and changed.
“All these systems are interconnected and therefore it is important that all of them are linked to this target age.”
Will there be more changes to retirement in the future?
People in Sweden are able to start claiming their general pension from 61 years of age. They are able to continue to work until the age of 67.
With the new proposal, this age range will be change to 64-69 years. The changes will take place over time. They will be fully implemented by 2026.
After 2026, the age range will be adjusted to a so-called target age (riktålder). From this point, the various pension ages will be automatically increased by two-thirds of the amount by which life expectancy has also increased.
“This will apply from 2026 and will automatically be adjusted as the average life expectancy increases.”
For more on retirement and age discrimination in Sweden, read our summary of Swedish age discrimination law.