• Sweden edition
 

Pension gaps continue to grow: report

Published: 03 Apr 2010 10:10 GMT+02:00
Updated: 03 Apr 2010 10:10 GMT+02:00

The gap has increased both among pensioners and in relationship to the rest of the population, reported Svenska Dagbladet (SvD) newspaper. Over the 10 years, pensioners' after-tax income grew by 24.5 percent while that of the overall population grew by 34 percent.

Over the ten year period, the median annual income increase for a retiree was 31,000 kronor ($4,100) while the median annual income increase for a 45-year-old salaried employee was 54,000 kronor ($7,500).

The statistics do not include 2009 tax reductions of 5.5 billion kronor for pensioners. Neither do they control for the negative effects of the financial crisis on pensions.

Last weekend, Sweden's centre-right government indicated it will include tax cuts for pensioners amounting to five billion kronor ($688 million) in its impending spring budget.

The tax cuts are planned to take effect from January 1st 2011 and will entail a reduction of 1,200-1,400 kronor per year for people on a guarantee pension and born before 1937. A pensioner with an income of 150,000 kronor can expect to retain 2,400 to 2,800 kronor more than is currently the case.

Combined with the government's two previous rounds of tax cuts, guarantee pensioners will see their tax bills drop by 4,500 to 5,400 kronor per year.

According to SvD, Social Democrat Thomas Östros said that "a real first step should be made to reduce the gap and the rest of it should be addressed as soon as possible during the next mandate period."

Swedish Minister of Finance Anders Borg said that there may be grounds to take additional measures to reduce tax differentials.

TT/The Local (news@thelocal.se)

Your comments about this article

16:51 April 3, 2010 by vladd777
Immigrants who have not lived and worked in Sweden for 40 years and have only worked part-time are the biggest losers.
20:55 April 3, 2010 by wxman
Sounds like it's time for some Obama-style redistribution to make things fair!
08:36 April 5, 2010 by Kronaboy
Pretty much the same problem the world over, the decision we have to make is do we take the route of UK and allow society to crumble to support the market, or follow the Japanese model and ensure social cohesion no matter what the cost. We have to decide fairly soon the post war baby boomers have already started retiring, and I don't think tinkering with minor tax cuts (usual UK Policy) is going do much more than make the rich even richer. Ragenomics, Thatherisim, Trickle down economics, monetarism, free market what ever you want to call it doesn't work, as the past 3 decades have shown the rich tend to be made up of the more selfish sections of society who like to keep their wealth for them selves (buying yachts etc...) rather than sharing with rest of society, i.e. paying a fair wage.
Today's headlines
Stockholm 'sub hunt'
Military seeks 'patience' in sub search
The search for the missing 'submarine' is now in its sixth day. Photo: TT

Military seeks 'patience' in sub search

Sweden's military says it has no plans to downsize the search for a possible foreign submarine and is prepared to force any suspect weapon to the surface of the sea, "with armed force if necessary". READ  

Health
Swedish farmers contracted swine flu
Swine flu can spread between pigs and humans. Photo: TT

Swedish farmers contracted swine flu

A human strain of the swine flu virus normally only found in pigs was discovered in Sweden earlier this year, the country's Public Health Agency has revealed. READ  

National
Stockholm bomb investigation to cease
The suicide bombing took place in 2010. Photo: TT

Stockholm bomb investigation to cease

Sweden's Security Service (Säpo) is expected to announce that it will stop its core investigation into a suicide bombing in Stockholm four years ago. READ  

Stockholm 'sub hunt'
Sweden ready to use force to surface sub
Photo: TT

Sweden ready to use force to surface sub

Sweden's military says it has no plans to downsize the search for a possible foreign submarine and is prepared to force any suspect vessel to the surface of the sea, "with armed force if necessary". READ  

National
Chainsaw man destroys house in family feud
The man used a chainsaw to destroy most of the Lidköping home. Photo: Shutterstock

Chainsaw man destroys house in family feud

A man in central Sweden has gone on a rampage with a chainsaw after a family housing dispute took an unexpected turn. READ  

National
Man frames beggar with stolen tablet computer
The beggar was detained for almost 24 hours after the accusation. Photo: TT

Man frames beggar with stolen tablet computer

A man in southern Sweden has landed in hot water after he stole a tablet computer, gave it to a beggar, then reported her to the police. READ  

Stockholm 'sub hunt'
Sub hunt: 'There is something out there'
Former navy officer Bosse Linden in Vaxholm. Photo: Maddy Savage

Sub hunt: 'There is something out there'

Stockholm's archipelago is the focus of the biggest military operation in Sweden since the Cold War. The Local is in the region's capital, Vaxholm, to see what residents make of the drama. READ  

Presented by CurrencyFair
CurrencyFair: Why it pays when making overseas transfers
CurrencyFair co-founder Brett Meyers

CurrencyFair: Why it pays when making overseas transfers

Tired of losing money when you send cash back home? Join other expats in Sweden who avoid bank fees and hidden charges by sending money internationally with CurrencyFair, an online marketplace where secure transactions are faster and cheaper. READ  

European Union
Extremist saves Sweden Democrats' EU group
Sweden Democrat leader Jimmie Åkesson. Photo: TT

Extremist saves Sweden Democrats' EU group

The EU group that bound several Eurosceptic parties including the Sweden Democrats has been saved by an MEP from a far-right Polish group, just a week after it appeared to have crumbled, according to a UK press report. READ  

Stockholm 'submarine' hunt
Timeline: Mystery 'submarine' in Stockholm
Sweden's Armed Forces are out in force after reports of a foreign vessel in the Stockholm archipelago. Photo: TT

Timeline: Mystery 'submarine' in Stockholm

The world has had its periscope on Sweden since the Swedish military launched an extensive hunt for what is rumoured to be a damaged Russian submarine in the Stockholm archipelago. Here is the timeline of events so far. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
National
Sweden ready to use force to surface sub
National
Timeline: Mystery 'submarine' in Stockholm
National
Dentist gives free care to Roma beggars
Business & Money
Get your own office in Gothenburg or Stockholm - free for a day
Gallery
Property of the week: Malmö
Blog updates

21 October

Denna & den här (The Swedish Teacher) »

"?Denna? or ?den hr?? Swedish language students often ask question about different pronouns. One pronoun that especially..." READ »

 

19 October

Getting it (Blogweiser) »

"Follow Joel Sherwood on FB Few watch baseball in Sweden. This is excellent when your team loses..." READ »

 
 
 
Gallery
PHOTOS: 'Foreign activity' in Swedish waters
National
Sweden deploys troops over underwater threat
Gallery
People-watching: October 19th
TT
Society
QUIZ: How good is your Swedish?
National
A Touch of Scandinavia: Reindeer in the kitchen
Lifestyle
What's on in Sweden: October 17th - 24th
Society
The nudity... and nine other things expat men notice in Sweden
Gallery
People-watching: October 15th
Gallery
Your views: Should outdoor smoking be banned in Sweden?
Business & Money
Sweden has 'large hole' in finances
Sponsored Article
Introducing... Finding a job in Stockholm
Society
Monster salmon caught in northern Sweden
Gallery
Property of the week: Lorensberg
National
Scandinavia's child bride
National
Ebola crisis: How is Sweden preparing?
Lifestyle
Sweden's The Bridge to become 'more Danish'
Business & Money
How Sweden is becoming a cashless society
Gallery
Stockholm Burlesque Festival 2014
National
How a little red horse became a symbol for Sweden
Gallery
People-watching: October 12th
Business & Money
The hottest start-ups from southern Sweden
National
What's on in Sweden: October 10th - 17th
National
Stockholm is 'best' region for well-being
Gallery
People-watching: October 8th
National
Five facts to know about Patrick Modiano
Society
My Swedish Career: A French fashionista in Sweden
Society
Swede's anti-bully Facebook tale goes viral
Society
Have you seen Sweden's viral subway cancer campaign?
National
Isis: Swedes linked to Turkish prisoner swap
National
Should Swedes be banned from buying sex abroad?
Gallery
Fredrik Reinfeldt's leaving presents
National
Five Swedish TV shows you shouldn't miss
Gallery
A tool belt, a casserole, and a book. Fredrik Reinfeldt's parliament gifts
TT
Lifestyle
Top five winter festivals in Sweden
TT
National
Sami reindeer herders win mine reprieve
Gallery
Property of the Week: Gamla Enskede
Sponsored Article
How to catch the first lobster of the year
Politics
Ten new minister faces you should know
Tech
First womb transplant baby in world born in Sweden
Gallery
People-watching: October 5th
Team SCA
Sponsored Article
All-female SCA team takes off on Volvo Ocean Race
Latest news from The Local in Austria

More news from Austria at thelocal.at

Latest news from The Local in Switzerland

More news from Switzerland at thelocal.ch

Latest news from The Local in Germany

More news from Germany at thelocal.de

Latest news from The Local in Denmark

More news from Denmark at thelocal.dk

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in France

More news from France at thelocal.fr

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Norway

More news from Norway at thelocal.no

992
jobs available
Swedish Down Town Consulting & Productions
Swedish Down Town Consulting & Productions is an innovative business company which provides valuable assistance with the Swedish Authorities, Swedish language practice and general communications. Call 073-100 47 81 or visit:
www.swedishdowntown.com
PSD Media
PSD Media is marketing company that offers innovative solutions for online retailers. We provide modern solutions that help increase traffic and raise conversion. Visit our site at:
http://psdmedia.se
If you want to drink, that’s your business.
If you want to stop, we can help.

Learn more about English-language Alcoholics Anonymous in Sweden. No dues. No fees. Confidentiality assured.
AA-EUROPE.ORG/SWEDEN