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Swedes should expect to work longer: Reinfeldt
Swedes will need to start their careers earlier and retire later in life if the Swedish welfare state is to remain sustainable, Prime Minister Fredrik Reinfeldt said on Tuesday in conjunction with the release of new government report.
Published: 06 Mar 2013 08:25 CET
"We're going to need to work a little more and a little later in life if we're going to meet our welfare ambitions," Reinfeldt told the TT news agency.
Reinfeldt's comments came as the government Commission on the Future (Framtidskommissionen) issued its report on an aging population and the workforce.
Simply raising taxes won't be enough to sustain expenditures associated with Sweden's welfare state, the report finds, arguing instead for raising the retirement age in line with increases in life expectancy.
Reinfeldt refused to offer any specifics on how much later in life Swedes should expect to work, explaining the decision will be up to the individual.
"It's not going to be the same answer for everyone as everyone's situation is different," he said.
The prime minister emphasized that he's in favour of using incentives such as tax breaks to help entice people to continue working.
The report also found that employers are going to have to adjust to the needs of older workers and that Swedes can expect to need to change careers in order to work longer
In addition, young Swedes need to finish their studies and enter the labour market sooner.
"We can have a continued positive development our welfare standards, but it can't stay on autopilot," the report said.
"Doing nothing at all is a strategy that risks bringing about major and uncontrolled economic imbalances between generations and regions."
TT/The Local/dl
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Now we have run out of money, and you will all have to work harder and longer and pay more taxes than your parents and grandparents, or we will end up like the PIGS."
There is no welfare in retiring later in life! If you have to do that, then the state is not a welfare state, it's a state like anywhere else.
You consider a land has a welfare system when all members of the society (Swedes and non-Swedes) are well-being, healthy, happy and prosperous! And if there is not such a thing, then that society would not be considered a welfare state!
This isn't totally Mr Reinfeldt's fault. This has been brewing for decades. Previous Social Democrat goverments set up an unsustainable pension system that would, sooner or later, collapse. Mr Reinfeldt is the first Prime Minister to face up to it, tell people the truth, and take the hard and unpopular decisions necessary to prevent that collapse.
This would be another solution.