Sweden said it would raise the earliest retirement age from 61 to 64 in order to secure future pensions.
“We are reforming the Swedish pension system in order to raise pensions and increase security for both today's and future pensioner,” Social Affairs Minister Annika Strandhäll and Financial Markets Minister Per Bolund said in a statement.
“As we are living longer, we have to work longer if pensions are going to continue to grow. This agreement is an important step toward a longer working life and thereby higher pensions and more resources for the welfare state,” representatives of the four centre-right opposition parties said in the same statement.
The increase in the retirement age will be carried out in stages, and completed in 2026.
Under the current system, people working in Sweden can legally retire at the age of 61, though for financial reasons most choose to work longer. The average retirement age is 64.5 years, according to official statistics.
With the reformed system, you will have the right to work until the age of 69, compared to 67 under the current system. If you and your employer both agree, you can however work longer.
Pensions in Sweden vary widely depending on the age a person retires. Levels are often determined by the collective wage agreements negotiated between employers and unions.
The pension system has three components: a pension paid by the state based on an employee's salary, a complementary pension paid by the employer, and, optionally, private pension savings.
The proposal presented on Thursday was put together by a cross-party group of the ruling centre-left coalition government as well as the four parties in the centre-right Alliance opposition.