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READER QUESTIONS

Reader question: When am I eligible for a Swedish pension?

A reader got in touch to ask how long he had to work in Sweden before he was eligible for a pension. Here are Sweden's pension rules, and how you can get your pension when the time comes.

Reader question: When am I eligible for a Swedish pension?
A woman working at a standing desk in an office in Stockholm. Photo: Henrik Montgomery/TT

The Swedish pension is part of the country’s social insurance system, and it can seem like a confusing beast at times. The good news is that if you’re living and working here, you’ll almost certainly be earning towards a pension, and you’ll be able to get that money even if you move elsewhere before retirement.

You will start earning your Swedish general pension, or allmän pension, once you’ve earned over 20,431 kronor in a single year, and – for almost all kinds of pension in Sweden – there is no time limit on how long you must have lived in Sweden before you are eligible.

The exception is the minimum guarantee pension, or garantipension, which you can receive whether you’ve worked or not. To be eligible at all for this, you need to have lived in Sweden for a period of at least three years before you are 65 years old. 

“There’s a limit, but it’s a money limit,” Johan Andersson, press secretary at the Swedish Pension Agency told The Local about the general pension. “When you reach the point that you start paying tax, you start paying into your pension.”

“But you have to apply for your pension, make sure you get in touch with us when you want to start receiving it,” he said.

Here’s our in-depth guide on how you can maximise your Swedish pension, even if you’re only planning on staying in Sweden short-term.

Those who spend only a few years working in Sweden will earn a much smaller pension than people who work here for their whole lives, but they are still entitled to something – people who have worked in Sweden will keep their income pension, premium pension, supplementary pension and occupational pension that they have earned in Sweden, even if they move to another country. The pension is paid no matter where in the world you live, but must be applied for – it is not automatically paid out at retirement age.

If you retire in the EU/EEA, or another country with which Sweden has a pension agreement, you just need to apply to the pension authority in your country of residence in order to start drawing your Swedish pension. If you live in a different country, you should contact the Swedish Pensions Agency for advice on accessing your pension, which is done by filling out a form (look for the form called Ansök om allmän pension – om du är bosatt utanför Sverige).

The agency recommends beginning the application process at least three months before you plan to take the pension, and ideally six months beforehand if you live abroad. It’s possible to have the pension paid into either a Swedish bank account or an account outside Sweden.

A guarantee pension – for those who live on a low income or no income while in Sweden – can be paid to those living in Sweden, an EU/EEA country, Switzerland or, in some cases, Canada. This is the only Swedish pension which is affected by how long you’ve lived in Sweden – you can only receive it if you’ve lived in the country for at least three years before the age of 65.

“The guarantee pension is residence based,” Andersson said. “But it’s lower if you haven’t lived in Sweden for at least 40 years. You are eligible for it after living in Sweden for only three years, but it won’t be that much.”

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For members

MY SWEDISH CAREER

My Swedish Career: How labour market training got me a job at Capgemini

Two years after she arrived in Sweden, Shreya Sai, from India, decided to use Sweden's 'labour market training' system to learn to code from scratch. A year later she was working as a developer at Capgemini.

My Swedish Career: How labour market training got me a job at Capgemini

Sai moved to Älmhult, the small town that hosts Ikea’s headquarters, back at the start of 2019, after her husband got a job working for the flatpack furniture giant.

She is a qualified physiotherapist and had spent two years practicing back home in India. But it didn’t take long for her to realise that it would be difficult to work in Sweden in her chosen profession, given the difficulty of getting a license to practice. 

“After coming over here, I saw that there were so many hurdles in medical fields, and it was a very long procedure of almost four years [to convert],” she says. 

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She worked as a substitute teacher, but after almost two years in Sweden, her handler at the Swedish Public Employment Services suggested she retrain. 

“I had a chat with my case officer. And I told her about my problems, the language barrier, and how, in the past, I had studied something related to IT, so that’s why she suggested I go for these certifications.” 

The case officer enrolled Sai on a six-month full stack developer course at Lexicon, an education supplier in nearby Växjö. It was a tough few months, but Sai didn’t lose hope. She completed the course in February 2021, and then started as an intern at a Stockholm startup the next month. 

“It was really tough for me initially, but anyhow, I grabbed some momentum and started understanding coding,” she remembers. “It’s so tough to be a coder, and it is the purest pressure in my whole training time, because I didn’t know anything about coding. All types of coding were alien to me.”  She had last studied computers when she was at upper secondary school.

The Covid-19 pandemic was still ongoing, so both the course and the internship were done through remote learning, but that did not stop her from getting a four-month contact as a web developer with a heating technologies company upon graduation.

Then in February this year, she started a permanent contract at Capgemini, after being hired through their Ignite graduate program. 

Sai believes that the Public Employment Service’s labour market training courses are a good option for newcomers to Sweden, with some 400 courses on offer, mostly provided by private sector suppliers such as Lexicon, Lernia, or AU utbildning. 

 You can see a full list of available courses here. And here is some information on going on a study visit.

“You choose which field you want to belong to, and when you choose, they give you some type of study visits,” she says. “And then you go and explore and receive information, and then your case officer enrolls you if there is a vacancy after a short interview.”

In May, the employment service reported that 20,210 people had undertaken labour market training in 2021, and that there were currently 40,000 people either awaiting a decision or engaged in labour market training. 

The program is expensive, costing Sweden’s government 1.5 billion kronor in 2021, but according to the report, 43.7 percent of those who took courses were working 180 days after their course was completed, and 36.2 percent were working 90 days after the training finished. 

While studying, you still qualify for unemployment benefit from the Swedish Social Insurance Agency.

Sai says that there were people on her coding course from Ireland, Israel, Iran, Sweden and Poland, among other countries, and that only about 20 percent had a direct background in IT, with the rest having had careers in other fields.

She was the only one in the class with absolutely zero experience with computers or coding, however. 

“It was very, very, very hard for me. I was like, ‘I will quit it. I won’t be able to do it.’ But my family supported me a lot. And they said, ‘you have to do it, you can’t back out because you can you don’t have any other option'”.

She lacked the qualifications, she says, to do a less intensive computer programming course at a university, and lacked the qualifications needed for other jobs in Sweden. 

“I used to like studying day and night, and somehow, I managed it. Right now, I will not say that I’m the best or a perfect coder in today’s world, but I’m working towards becoming a good coder.” 

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