Insights

Sweden Snapshot

Sweden has one of the world’s best rated retirement systems
Majority of the respondents believe they are most responsible for funding their retirement
Flexible access early in retirement with stable income in later years is most popular option for accessing retirement savings

Arnaud Bruyneel

Head of Nordics

01 October 2018

With a generous state pension, a majority of Swedes just about to enter retirement are somewhat confident of being able to maintain their desired lifestyle in retirement.

This report delves into findings from our Global Retirement Reality Report, focusing on how the expectations of Swedish people saving for retirement differ from the realities of those in retirement.

Here’s a preview of a few of the findings:

Optimism about retirement increases with age

The good news is that most Swedes believe it is important to be financially prepared for retirement. However, the majority of working age Swedes are not particularly optimistic about their financial situation in retirement — over half of workers more than five years from retirement state they are not optimistic.

Majority believe responsibility for adequate income in retirement lies with themselves

Even though there are high mandatory contribution rates as part of the government-run pension plans, surprisingly the majority of respondents believe that they themselves are most responsible for ensuring an adequate income in retirement. This view is even more marked in the working population than for retirees.

People prefer flexible access to their retirement savings

Swedes are aligned with the rest of our global survey population in asking for flexible access to their pension pot in the early years of retirement. However, the majority of people are mandated to convert their retirement savings into an annuity. That said, they have flexibility over when to covert to an annuity and can take advantage of partial conversion from age 61.

What does this mean for sponsors, schemes and the wider industry in helping members to achieve better retirement outcomes?

To read the full report, contact ssgadefinedcontribution@ssga.com.

Disclosures

This document contains certain statements that may be deemed forward looking statements. Please note that any such statements are not guarantees of any future performance, and actual results or developments may differ materially from those projected.

The information provided does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor’s particular investment objectives, strategies, tax status or investment horizon. Investing involves risk, including the risk of loss of principal. The whole or any part of this work may not be reproduced, copied or transmitted or any of its contents disclosed to third parties without SSGA’s express written consent.

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State Street Global Advisors Global Entities

2241927.3.1.GBL.RTL

Exp: July 31,2020

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