Swedish public pension

Last updated 2026-05-08

Work in Sweden? Learn how the Swedish public pension is funded, how much is paid into your pension and which parts make up allmän pension.

Three elderly women toasting and laughing — *Lieselotte van der Meijs/imagebank.sweden.se*

How the public pension is funded

Each year, 18.5 % of your pensionable income is allocated to the Swedish public pension.

Most of this amount, 16 %, goes to your income pension, while 2.5 % goes to your premium pension.

The public pension is mainly funded through employer-paid social security contributions and taxes.

The structure of Swedish public pension

The Swedish public pension consists of different elements, some of which are linked to your income.

Income pension

The income pension makes up the largest part of the Swedish public pension. Of the 18.5 % allocated to your public pension each year, 16 % goes to your income pension.

Premium pension

Of the 18.5 % allocated to your public pension each year, 2.5 % goes to your premium pension.

Unlike the income pension, you can decide how your premium pension is invested. If you want to choose a different fund than the default fund AP7, you can do so by logging in at the Swedish Pensions Agency, Pensionsmyndigheten.

Guarantee pension

A guarantee pension is a state-funded pension for people who have had little or no income during their working life.

To receive a full guarantee pension, you must normally have lived in Sweden for 40 years. The guarantee pension may be reduced if you receive income pension, foreign pension or other pension income.

When your guarantee pension is calculated, insurance periods from other EU/EEA countries are also taken into account in accordance with EU rules.

The guarantee pension is only paid to pensioners living in Sweden.

You may be entitled to guarantee pension from the age of 66 if you have a low or no income-based pension. From 2026, the age limit will gradually increase in line with life expectancy.