Our pension consists of:
- Public pension
- Occupational pension
- Private savings for your pension
The public pension is administered by the Pensionsmyndigheten (Swedish pension authority). ITP is the pension scheme for white collar employees in the private sector and is administered by Collectum.
The private savings for your pension is up to you to manage.
Public pension (Pensionsmyndigheten)
Each month 18,5% of your pension based income (salary and other tax based compensations up to 7,5 income base amount) is put aside for the public pension.
- 2,5% goes to premiepensionen which is managed by yourself
- 16% goes to income pension which is managed by the government
Everyone who has worked and lived in Sweden are entitled to public pension. In your orange envelope you can see how much you have earned so far for your public pension.
Read more about public pension
Premiepensionsfonder (the 2,5% you manage yourself)
You can choose between 800 different funds which are procured by Pensionsmyndigheten and can contain max 5 funds at a time.
It’s convenient to update your funds at Pensionsmyndigheten’s website.
Rådgivningstjänsten and Fondvalsguiden can support you when choosing fund selection.
Remember that fees matter!
Read more about premiepension
Occupational pension (Collectum)
Two versions, ITP1 and ITP2
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In your red envelope from Collectum you can see how much you have saved up to your occupational pension so far.
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If you have an income above 10 income base amount (IBB) (581.000 kr for 2015) you can agree with your employer to apply ITP1 instead of ITP2.
With a salary above 7,5 IBB the provisions to ITP are higher due to it reaching the limit for the public pension. This means that no money is set aside to the public pension for the part of the salary above the 7,5 IBB however more is set aside for the occupational pension. The part that exceeds the 7,5 IBB is handled differently for ITP1 and ITP2.
For ITP1 30% of the salary above the 7,5 IBB is set aside for your employment pension.
For ITP2 and 360 months of working time when retiring, the pension is a certain percentage of the salary that you have when retiring. The table below explains it:
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Premiebestämt – choosing insurance company
When choosing insurance company for ITP1 or ITPK you can choose traditional insurance and unit-linked insurance amongst the companies procured for ITP.
- In a traditional insurance a guarantee of finances is included. The company decides the placements.
- When choosing unit link insurances there are no guarantees for the finances. When choosing company at first you’re automatically positioned in the company’s enterence solution, if you want to you can make additional selections about specific funds from the company’s offer.
Advice – premiebestämt
- If you’ve chosen a company which is no longer part ot the ITP procurement you’re at risk of paying higher fees compared to what you did before and compared with the companies included in today’s procurement. The companies included in the ITP procurement have a discounted fee.
- The fees play an important role in determining the size of your pension, you can try it out yourself in this tool.
- It’s easy to choose insurance company yourself for both the public and occupational pension via www.pensionsmyndigheten.se and www.collectum.se.
- www.radgivningstjanst.se is a good tool which provides independent advice. You can get recommendations about where to place your money based on your individual situation and how open you are to risks.
- Get a quick overview of your entire pension
- Cooperation between the government and the pension companies
- Governmental authority which manage the public pension
- Administers the employment pension
- Förvaltare of ITP
- Counselling for those with ITP employment pension based on your own situation
- Individal advice about pensions, survivor's protection and sickness compensation
- This is a good service which provides advice about how to place your money and which insurances that are good to choose. Video from rådgivningstjänst.se