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Occupational pension is an increasingly important part of the total pension

Occupational pension is a supplement to the national pension and over time it has become a more important part of for the total pension. In 2021 occupational pension constituted 20 per cent of total pension paid.

In 2021, the Swedish Pension Agency paid out just under SEK 365 billion in national pensions. The national pension includes income-based pension, supplementary pension, premium pension and guarantee pension, and from September 2021, the income pension supplement is also included. As a complement to the national pension, the life insurance and occupational pension companies offer employers and private individuals the opportunity to take out occupational pension insurance and private pension insurance. Life insurance and occupational pension companies also offer private endowment insurance that is not considered
as a pension saving, since there is a possibility to deposit and withdraw all or part of the endowment at any time, which means that the endowment is not locked in until retirement. Endowment insurance has rather the character of a shell for various savings products where the policyholder among other things can choose beneficiary. Payments from occupational pension insurance, private pension insurance and endowment insurance amounted to SEK 236 billion in 2021.

The total payments from national pension, occupational pension and life insurance savings increased by 62 per cent between 2012 and 2021. The share consisting of payments from occupational pension insurance has increased, from 17 to 20 per cent, during the same period. Occupational pension’s share of total pension is however higher than is stated here. This is because an employer can secure its occupational pension commitment in other ways than via occupational pension or a pension insurance, for example through provisions in the balance sheet or to a pension foundation. Details of these provisions are not included
in statistics available at the Swedish Pensions Agency, nor are collected via Insurance Sweden at present.


Pensions make up a substantial part of household financial savings

In the past ten years Swedish households have doubled their financial savings from SEK 6,600 billion in 2012 to SEK 16,400 billion in 2021. Directly owned equities are the most common form of savings for Swedish households, followed by occupational pension schemes. Almost half of the savings in 2021 were in occupational pension, private pension insurance, private endowment insurance or premium pension.