By Pensions Myndigheten

The Orange Report 2020 describes the financial position of the national incomebased pension system at the end of 2020, its evolution in 2020, and three scenarios for the future. To put the national income-based system in context, it is related below to, inter alia, information on occupational and private pensions. However, data for these insurance systems are so far only available up to and including 2019, thus the amounts below refer to 2019. Private pension refers only to data on tax-deductible pension savings. Total annual fees and premiums for national pension, occupational pensions, and private pensions are estimated at SEK 549 billion, of which the national pension’s SEK 334 billion represents 61 percent. The wage bill in Sweden amounted to approximately SEK 1,940 billion in 2019 (including earnings of the self-employed). This means that we set aside an amount equal to 28 percent of our salaries for various pensions. Funded capital in the national pension amounted to SEK 3,152 billion on December 31 2019. This corresponds to approximately 46 percent of total funded pension capital in Sweden at one time. The Swedish Pensions Agency paid out SEK 326 billion in inkomstpension and premium pension in 2019. It equates to 67 percent of the total amount paid out that same year. The Orange Report thus accounts for significantly more than half of Sweden’s pension activities involving contributions and disbursements. The fact that it reflects a lower proportion of funded capital is due to the fact that inkomstpension is a distribution system with a buffer fund and not a fully funded pension system. In 2019, in addition to inkomstpension and premium pension, the Swedish Pensions Agency paid out guaranteed pension to the amount of SEK 13 billion. Other pension related benefits paid by the Agency during the year to elderly persons include income-based widow’s pension of SEK 10 billion, housing supplement of SEK 9 billion and maintenance support for the elderly of SEK 1 billion. These benefits are financed from the state budget and are not reported in the Orange Report.

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