AP7 Såfa Outperforms in Premium Pension Returns

The Premium Pension fulfills the set targets for returns. It goes best for those who have not made their own fund choices, the so-called couch potatoes, in the state-managed AP7 Såfa.

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AP7 Såfa Outperforms in Premium Pension Returns
Photo: Christine Olsson/TT

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The premium pension continues to yield significantly higher than the income pension's development, writes the Pensions Authority in a press release.

Those who have the state-funded option AP7 Såfa have had a better average development than those who have made their own fund choices. And among those who have made their own choices, a clear pattern emerges: the more choices, the worse the development.

"Only every fourth person who has made their own fund choice has received a higher development than the average saver in the option AP7 Såfa. One should keep in mind that there is a very large spread in development among pension savers with both higher and lower returns than the average," says Gustav Sundén, analyst at the Pensions Authority, according to the press release.

At the same time, the Pensions Authority assesses that the Riksdag's goal for the return in the premium pension system, that the return should be significantly higher than the income development, is fulfilled.

The stock markets have fallen sharply after the expanded trade war, which can have major effects on the premium pension system.

"We have not analyzed that at present, but we will look at it in next year's report," says Gustav Sundén.

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By TTEnglish edition by Sweden Herald, adapted for local and international readers

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