Pensioners earn thousands on extra work

More than a quarter of a million Swedes continue to work – despite being pensioners. Apart from getting more money, the pensioner workers also seem to see other values in staying in working life. You can't just sit on your backside, says 76-year-old Jakob Goldberg who is working full-time this summer.

» Updated: July 16 2024

» Published: July 09 2024

Pensioners earn thousands on extra work
Photo: Jonas Ekströmer/TT

More than a quarter of a million Swedes continue to work – despite being pensioners. In addition to getting more money, the pensioners also see other values in staying in working life.

You can't just sit around, says 76-year-old Jakob Goldberg, who is working full-time this summer.

The future workforce meets yesterday's, in a playground in Hässelby in western Stockholm. Jakob Goldberg was previously an IT manager. Now he is summer-working via the company Veteranpoolen, and is leading a group of teenagers who take care of green areas and asphalt.

It's about staying active. It's nice, it's fun – especially in the summer. The last two years I've had fantastic weather. Then I got really tanned, he says.

Goldberg started working almost immediately after retirement with small part-time jobs. The only longer break was when the pandemic struck.

It was a nightmare to just sit at home. So this is worth a lot. And working with young people – then you become young again.

There are 261,000 pensioners in the country, i.e., people who continue to work while receiving their pension. The phenomenon has become increasingly common.

In the past, pensioners became old early. But that's not the case anymore. I don't feel like I'm 76. I feel like I'm 55, says Goldberg.

Most pensioners are 65-66 years old. Every fifth continues to work five years after retirement.

About 2,300 pensioners are 85 years or older, says Monica Zettervall, pension expert at the Pensions Authority.

There are many thousands of kronor to be saved, both in salary and in higher pension.

If the alternative is to retire completely, it's always more beneficial to continue working to some extent, since you then continue to earn money for your pension and also receive a work income, says Zettervall.

Goldberg, however, downplays the economic aspect for himself. And Isabelle Hansson, a doctor of psychology at the University of Gothenburg, says that only every fifth pensioner works for economic reasons.

What we've seen in our studies is that personal drivers, such as the work feeling meaningful, are important, she says.

Other reasons are feeling needed and social contact with others. Work is a large and important part of our lives, and continuing to work means that you maintain structures and social relationships, according to her.

For most people, I would say that it's beneficial to continue working. And the fact that most people work part-time also enables a more gradual adaptation to life as a pensioner, she says.

+ Higher job tax deductions and basic deductions from the year you turn 67 mean that tax on salary and pension becomes lower.

+ From the 67th year of life, the employer's contribution decreases from 31.4 to 10.21 percent.

+ You can take out 25, 50, 75, or 100 percent of your income and premium pension, regardless of what you earn. The withdrawals can also be paused and changed. For occupational pensions, different rules apply, check them out beforehand.

+ Be careful that pension and salary together do not exceed the threshold for state tax of 51,275 kronor (for people from 67 years, the limit is 58,100 kronor), then you may have to pay unnecessarily high taxes.

+ A person with 34,000 kronor in salary who works half-time from 63 to 66 years of age and simultaneously takes out half of their public pension earns around 2,000 kronor more per month in pension, compared to retiring completely at 63 years of age. Until the age of 86, that means a total of half a million kronor more after tax.

Tags

TTT
By TTThis article has been altered and translated by Sweden Herald

More news

Northvolt to Lay Off Half
1 MIN READ

Northvolt to Lay Off Half of Skellefteå Workforce

Court Upholds Verdict Against Pension
1 MIN READ

Court Upholds Verdict Against Pension Saver in Falcon Funds Case

Huawei Reports First Quarterly Loss
1 MIN READ

Huawei Reports First Quarterly Loss in Years Following Sanctions

France Fines Apple 150 Million
1 MIN READ

France Fines Apple 150 Million Euros for Competition Violations

Maurel & Prom Shares Drop
1 MIN READ

Maurel & Prom Shares Drop 15 Percent After Venezuela License Revoked

Norwegian Oil Fund Invests 1.4
1 MIN READ

Norwegian Oil Fund Invests 1.4 Billion Euro in Offshore Wind Projects

Sweden's Wage Talks Reach Critical
1 MIN READ

Sweden's Wage Talks Reach Critical Stage as Deadline Looms

Sweden Tops Nordic Region in
1 MIN READ

Sweden Tops Nordic Region in Money Laundering, Report Finds

Swiss Varo Energy to Acquire
1 MIN READ

Swiss Varo Energy to Acquire Swedish Fuel Company Preem

German Retail Sees Surprise 0.8
1 MIN READ

German Retail Sees Surprise 0.8 Percent Growth in February

Half of Retrained Workers Shift
1 MIN READ

Half of Retrained Workers Shift to New Industries, CSN Reports

EQT-Backed Omega II Bids 54.9
1 MIN READ

EQT-Backed Omega II Bids 54.9 Billion Kronor for Fortnox

Food Prices Continue to Climb,
3 MIN READ

Food Prices Continue to Climb, but Major Increases May Be Over

US Tariff Concerns Trigger Broad
2 MIN READ

US Tariff Concerns Trigger Broad Decline in Stockholm Stocks

Tokyo Stocks Drop Sharply as
1 MIN READ

Tokyo Stocks Drop Sharply as Trump Tariffs Loom

Trump and Starmer Discuss Progress
1 MIN READ

Trump and Starmer Discuss Progress on US-UK Trade Deal

Håkan Samuelsson Returns as Volvo
2 MIN READ

Håkan Samuelsson Returns as Volvo Cars CEO to Drive Electric Future

Security Fund Reports Fewer Layoffs,
2 MIN READ

Security Fund Reports Fewer Layoffs, Sees Hope for Skilled Workers

South Korea, China, Japan Collaborate
1 MIN READ

South Korea, China, Japan Collaborate to Boost Free Trade

Trump's Diversity Order Faces Pushback
1 MIN READ

Trump's Diversity Order Faces Pushback from European Companies

Sweden Seeks to Shield Key
2 MIN READ

Sweden Seeks to Shield Key Goods from EU-US Tariff Clash

Weekend Push for New Industrial
2 MIN READ

Weekend Push for New Industrial Agreement as Deadline Looms

Swedes Opt for Europe as
3 MIN READ

Swedes Opt for Europe as US Travel Bookings Drop 30 Percent

Energy Efficiency Boosts Villa Prices
1 MIN READ

Energy Efficiency Boosts Villa Prices in Sweden's Real Estate Market

Elon Musk's XAI Acquires Platform
1 MIN READ

Elon Musk's XAI Acquires Platform X in Major Tech Move

Inflation Concerns Drag Down Wall
1 MIN READ

Inflation Concerns Drag Down Wall Street Indices

Sweden Seeks New Investors for
1 MIN READ

Sweden Seeks New Investors for Bankrupt Northvolt Battery Firm

US Inflation Surprises with Higher
1 MIN READ

US Inflation Surprises with Higher Than Expected February Rate

Li Ka-Shing Halts Sale of
1 MIN READ

Li Ka-Shing Halts Sale of Panama Canal Ports Amid Beijing Pressure

Princess Madeleine Addresses Criticism Over
2 MIN READ

Princess Madeleine Addresses Criticism Over New Skincare Venture

Stockholm Stocks Slide 4.5 Percent
1 MIN READ

Stockholm Stocks Slide 4.5 Percent in a Week as US Inflation Hits

French Inflation Dips Below Expectations,
1 MIN READ

French Inflation Dips Below Expectations, Impacting ECB Decisions

Cautious Consumer Spending Sees Slight
1 MIN READ

Cautious Consumer Spending Sees Slight Uptick in Sweden's Retail Sales

SSAB Faces Financial Supervisory Authority
1 MIN READ

SSAB Faces Financial Supervisory Authority Probe Over Reporting Rules

79,000 Swedes Face Student Debt
1 MIN READ

79,000 Swedes Face Student Debt with Enforcement Authority in 2024

Royal Expert Questions Princess Madeleine's
3 MIN READ

Royal Expert Questions Princess Madeleine's Skincare Venture

Gold Prices Reach New Heights
1 MIN READ

Gold Prices Reach New Heights as Trade Tariff Concerns Grow

Asian Markets Tumble as Investors
1 MIN READ

Asian Markets Tumble as Investors Brace for New US Tariffs

Trump's Tariff Plan Could Drive
2 MIN READ

Trump's Tariff Plan Could Drive Up Car Costs, Impact US Market

Ubisoft and Tencent Invest $1.25
1 MIN READ

Ubisoft and Tencent Invest $1.25 Billion in New Gaming Subsidiary