Retirees are getting richer -
Photo: Fredrik Sandberg/TT

Retirees are getting richer - working all the way

The purchasing power of pensioners is increasing again and almost half a million Swedes are now working pensioners, according to a survey by the occupational pension company Alecta. Compared with ten years ago, a newly retired person typically has 8,000 kronor more per month to live on, says the company's pension economist, Staffan Ström.

The survey is based on the income year 2024. At that time, 67-year-olds, born in 1957, typically had just under SEK 4,000 more in monthly income than newly retired people the year before.

We are converting everything to 2024 monetary values so that it is comparable, says Ström.

The year before, in 2023, however, the purchasing power of the then 67-year-olds decreased.

It was inflation that meant those born in 1956 had a little less to live on. But now that inflation has fallen again, it's a pretty big increase.

The tax had an effect

There are several explanations for why incomes have started to increase again.

Those who retire now have worked until retirement age to a much greater extent - that is the strongest explanation. In the past, it was much more common to be on long-term sick leave or to be unemployed for a long time.

Tax compensation also comes into play, since people born in 1957 did not receive the increased basic deduction in 2023, says Ström.

A tax adjustment was made specifically for the 1957 cohort. They paid too much tax in 2023 and got it back in 2024. But even if you exclude that, they would still have ended up well above people born in 1956.

More working retirees

At the same time incomes rose in 2024, the number of so-called 'jobboners' - which Alecta defines as people over 66 who continue to work - also increased by 20,000, to a total of 465,000.

Most commonly, people work one or a few days a week.

Alecta has previously conducted interviews with a few hundred 'jobboners'.

Most people say they find it fun to continue working. They work because they want to - not because they need to, says Ström.

In this story
AuthorTT News AgencyEnglish edition by Sweden Herald, adapted for our readers
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