SwedenLivingWorld world_2_fill WorldBusiness BusinessSports sports-soccer SportsEntertainmentEntertain

So much more in your wallet in 2025

After a few tough years, 2025 is expected to be a year that gives households' economy a long-awaited boost. For a family with children, it can mean thousands of kronor more per month. There are, however, both winners and losers.

» Published: January 01 2025

So much more in your wallet in 2025
Photo: Anders Humlebo/TT

Several financial policy measures, combined with low inflation and lower interest rates, give households a slightly more stable foundation to stand on now that 2024 has become 2025.

Many indications suggest that we will have a better economic situation, says Stefan Westerberg at Länsförsäkringar.

In the autumn budget, the government presented several initiatives for households, including reduced tax on wages and savings. Moreover, larger salary increases are expected in 2025 compared to 2024.

If you look at a typical family with two adults and two children, our calculations show an increase of 4,600 kronor per month, says Stefan Westerberg, private economist at Länsförsäkringar.

A clear winner

The tax cuts particularly benefit high-income earners, something the finance minister has previously stated is motivated to boost Swedish growth.

For a high-income earner in Stockholm who earns around 53,000 kronor per month, the tax cut means approximately 1,400 kronor more per month, according to Länsförsäkringar's calculations. For a single household with a monthly salary of around 34,000 kronor, it means around 375 kronor more in their pocket.

Those who earn more money will be able to take advantage of lower taxes, not just through the job tax deduction but also because the threshold for paying state income tax is increased.

However, it is monetary policy rather than fiscal policy that will provide the extra boost to households' finances in 2025.

Primarily, it is a result of lower costs, driven mainly by lower mortgage interest rates, says Westerberg.

Not beneficial for everyone

If high-income earners are the clear winners, there are households that will not benefit much from the changes, not least low-income earners and those who, for example, rent their homes.

Most people own their homes. But we have a certain part of the population that rents and there, housing costs are likely to increase as fees go up as it looks now.

For those who will have more money left over, Stefan Westerberg has a clear piece of advice: review your savings.

Insofar as you get better off, it's good if you first review your buffer and short-term savings so that you build up your economic safety nets.

For an average family with two children and two adults, the wallet is expected to be filled with around 4,600 kronor more per month in 2025. A number of things will put more money in their pockets:

* Tax cuts. The government's tax cuts are expected to give around 750 kronor more in the wallet for two working individuals with a monthly salary of around 43,000 kronor each.

* Lower household costs. Mainly, it is the lower cost of mortgage interest rates that will be noticeable in the wallet. For the average family, this means around 2,100 kronor more per month.

* Salary increases. For two parents with small children, it means around 1,750 kronor more per month. The assumption is based on real wages increasing by around 3 percent in 2025. The Swedish Central Bank expects real wage increases of around 3.5 percent per year in the coming years.

Source: Länsförsäkringar

Tags

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

More news

Norwegian Customs Nightmare: "A Triple Whammy"
1 MIN READ

Norwegian Customs Nightmare: "A Triple Whammy"

Expensive graduation party - "can be anxiety-filled"
3 MIN READ

Expensive graduation party - "can be anxiety-filled"

Javier Milei criticized after cryptocurrency crash
1 MIN READ

Javier Milei criticized after cryptocurrency crash

Multi-billion loss for Trump's media company
1 MIN READ

Multi-billion loss for Trump's media company

Stalemate in the trade war between the USA and the EU
3 MIN READ

Stalemate in the trade war between the USA and the EU

Northvolt's delayed status report is ready
1 MIN READ

Northvolt's delayed status report is ready

Scholz wants to open up for a larger defense budget
1 MIN READ

Scholz wants to open up for a larger defense budget

Hundreds of reports against cancellation service
2 MIN READ

Hundreds of reports against cancellation service

This is how you can increase your pension by several thousand kronor
3 MIN READ

This is how you can increase your pension by several thousand kronor

Bezos' space company lays off every tenth employee
1 MIN READ

Bezos' space company lays off every tenth employee

Wall Street brakes - tariffs and inflation melt away
2 MIN READ

Wall Street brakes - tariffs and inflation melt away

American Retail Sales Fall Unexpectedly
1 MIN READ

American Retail Sales Fall Unexpectedly

Worst grape harvest in a long time
1 MIN READ

Worst grape harvest in a long time

Russia signals for even higher interest rate
1 MIN READ

Russia signals for even higher interest rate

The Crown Strengthens Against the Dollar – Only Temporarily
2 MIN READ

The Crown Strengthens Against the Dollar – Only Temporarily

The Forestry Industries: Thousands of Jobs at Risk
2 MIN READ

The Forestry Industries: Thousands of Jobs at Risk

Faster Payments to Give Higher Pensions
1 MIN READ

Faster Payments to Give Higher Pensions

Vattenfall: No Nuclear Power Decision Before 2029
2 MIN READ

Vattenfall: No Nuclear Power Decision Before 2029

Luxury Company's Bonus to Employees – 50,000 Kronor
1 MIN READ

Luxury Company's Bonus to Employees – 50,000 Kronor

Most Expensive Electricity Week in a Long Time
2 MIN READ

Most Expensive Electricity Week in a Long Time