Social Democrats Propose Billion-Kronor Pension Investment

The Social Democrats want to make a billion kronor investment in pensions, which will target those who have been in the workforce for the most years. The proposal will be presented by party leader Magdalena Andersson on May 1st.

» Published: May 01 2025 at 11:02

Social Democrats Propose Billion-Kronor Pension Investment
Photo: Johan Nilsson/TT

A pension boost for those who have worked more than 40 years is one of the ideas that the party now wants to investigate. The party leader cannot answer today how large the boost would be, nor how the initiative would be financed.

The reform proposal goes by the name "Worker's Pension".

The fact is that in our country, those who work the most years also risk getting a low pension, says Andersson at a press conference ahead of the May 1st speech in Malmö.

Reduce working hours

The "Worker's Pension" means that the pension should not only be based on lifetime income, but also on the number of years worked. This also means that one should have the right to reduce working hours towards the end of working life, without it affecting the pension.

Magdalena Andersson calls it "a respect reform".

— When one has worked a certain number of years, sometime after 40 years, we think it's reasonable that one should be able to reduce working hours to cope with the last few years without it affecting the pension. It's a matter of fairness and respect for those who work and toil very many years in working life.

Next term of office

The goal is to get the reform in place during the next term of office. Magdalena Andersson points to two possible ways to finance the initiative:

Either you take it within the pension system or you take it over the state budget.

TT: Is a tax increase needed to implement the proposal?

— We want to increase the pension contribution within the pension system, since it already gives too low pensions today. That's something we've thought since before.

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By TTTranslated and adapted by Sweden Herald
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