This summer, the parties, in the pension group, agreed that part of the surplus in the system should be distributed if it exceeds a certain level. This will be a so-called gas in the system – previously there had only been a brake.
The brakes have been applied a few times when the Swedish economy was weaker and debts exceeded assets. The gas will, from 2027, ensure that part of the surplus that arises during good years is distributed to retirees and also that it strengthens the envelopes of future retirees.
Disadvantaged
Now that trade unions, businesses, authorities and pensioners' associations have submitted comments on the proposal, some of them – the Swedish Gender Equality Authority and the Faculty of Law at Stockholm University – point out that women will be further disadvantaged.
Women already have a lower state pension than men, on average, around SEK 2,700 less per month. For the 1.2 million who receive income pension strengthened with a guarantee pension, 70 percent of whom are women, the distribution of surplus will reduce the guarantee pension. The surplus will be distributed as a percentage in relation to the pension that a person has.
The gap is widening
In the short term, the gap will not increase much, but over many years it can grow significantly.
"The reform is expected to contribute to increasing the pension gap between women and men, albeit marginally. The Gender Equality Authority therefore believes that it should be accompanied by measures to reduce the pension gap," writes the Gender Equality Authority.
LO chairman Johan Lindholm says that the difference is a result of the system being based on earned salary.
“I know what life is like for nurses and sales employees who struggle and are only offered part-time jobs. More full-time jobs are needed,” he says.
Too low
However, LO believes that the big problem is that the pensions provided by the system are too low, across the board, for both women and men.
Johan Lindholm says that pensions are an issue that often comes up when he meets members around the country.
– The concern is palpable about becoming a poor pensioner, says Lindholm and adds:
– The system does not deliver the basics – enough money to live on.
