The Pension System in Sweden


July 2013

The Pension System in Sweden

This report evaluates the design of the pension system in Sweden. The primary objective of a pension system is to provide income security in old age. That objective has at least four elements: consumption smoothing, insurance, poverty relief and redistribution. The reforms of the 1990s contributed to the achievement of those objectives, commanded consensus and survived the stress test of the economic crisis. Thus discussion of improvements can be reflective rather than crisis management.

In the light of that broad conclusion, much of this report sets out areas for discussion and possible directions of change rather than specific recommendations.