Your total pension consists of three elements. The state pension, your occupational pension and any private pension savings.
The size of the different elements of your pension varies from person to person. The various elements do not affect one another, but are added together to form your total pension. How much pension you will receive depends on, for example, how old you were when you started working, how many years you have worked, your salary, how you choose to invest some of your pension funds, and how you have chosen to invest your private pension savings.
This image shows a pyramid in three parts in which your state pensions forms the basis followed by occupational pension and, at the top, your private pension.
The state pension
The state pension is provided by the government. Everyone who has lived and worked in Sweden is entitled to a state pension. It is based on all the income on which you have paid taxes, including, for example, unemployment benefit, sickness and activity compensation and parental benefit. Each year that you work and pay taxes increases the amount of money in your future pension. The orange envelope you receive each year indicates how much you have already saved in your state pension.
If you want to know more about the state pension, contact The Swedish Pensions Agency.
Most employees in Sweden have an occupational pension through their employer. That means that your employer pay a certain amount of money each month to your occupational pension. If you have worked in different lines of work you can be covered by several different occupational pensions. As an employee at Umeå University you are covered by an occupational pension called PA 16. This pension covers all government employees.
If you want to know more about your occupational pension, please contact the National Government Employee Pensions Board (SPV).
The private pension is a part of the overall pension that you can control. You decide if and how much of your salary you want to save. There are many different alternatives for saving and if you have a private pension it is your private pension provider that can help you with any questions, for instance a bank or an insurance company.
More questions? Read more under the following links.