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Pension Funds

Swedish Pension Group proposes raising state retirement age

Sweden's cross-party working group on the country's retirement system wants to raise the state retirement age.

The Pension Group, which consists of representatives of the country's political parties, said it reached the agreement on Thursday. A statement on the government's website said it is important for pensions to change in line with the outside world, and there is a need for development and modernization of the system.

Proposed changes include increasing the retirement age to 62 in 2020 from 61 currently. The retirement age will then increase to 63 in 2023 and to 64 in 2026.

The statement said life expectancy increases by 3.5 hours every day in Sweden, so to maintain retirement benefits the eligibility age needs to be raised to become more sustainable.

The group also said the retirement rules for occupational plans needs to be reviewed, and more modern investment rules are needed for the country's AP funds. The group said the rules need to enable the funds to invest sustainably, with more money invested outside the stock exchange for the highest possible returns and better future benefits.

Spokesmen for the pensions group could not be reached for further comment.