Most Swedes have a great need to save for their retirement privately. Despite pension from the government (national pension) and employers (occupational pension), many people can only expect a pension of 50–60 % of their final salary. A benchmark for your pension would be to aim for 80 % of your salary before retirement. After 10 years as retired, it is common to go down to 70 % of your final salary[1]. In order to maintain a standard of living close to what you had before your retirement, private retirement savings are required as a supplement. We recommend that you use Advinans’ Pension Simulator to get a correct picture of your personal pension target. Please note that if you are young it is important to remember that your salary at the time of your retirement will most likely be higher than your current salary, partly because you will be more experienced but also because we have a general increase in prosperity in Sweden.

[1] Estimates from the US Consumption Activities Mail Survey (CAMS) and Bureau of Labor. Statistics from the Consumer Expenditure Survey (CEX). Notes from the Employee Benefit Research Institute, September 2014, Vol. 35, No 9.