PRO highlights shortcomings of Swedish pension system

AGE Swedish member organisation PRO has been interviewed by the French newspaper Le Monde on the current pension Swedish pension system, which is now taken as a model by the French government to guide future pension reforms in France. Swedish pensions are based on a universal regime relying on individual notional accounts and indexed according to life expectancy.

In the interview PRO explains the shortcomings of this “model” system, which, 25 after its adoption, turns out to detrimental to a significant part of the Swedish population, in particular to those who are ‘at risk’ (16,8 % of the 65+ and 24,35 of the 75+).

The objective of the system was initially to encourage people to work longer but the idea seems to have failed for “working longer is not an option for everyone”. As PRO points out: “Life expectancy is not the same for all” and this system also increases the gender pension gap.

PRO hopes that the upcoming elections in Sweden in September will improve the situation and lead to increased pension funding. “65-plussers are making up one quarter of voters in Sweden. They can no longer be ignored”, argues PRO President, Christina Tallberg.

Read the full interview here (in French)