Social Security (Sweden)

Social Security (Sweden)

Sweden's social democratic economic formula, a capitalist system interlarded with substantial welfare elements, was challenged in the early 1990s by high unemployment. However, fiscal discipline over the past several years has allowed the country to weather economic challenges.

Government pension system

Between 1998 and 2001 the pension system was converted from a PAYGO system with government managed funds (AP-funds) to a system which also includes some money that is saved and invested in individual funds. An important factor is that future pensions are now indexed to GDP growth, ensuring sustainability even in the event of unfavourable economic development.

Government pension payments are financed through an 18.5% pension tax on all taxed incomes in the country, which comes partly from a tax category called a public pension fee (7% on gross income), and 30% of a tax category called employer fees on salaries (which is 33% on a netted income). Since January 2001 the 18.5% is divided in two parts, 16% goes to current payments. And 2.5% goes into individual retirement accounts, which was introduced in 2001. Money saved and invested in government funds and IRAs for future pension costs are roughly 5 times annual government pension expenses (725/150).

There are five government funds that manage money for future retirees.

Levels and flows

Levels from 2004 and flows (during 2003 unless otherwise noted)
*Government pension expenses: 155 billion kronor
**Government IRA pension payments: 11 billion kronor
*Taxes reported as going to government pensions costs (14% of this (2.5/18.5) is going to the "PPM" IRAs)
**"Public" pension "fee": 71 billion kronor
**Employer "fees" (30% of them): 105 billion kronor
*Saved and invested money in IRAs and in five government funds: 725 billion kronor
**Five government "buffert" funds assets: 605 billion kronor
***The "first" government pension fund: 148 billion kronor []
***The "second": 149 billion kronor []
***The "third": 152 billion kronor []
***The "fourth": 143 billion kronor []
***The "sixth": 13 billion kronor []
**Government individual retirement account assets: 120 billion kronor [;218,200432,;:]
***The "seventh" government pension fund for IRA money: 39 billion kronor

Additional links

* [ Swedish Social Insurance Agency]
* [;201469,201304,201475,201481;: The Premium Pension Authority]
* [ The Swedish Pension System Annual Report 2005]

ee also

*Economy of Sweden
*Income tax
*Social security
*Social Model
*Unemployment benefits in Sweden

External links

* [ Health care, health, social issues/insurance]
* [ Pensions in Sweden (official site)]

Wikimedia Foundation. 2010.

Look at other dictionaries:

  • Social Security — The term Social Security has several uses.* Social security the general concept of providing welfare * Social Security (play) a play by Andrew Bergman * Social Security (Australia) system of welfare payments in Australia * Social Security… …   Wikipedia

  • social security — 1. (usually caps.) a program of old age, unemployment, health, disability, and survivors insurance maintained by the U.S. federal government through compulsory payments by specific employer and employee groups. 2. the theory or practice of… …   Universalium

  • Social Security (United States) — This article is about the retirement/disability program. For the general concept of providing welfare, see Social security. For other uses, see Social Security (disambiguation) …   Wikipedia

  • Social Security debate (United States) — This article concerns proposals to change the Social Security system in the United States. Social Security is a social insurance program officially called Old Age, Survivors, and Disability Insurance (OASDI), in reference to its three components …   Wikipedia

  • Social Security and Welfare Services — ▪ 1994 Introduction       With a Democratic administration in the White House for the first time in 12 years, the U.S. moved boldly in the area of social welfare in 1993. Elsewhere in the world social security and welfare programs continued to be …   Universalium

  • Ministry of Health and Social Affairs (Sweden) — Ministry of Health and Social Affairs Socialdepartementet overview Formed 1920 (1920)[1] Employees about 200 Ministers responsible …   Wikipedia

  • Maintenance of Social Security Rights Convention, 1982 — ILO Convention C157 Maintenance of Social Security Rights Convention, 1982 Date of adoption June 21, 1982 Date in force September 11, 1986 Classification Social Security Subject Social Security Previous Next …   Wikipedia

  • Social welfare in New Zealand — Social welfare has long been an important part of New Zealand society and a significant political issue. It is concerned with the provision by the state of benefits and services. Together with fiscal welfare and occupational welfare, it goes to… …   Wikipedia

  • Social insurance — is any government sponsored program with the following four characteristics: * the benefits, eligibility requirements and other aspects of the program are defined by statute; * explicit provision is made to account for the income and expenses… …   Wikipedia

  • Social programs in Canada — include all government programs designed to give assistance to citizens outside of what the market provides. The Canadian social safety net covers a broad spectrums of programs, and because Canada is a federation, many are run by the provinces.… …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.