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Sweden: Steeply Rising Older Workers’ Employment Rates in a Late-Exit Country

Abstract

Sweden has very high employment rates for all age groups and both men and women. Effective retirement age is even rising after pension reforms with a flexibilization of the statutory retirement age. Incentives are given for later withdrawal and longer working careers, since pensions are based on all earnings during working life. Disability pensions are the most important pathway for early exits out of the labor market for all age groups, even though the rules for eligibility had been restricted in the reforms. Occupational pensions as “early” exit gain importance for over 60-year-olds, with more highly educated workers being more likely to take advantage of occupational pensions as an early exit route. This highlights the importance of education for retirement timing.

Keywords

  • Labor Market
  • Employment Rate
  • Disability Pension
  • Pension System
  • Unemployment Insurance

These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Fig. 14.1

Notes

  1. 1.

    Before 1974, the age limit was 63 years.

  2. 2.

    The pension is adjusted according to actuarial calculations, and there is no bonus for workers who extend their working life.

  3. 3.

    However, if occupational pensions are withdrawn before age 65, there is a lifelong actuarial adjustment to account for the longer payout period.

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König, S., Lindquist, G.S. (2016). Sweden: Steeply Rising Older Workers’ Employment Rates in a Late-Exit Country. In: Hofäcker, D., Hess, M., König, S. (eds) Delaying Retirement. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-137-56697-3_14

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  • DOI: https://doi.org/10.1057/978-1-137-56697-3_14

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