The premium pension is part of the Swedish state pension. A total of 2.5 percent of your salary and other taxable benefits goes into your premium pension account every year.
Premium pension assets are invested in mutual funds. You can select the funds yourself if you wish, choosing up to five funds from the 800 or so registered with the Swedish Pensions Agency.
If you do not make an active choice your premium pension is invested automatically in AP7 Såfa as the default state-managed option. AP7 Såfa takes a "life cycle" investment approach, investing in higher-risk funds when investors are young and shifting to lower risk as they get older in order to maximise investment returns and pension size.
How big will my premium pension be?
The size of your premium pension varies according to how long you work, how much you work, when you decide to start taking out your money and how well your premium pension funds perform.
Everyone born in or after 1938 who has earned premium pension credits will receive a premium pension.
The Swedish Pensions Agency is in charge of the premium pension system.
