Bild på Mona, pensionshandläggare

Mona, Pension Officer

When it’s time to retire you will probably have a lot of questions. How does the pension system work? What do I need to do? Here is a summary of the most important things you need to know.

How to receive your pension benefits

Your pension benefits will probably be paid from a variety of organisations. When it’s time to retire, most people are entitled to a state pension from the Swedish Pensions Agency, an occupational pension from their employer, and they might also have private pension savings. To obtain information about the full amount of your pension benefits, you can see an overview by visiting minpension.se.

On minpension.se you can:

  • See the total pension you have earned up until today’s date.
  • Undertake a simulation to see approximately how much you are expected to receive in pension benefits each month.

In some cases your retirement pension from Alecta is not shown on minpension.se. This happens, for example, if you are on sick leave and receive disability pension from us, if you have turned 65 or if you have already retired. Minpension.se sometimes displays outdated information if you are going to retire within the next six months or if you have changed your pension benefit payments, e.g. if you have changed the payment period. To see how much you’ll receive, you can log on to My Pages.

The amount of pension benefit you will receive from Alecta depends on aspects such as when you retire and the period over which you wish to receive your pension benefits.

You can easily find out how much you will receive when you retire by consulting My Pages. You can calculate how much you will receive using different payment periods to determine what suits you best.

Repayment cover means that your family will receive the amount left in your ITP 1 Retirement pension or ITPK when you die.

If you have repayment cover there may be reasons to remove this cover as you approach retirement age, for example if your children have reached adulthood. By removing unnecessary repayment cover, you will increase the amount of your own pension.

On My Pages you can see if you currently have repayment cover and you can calculate the amount of your pension benefits if you were to remove that cover.

You can decide yourself when and how you wish to start receiving your pension benefits. If we don’t hear from you, your pension benefits from Alecta will be paid automatically from age 65. If you want to start receiving your pension benefits after age 65, you need to contact us.

Retirement at 65

  • Alecta will contact you three to six months before you turn 65.
  • You can change the payments, and register your bank account and tax details on My Pages up until we begin to pay your pension benefits.
  • If you have not provided this information, you will receive a reminder from us when it’s time for your benefit payments to begin.
  • On the 25th of the month in which you turn 65, you will receive your pension benefits and a letter about your payments from us.

Retirement before 65

You can begin receiving pension benefits from the month in which you turn 55 at the earliest.

  • Log on to My Pages and select the Work out your pension option at some point between one and six months before you want the payments to start.
  • On My Pages, you can select from when you want to start to receive the payments, the length of the period during which your pension benefits should be paid, and also inform us of your bank account details.
  • On the 25th of the month you select to begin receiving payments, you will receive your pension benefits and a letter about your payments from us.

Retirement after 65

It is possible to begin payment of your pension benefits after the age of 65 if you want to.

  • Log on to My Pages and select the Postpone your pension option at some point between one and six months before you turn 65.
  • On My Pages, you can select the month and year from when you want the payments to start.
  • We will contact you three to six months before the payment of your pension benefits is due to begin.
  • You can change the payments, and register your bank account and tax details on My Pages up until we begin to pay your pension benefits.

GOOD TO KNOW

You cannot stop or change the payment of your benefits once they have started.

If you live abroad and would like to begin receiving your pension benefits, please send us your address.

You can do this by writing to:
Alecta
SE-103 73 Stockholm
Sweden

Payment to your bank account

Your pension benefits can be paid into a bank account in Sweden or a bank account in another country.

Payments are made on the 25th of every month, but if you have a foreign bank account it may take a few more days before the funds reach your account.

Your pension benefit will be paid in the currency that is most widely used in the country in which you live. If you would like to receive your pension benefit in SEK, please let us know.

Tax

When you live abroad you may pay what is known as a special income tax for non-residents (SINK) to the Swedish Tax Agency. If the Swedish Tax Agency approves your application, you will receive a SINK assessment to send to Alecta. Once you send us the assessment we will make tax deductions accordingly.

We deduct 30 per cent of your pension or make a deduction in accordance with your current tax table if you do not have a SINK assessment.

This video presents different tips on the various possibilities you have when it’s time to retire. It also includes tips on what you should think about and decide before you retire. The video lasts approximately three minutes and has English subtitles.

See what others do when it’s time to retire
You are the only person who can decide what is best for you when it’s time to retire — if you should start receiving your pension benefit earlier or later than 65, if the payment should last for the rest of your life or for a defined period, etc. However, lots of people are curious about the decisions others make when it’s time to retire.

Take all of your finances into account
When you start thinking about when to retire can be a great time to look over your entire financial situation. What will your income and expenses be? The Swedish Consumer Agency has a budget calculator where you can input the information and amounts for your household to obtain an overview of your financial situation.

Find out how much tax you will pay on your pension benefits
You can get help in calculating your tax from the Swedish Tax Agency’s website.

See what others do when it’s time to retire

You are the only person who can decide what is best for you when it’s time to retire — if you should start receiving your pension benefit earlier or later than 65, if the payment should last for the rest of your life or for a defined period, etc. However, lots of people are curious about the decisions others make when it’s time to retire.

Take all of your finances into account

When you start thinking about when to retire can be a great time to look over your entire financial situation. What will your income and expenses be? The Swedish Consumer Agency has a budget calculator where you can input the information and amounts for your household to obtain an overview of your financial situation.

Find out how much tax you will pay on your pension benefits

You can get help in calculating your tax from the Swedish Tax Agency’s website.