From the age of 28, your employer begins paying in contributions to your retirement pension.
These contributions continue for as long as you are employed by your employer, or to the age of 65. If you continue to work after this point in time, you can come to an agreement with your employer stipulating that they continue to pay into your ITP 1 Retirement Pension after you have turned 65.
The amount you receive once you retire depends on factors, such as:
|Your annual income||Retirement pension|
|Salary up to SEK 483,000||10 %|
|Portion of salary between SEK 483,000 - 1,288,000||65 %|
|Portion of salary between SEK 1,288,000 - 1,932,000||32,5 %|
To receive ITP 2 Retirement pension as specified in the table, you must:
If you are expected to work for less time, the amount decreases.
Anders’s annual income is SEK 385,600 and he has worked for over 30 years. He will, therefore, receive 10% of his salary in ITP 2 Retirement pension benefits:
10 per cent x SEK 385,600 / 12 months = Anders receives SEK 3,213 per month in ITP 2 Retirement pension benefits, before tax, for the rest of his life.
Pia’s annual income is SEK 632,100 and she has worked for over 30 years. She will, therefore, receive 10% of her salary up to SEK 468,750, and 65% on the salary portions over this amount.
10 per cent x SEK 468,750 / 12 months = SEK 3,906/month
65 per cent x (SEK 632,100 - SEK 468,750) / 12 months = SEK 8,848/month
Pia receives SEK 12,754 per month (SEK 3906 + SEK 8,848) in ITP 2 Retirement pension benefits, before tax, for the rest of her life.
ITPK is an extra retirement pension. Your employer contributes 2% of your salary to ITPK every month. If you choose Alecta for your ITPK, we invest your pension in Alecta Optimal Pension.
The size of your ITPK depends on:
Choosing Alecta for your ITPK will make your saving affordable, secure and simple. The occupational pension is a complete package and you do not actually need to do anything at all unless you want to. Your pension is automatically placed in Alecta Optimal Pension, but you can choose another savings portfolio if you wish.
In 1990, it became possible for you to select where to invest your ITPK yourself. If you did not select anything, your premiums were invested in what is known as an original ITPK up until 2007. Today’s ITPK products are expected to give a better return on capital and it is, therefore, possible to transfer your entire original ITPK pension capital, for example, to Alecta Optimal Pension.
The retirement age for ITP 2 Retirement pensions and ITPK is 65 years, but you can start to take out your pension sooner or later if you wish. Generally, the pension is paid out for the rest of your life. You know how much you will receive for the rest of your life. You may also choose to take out your retirement pension over a specific number of years instead.