Two thousand SEK a month.
That´s how much many swedes pay into their pension. Every month.
In one year, that´s equal to a couples trip to Thailand.
And in ten years, the whole family can come along to Phuket.
It´s money that you rarely see, you might even forget about them because it´s your employer who pays them.
But they are not lost.
They are just there, waiting patiently for the future.
Or waiting. Of course, they work for you.
If things go well it allows your 24,000 SEK a year to grow substantially in value.
Many contributions over a long time and a return on them. Then a yield even on that return.
Yes, this is what is called compound interest.
It´s all of these components taken together that build up your equity. In 30-40 years there may be millions in equity.
But what is it that determines how much you actually get?
The basis is to start work early and to have a good job. Higher salaries provide higher pension.
Then, it´s our job to manage your money and to provide you with a return.
This we do by investing them wisely and in the long-term.
We have done this for almost a hundred years and with this experience
we have produced a savings which should suit most people.
A savings designed for you to feel secure.
Certainly in the short term it can go both up and down.
But it´s the long-term results that are the most important.
What is the economic development like in 30 or 40 years? Let time work for you.
However, there is one thing with your pension that you can be absolutely sure about.
The fees. You will always know what they are.
The difference between the fees in the various pension companies might not seem that great today.
But what if the fees you pay, instead could get remunerated for another 40 years.
A percent difference in contributions today may be around 20 percent difference in equity when it´s time to retire.
In addition, there is nothing that says that a higher fee gives higher yields.
On the contrary, you can be sure that a large portion of your savings will be consumed by the fees. Unnecessary in our opinion.
Basically, it´s pretty easy to get a good pension.
Think long term. Every little bit helps.
And don´t let yourself be tempted by the intriguing statistics and percentages.
Just make sure that as little as possible disappears in fees and you are on your way to a good pension.
All it takes is patience. Stay calm.
But take the opportunity to enjoy that your occupational pension is actually working for you.
Good luck!