(Oct. 29, 2019) On October 16, 2019, the Swedish Parliament voted to increase the age when a person can retire and start withdrawing money from the public pension system (allmänna pensions systemet) to 62 (early retirement). Previously a person could retire and receive income-based public retirement benefits starting at age 61. (56 kap. 3 § Socialförsäkringsbalken (SFB) (SFS 2010:110).)
The new provision was passed on the heels of Parliament’s vote on June 18, 2019, to raise the mandatory retirement age to 68 years in 2020 and 69 by 2023. Both measures are part of a greater overhaul of the Swedish retirement system that reflects the increased life spans of people in the country.
Under the current rules Swedish workers 67 years old and younger have a right to remain employed (kvarstå i tjänst) and cannot be fired without cause, whereas persons older than 67 do not have priority over other employees on the basis of length of service and can be asked to retire. (32–33 §§ Lag om anställningsskydd (LAS) (SFS 1982:80) (unofficial English translation).) Under the new rules that passed in June, changes will take effect in increments—workers will be protected until age 68, as of January 1, 2020, and age 69, as of January 1, 2023. (Arbetsmarknadsutskottets betänkande 2018/19:AU12, Anställningsskyddet förlängs tills arbetstagaren fyllt 69 år, at 1.)
As a result of the increased working age, beginning in 2023, Swedish residents will not be able to collect “guarantee pension” (garantipension) payments until they turn 68 (2020) or 69 (2023). The current age for collecting such payments is 65. (67 kap. 4 § SFB.)
Commentators expect that the new rules will mostly affect women, who tend to retire at a younger age than their older husbands, and thus allow them to leave the work force at the same time as their husbands.