Social Security, Occupational Pensions, and Retirement in Sweden

84 Pages Posted: 10 Jul 2000 Last revised: 10 Apr 2021

See all articles by Marten Palme

Marten Palme

Stockholm University - Department of Economics; IZA Institute of Labor Economics

Ingemar Svensson

National Social Insurance Board

Date Written: August 1997

Abstract

This paper provides an overview of the Swedish social security system and its impact on individual retirement behavior. First, we give some historical facts, as well as a more detailed description of the current situation, of labor market behavior of older persons. Second, we describe the social security system. We also describe the different occupational pension schemes, which have an increasing importance. Finally, we show the results from a simulation, where we have used the earnings path of several representative workers to calculate the implicit tax (or subsidy) rate on additional work after age 55 generated by the social security system in interaction with occupational pensions and income taxes as well as housing allowances. We find that the observed labor market behavior of older men is in accordance with the economic incentives generated by the social security system and in particular with the occupational pension scheme for blue collar workers.

Suggested Citation

Palme, Marten and Svensson, Ingemar, Social Security, Occupational Pensions, and Retirement in Sweden (August 1997). NBER Working Paper No. w6137, Available at SSRN: https://ssrn.com/abstract=225901

Marten Palme (Contact Author)

Stockholm University - Department of Economics ( email )

Universitetsvägen 10 A
House A, floor 4 and 7
Frescati, Stockholm
Sweden
+46163307 (Phone)

IZA Institute of Labor Economics

P.O. Box 7240
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Germany

Ingemar Svensson

National Social Insurance Board

Adolf Fredriks Kyrkogata 8
S-103 51 Stockholm
Sweden
+46 8 786 90 00 (Phone)
+46 8 411 27 89 (Fax)

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