What is the difference between inkomstpension and premiepension?

Inkomstpension is a notional defined-contribution scheme: your 16% credits earn a return linked to average wage growth and are converted to an annuity at retirement using a life-expectancy divisor. Premiepension is genuinely invested in funds you choose, so its outcome depends on market returns.

What is the pensionable income ceiling?

Public pension contributions only build on income up to 7.5 income base amounts (inkomstbasbelopp) per year — roughly 600,000 kr. Income above that ceiling earns no public pension, which is why higher earners rely heavily on occupational pension (tjänstepension) for the part above the cap.

Should I include occupational and private pension?

Yes, if you want a complete picture. Most Swedish employees have an occupational pension (tjänstepension) on top of the public one, and some add private savings such as IPS or an investment savings account (ISK). This tool lets you add a combined contribution rate so the projection reflects your full retirement saving.

How accurate is this projection?

It is an illustrative model. The income pension's return tracks wage growth, the premium pension depends on uncertain market returns, and the final annuity uses a life-expectancy divisor that changes over time. Treat the figures as a planning guide and check your official forecast on minPension.

Sweden Pension & Retirement Calculator

Q: How is the Swedish public pension funded?

Each year 18.5% of your pensionable income goes to the public pension (allmän pension): 16% to the pay-as-you-go income pension (inkomstpension) and 2.5% to the funded premium pension (premiepension/PPM) that you can invest in funds. Pensionable income is capped at 7.5 income base amounts per year.

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The Sweden Pension & Retirement Calculator projects your retirement income from Sweden’s public pension system. Each year, 18.5% of your capped pensionable income is set aside: 16% to the income pension (inkomstpension) and 2.5% to the funded premium pension (premiepension). This tool builds both pots over your working years and shows the annual pension they could produce, with room to add occupational and private savings.

How it works

Contributions accrue each year on pensionable income up to the 7.5 income base amount ceiling, then convert to an annuity at retirement.

pensionable = min(salary, 7.5 × income_base_amount)
income_pot += 16%  × pensionable, grown at wage_growth
premium_pot += 2.5% × pensionable, grown at fund_return
annual_pension = (income_pot + premium_pot) / divisor

The divisor reflects expected years in retirement (life-expectancy at the retirement age), turning the accumulated pots into a yearly payment. Income pension grows at a wage-linked rate; premium pension grows at the market return you choose. Optional occupational/private contributions are added on the same basis.

Example

A worker earning 500,000 kr (below the cap) contributing for 35 years, with 5% real fund return on the premium pension and a retirement divisor of about 18, can see roughly how much annual public pension their 16% + 2.5% credits will produce.

Notes

Income above the 7.5 income-base ceiling earns no public pension, so higher earners depend on tjänstepension for that portion. The final figure is illustrative — the official forecast on minPension uses live divisors. All maths runs in your browser; nothing is uploaded.