Retirement pension
The component of your occupational pension with Alecta that is paid when you retire, is called retirement pension. A description of this pension is provided below.
A new agreement comes into force on 1 July 2007 and primarily applies if you were born in 1979 or later. It means, among other things, that you will start earning towards your occupational pension from the age of 25 and that you can decide who should manage your money.
The description on this page applies to you if you were born before 1979 and are included in the defined benefit plan. Your employer starts paying for your retirement pension when you reach the age of 28. It is set as part of your salary. The higher your salary is, the higher your retirement pension will be.
The different pension levels are shown here:
|
Salary in SEK |
Retirement pension i % |
|
|
0 -
381,750 |
10 % |
|
|
381,750 -
1,018,000 |
65 % |
|
|
1,018,000 -
1,527,000 |
32,5 % |
|
How long you work is significant
In order to receive a maximum retirement pension, you need to have worked for at least 30 years after the age of 28. If you were employed at a workplace that had an occupational pension other than ITP, this period may also be included in the 30 years. It is important that you tell us about any previous jobs you had so that we can include the period you previously earned an occupational pension. If you work for less than 30 years, your pension will be smaller. It is calculated like this: for each month you fall short of 30 years, which is 360 months, 1/360 will be deducted from the pension.
Retire at 65 or earlier?
Payment of your retirement pension starts when you reach the age of 65. But you can take out your pension earlier, although not before the age of 55. If you stop working at 55 and decide to take out your retirement pension then, it will not be as high as if you had worked until normal retirement age. This is because it will be paid out for a longer period and a large portion of the pension premiums will not be paid. It is better to wait and stop working in the month after your 62nd birthday. If you do that, the premiums for the period until your 65th birthday will be paid as if you had continued working with the same salary. The monthly pension, however, will not be as high as it would have been if you had waited before withdrawing your pension, since the money must last for the rest of your life, and be distributed over a longer period.
Different payment period
Starting in July 2007, it will be possible to choose a different payment period. Then you will be able to decide whether you want to have your retirement pension for the rest of your life or over a shorter period. The shortest period you can choose is five years.