A guide to the Swedish pension system
Do you want to get a better idea of the Swedish pension system? Go through our guide and learn more about how the pension system works and what you need to do!
Have you received a letter from us?
If you get a new job that includes an ITP, or if your ITP insurance changes, you will receive an insurance statement from us. Do you need help to understand what it says? We can help you.
Do you offer ITP to your employees?
The ITP occupational pension is a part of the collective agreement and complements the Swedish national public pension. Your employees will have either an ITP 1 or an ITP 2.
It depends on your salary, how long you have had an ITP and how the investment of your premiums has performed.
- If you have an ITP 1, you have a defined contribution retirement pension. That means that the amount paid into your pension is determined in advance, but it’s not possible to say in advance what amount your pension will be.
- If you have an ITP 2, you have a defined benefit retirement pension. That means that the amount of your pension is determined in advance and linked to your salary. However, the amount paid in is not determined in advance but is calculated for each individual by Alecta. ITP 2 also contains the supplementary retirement pension ITPK, which is a defined contribution retirement pension.
You can choose who manages your pension fund and how your ITP 1 or your ITPK (if you have ITP 2) funds are invested. However, you are not obliged to make a choice. If you don’t make a choice, your money is invested with Alecta, the default choice.
You need to think about whether you would like to select survivor´s cover for your family. This would entitle them to compensation if you were to die.
The premiums you pay vary depending on whether your employees have an ITP 1 or an ITP 2 + ITPK.
- The ITP 1 is a defined contribution pension.
- The ITP 2 is a defined benefit pension, while the ITPK is a defined contribution pension.
All salaried employees over 18 who have ITP cover and work at least eight hours per week also have occupational group life insurance, TGL.
With the TGL a tax-free lump-sum is paid out to survivors if the employee dies before retirement.
On the Collectum website, you can:
- Choose who manages your occupational pension
- Choose cover for your family
- Transfer capital you’ve already earned to another pension fund manager
- Adapt your occupational pension to your personal situation
- Learn more about your ITP occupational pension