Social Security (Sweden)

From Freepedia

Sweden's long-successful economic formula of a capitalist system interlarded with substantial welfare elements was challenged in the 1990s by high unemployment and in 2000-02 by the global economic downturn, but fiscal discipline over the past several years has allowed the country to weather economic vagaries.

Contents 1 Government pension system 1.1 Levels and flows 1.2 External links 2 See also 3 External links

Government pension system

Between 1998 and 2001 the system was converted from a 100% PAYGO system to a system where some money is saved and invested.

Government pension payments are (supposedly) financed through an 18.5% pension tax on all taxed incomes in the country, which comes partly from a tax category called a "public" pension "fee" (7% on gross income), and 30% of a tax category called employer "fees" on salaries (which is 33% on a netted income). Since January 2001 the 18.5% is divided in two parts, 16% (supposedly, there are no external independent audits or reports) goes to current payments. And 2.5% goes in to individual retirement accounts, which was introduced in 2001. Money saved and invested in government funds and IRAs for future pension costs are roughly 5 times annual government pension expenses (725/150).

There are five government funds that manage money for future retirees.

Levels and flows

Levels from 2004 and flows (during 2003 unless otherwise noted)

• Government pension expenses: 155 billion kronor
  • Government IRA pension payments: 11 billion kronor
• Taxes reported as going to government pensions costs (14% of this (2.5/18.5) is going to the "PPM" IRAs)
  • "Public" pension "fee": 71 billion kronor
  • Employer "fees" (30% of them): 105 billion kronor
• Saved and invested money in IRAs and in five government funds: 725 billion kronor
  • Five government "buffert" funds assets: 605 billion kronor
    • The "first" government pension fund: 148 billion kronor [1]
    • The "second": 149 billion kronor [2]
    • The "third": 152 billion kronor [3]
    • The "fourth": 143 billion kronor [4]
    • The "sixth": 13 billion kronor [5]
  • Government individual retirement account assets: 120 billion kronor [6]
    • The "seventh" government pension fund for IRA money: 39 billion kronor

External links

• Federal government annual report 2003 (not in english, in native language)
• Government income statement 2003 (in native language)
• PPM - For Fund Managers - Introduction

See also

• Economy of Sweden
• Income tax
• Social security

External links

• Health care, health, social issues/insurance