Defined benefit retirement pension
If you are born before 1973 you have a part in your occupational pension called defined benefit retirement pension. If you are born between 1973-1987 depending on the size of your salary, you might also have this part of occupational pension.
How to determine defined benefit retirement pension
Usually you earn into the defined benefit retirement pension from the age of 28. Your employer will pay into this part up until the month before you turn 65 years, even if you continue working after 65 years.
If you are born 1943 or up until 1972
The size of your defined benefit retirement pension is calculated on your salary (pensionable salary), how many years you have been employed in the state (pensionable employment time) and the year you were born.
If you are born 1973 or up until 1987
If you have a pensionable salary that is above 7,5 income base amounts you also have this pension for the part of your pensionable salary that is above 7,5 income base amounts. The income base amounts are set annually. For 2024 the income base amount is 76 200 SEK, meaning the 7,5 income base amounts is 571 500 SEK for 2024, corresponding to a monthly salary of 47 625 SEK. If you have a lower pensionable salary you will not earn in to this part. To keep on earning into this part your pensionable salary will need to be higher than 7,5 income base amount. The size of your defined benefit retirement pension is calculated on your salary (pensionable salary) and how many years you have been employed in the state (pensionable employment time).
Simplified the pensionable salary is the average of your pensionable based annual salaries from the five latest years. If you have not been employed for a full five year period the pensionable salary is calculated on the pensionable based salaries you have had so far.
The defined benefit retirement is based on the information we have available. This means that the payment can be increase or decrease depending on new information.
How you can chose to have your money paid out
You have to end your current state employment before you can receive payments from your defined benefit retirement pension. These are the different options for how you can take out this pension:
- If you are born before 1966 you can earliest start to take out the defined benefit pension from the month you turn 61 years
- If you are born 1966 to 1987 you can earliest start to take out the defined benefit pension from the month you turn 63 years
- You can start to take it out how late as you wish.
- If you take it out from 65 years or later it is always paid monthly, the same amount for as long as you live.
- If you take out the defined benefit retirement pension before 65 years you can choose to either paid out with the same amount for as long as you live or a larger amount until you turn 65 years of age.
There is a limitation for the monthly pay out before 65 years, which means that it can be at most about 80 per cent of your current income. If you have a higher salary there is partially different rules. If you choose a higher amount, please be aware that there could be no money left to be paid out after you turn 65 years.
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