The automatic balancing of the pension system – pension brake – will prevent it paid out more in pension than the system can handle. Deficit leads to lower pensions and effect have become an unwanted hiccups in payments; pensions have been raised a year, to be lowered again the next.
With balancing would be changed has been clear for a long time. The discussion has been about the time of the adjustment. Now the parliamentary pension group agreed that to happen 2017.
– This means that pensioners can more easily predict their pensions and plan their finances, says Minister for Social Annika Strandhäll (S), chair of the board group.
The group includes C, FP, KD, M, MP, and S, but not SD and V.
The government anticipates an increase in income pensions by 4.7 per cent next year due to an improved economic development in Sweden.
– The pensioners have to look forward to a raise which is the highest since the new pension scheme was introduced. Along with a zero inflation means a strong increase for pensioners, says Annika Strandhäll.
Should the softer brake having been introduced already in 2016 had pension increase have stayed at 3.6 percent, according to the Ministry of Social Affairs.
The adjustment of the brake is a zero sum game. The pension system is neither loses or supplied money, the action is just about even out fluctuations.
– In the projections we see for the next 5-10 years there is nothing to suggest that pensions are lower, says Mats Persson (FP) retired the group.
But the brake reform does not guarantee against a reduced pension in the future, he points out:
– We have a pension scheme where the pension level depends on how many are working and how long people work.
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