Pension saving is tax-advantaged, and has special requirements to ensure that the savings are genuinely for pensions and not an ordinary capital investment.
Include the 'five-year rule' where capital in pension insurance/savings account must be paid out when the insured/saver reaches a certain age, must be paid out in 5 years.
The five-year rule has been interpreted so that it is not possible to interrupt the pension payments during the first five years after the pension has started to be paid.
Proposals
SWE GVT said the purpose of proposals are to enable a more flexible retirement.
Bill proposes that in first 5 payment years it would be possible to pause payment of old age or survivor pension from insurance, and extend the payment period after starting.
Five-year rule is therefore proposed to be supplemented with exceptional provisions that specify how future payments must be made if the insured takes such a break.
Also proposes how payment period is determined if the payment period is extended.
Corresponding changes are also proposed for payouts from pension savings accounts.
Effectiveness
The new provisions are proposed to enter into force on Jan. 1, 2025.
Jun. 18, 2024 Proposals
On Jun. 18, 2024, SWE GVT commented further on the proposals that provide more flexible rules for payments from pension insurance and pension savings accounts.
Requirements to ensure savings are for retirement, not ordinary capital investment.
Oct. 2024 SWE PRL Approval
On Oct. 23, 2024, SWE PRL announced that it had agreed the proposal that it will be possible to suspend the payment of an occupational pension during the first five years.
This followed a report from Tax Committee in 2023, that was updated Oct. 15, 2024.
It should also be possible to extend the payment period during the first payment years.
The five-year rule means, among other things, occupational pension from a pension insurance or a pension savings account may not be paid out for less than five years.
These changes aim to make it more flexible when paying out occupational pensions.
The changes in the pension provisions will all come into effect from Jan. 1, 2025.
Regulators
SWE GVT; SWE PRL
Entity Types
CNSM; Corp; Pension
Reference
PR 10/23/2024; Rp 2024/25:SkU4, 10/15/2024; PR 6/18/2024; Bill 2023/24:159, PR 6/13/2024
