Sweden: Steeply Rising Older Workers’ Employment Rates in a Late-Exit Country | Mannheimer Zentrum für Europäische Sozialforschung

Stefanie König, Gabriella Sjögren Lindquist
Sweden: Steeply Rising Older Workers’ Employment Rates in a Late-Exit Country

Pp. 315-336 in: Dirk Hofäcker, Moritz Heß, Stefanie König (Eds.): Delaying Retirement. Progress and Challenges of Active Ageing in Europe, the United States and Japan. 2016. London: Palgrave Macmillan

Sweden has very high employment rates for all age groups and both men and women. Effective retirement age is even rising after pension reforms with a flexibilization of the statutory retirement age. Incentives are given for later withdrawal and longer working careers, since pensions are based on all earnings during working life. Disability pensions are the most important pathway for early exits out of the labor market for all age groups, even though the rules for eligibility had been restricted in the reforms. Occupational pensions as “early” exit gain importance for over 60-year-olds, with more highly educated workers being more likely to take advantage of occupational pensions as an early exit route. This highlights the importance of education for retirement timing.