Tag: Premium Pension

Senior man working at laptop at home

Abstract In 1998, Sweden passed a pension reform that introduced a second tier of mandatory individual accounts, the Premium Pension, in the public system. Of the total contribution rate of 18.5 percent, 2.5 percentage points go to the accounts. The first investment selections in the Premium Pension plan took place in the fall of 2000 when…

social_security_5

Introduction Many countries are discussing how to reform their pension systems in order to meet the demands of an aging society. A trend in these reform discussions is to introduce individual accounts as part of both public and occupational schemes. Sweden was an early mover in this process. In 1998, Sweden introduced a second tier…