What is an occupational pension?

The Swedish pension system is often described as a pyramid. The bottom of the pyramid is intended to represent the part paid by the state, the middle is the pension paid by the employer or the company and the top of the pyramid is intended to represent the individual's own savings.

The occupational pension is therefore the part that you as a self-employed person or you as an employee receive as a contribution to your pension from your job.

As an employee, it is important that you have an occupational pension through your work in order to have a secure pension in the future. If you do not have an occupational pension in your employment, you need to supplement it through your private savings, otherwise there is a risk that your pension in the future will be very low.

As a self-employed person, you decide how to save for your pension. Many entrepreneurs choose to save their profits in their company. We don't think that's wrong, but we also think that you should have an occupational pension that is secured by insurance and remains in place no matter what happens to the company and the capital saved in the future.

Saving in an occupational pension also has a more favourable tax aspect. Compared with paying a salary, where the employer's contribution is 31.42%, the corresponding special payroll tax on pension and insurance premiums is 24.26%, about 7% lower, which you as a business owner can spend on pension savings within an occupational pension at no cost to you.