Sweden consults on ending traditional premium-pension insurance

Sweden has opened consultation on a proposal to stop offering traditional insurance for the premium pension and let existing policyholders leave a choice that is currently irreversible.

The government sent the inquiry’s proposals for consultation on 15 October. They would make AP7 Såfa the state’s pension-payout product and phase out traditional insurance, while preserving pensioners’ ability to choose funds on the premium-pension marketplace.

The premium pension is the investment-based part of Sweden’s public pension. When payments begin, savers can currently remain in fund insurance or switch to traditional insurance, where Pensionsmyndigheten takes over management and provides a guaranteed component.

Under the current rules, that switch cannot be reversed. The inquiry proposes allowing people already in traditional insurance to opt out.

The underlying recommendations were presented in August. The new step is consultation before the government decides how to proceed; it has not changed savers’ existing options.

Authorities, organisations and members of the public can submit views. The response deadline is 1 February 2027.

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