Trade Tuesday | Stable Ground
Hey, you beautiful. 💛
Today we are going to talk about something that may sound dry on the surface – a terminated collective agreement – but which is fundamentally about something deeply human: being able to age in security, regardless of how long we choose to remain in working life. I have looked through the news, read the original sources at LO and Kommunal, and looked at how other countries are solving the same issue. Sit down with a cup of tea, this is worth understanding properly.
What really happened?
At the end of June, the LO trade union terminated its agreements with the Confederation of Swedish Enterprise regarding Afa insurance, adjustment insurance and the SAF-LO collective agreement pension – the occupational pension that applies to private-sector employees in Sweden. So it is not the state or the pension authority that is changing anything; it is two parties in the labor market negotiating their own agreement, just as they have done many times before.
Today, it works like this: if you are covered by the SAF-LO Contractual Pension, your employer will start paying money into your occupational pension the month you turn 22, and payments will normally stop at the age of 65. If you want to continue working after 65, you can agree with your employer to continue making payments – but the employer is not obliged to agree to this. LO's demand is to remove the upper age limit completely, so that those who choose to continue working after 65 will also continue to earn occupational pension, just as is already the case for employees within the municipality and region through the AKAP-KR agreement.
This is therefore an ongoing negotiation, not a change that has already been decided. The current terms and conditions apply until 1 December 2026, or until the parties agree on something new. The termination is basically a way of putting pressure on the negotiation – a completely normal move in Swedish collective bargaining.
Why I actually think this is good news
I know that terminated contracts sound worrying in headline form. But let's peel away the drama for a second and look at what is actually being pushed forward here: an acknowledgement that working life has already changed. We live longer, many of us want and can work longer, and then it is only reasonable that the pension system follows suit. The fact that LO is now pursuing the same line that already exists for municipal and regional employees is not a sign that something has gone wrong – it is a sign that the system is maturing and becoming fairer between different parts of the labor market.
There’s also a nice point here: your last day of work can be just as significant for your retirement as your first. If you’re close to retirement age and thinking about continuing to work for a while, it’s right now, in the middle of this negotiation, that those rules are actually being shaped. It’s your life and your future that’s being discussed – and it’s worth following with open eyes and warm curiosity rather than worry.
This is how it looks in the rest of the world
I always find it enlightening to look up a little. According to the Mercer CFA Institute Global Pension Index, which annually compares pension systems in over fifty countries based on how well they provide adequate benefits, how sustainable they are over time and how reliable they are, the list is consistently topped by the Netherlands, Iceland and Denmark, with Singapore as a new addition to the top tier. These countries combine broad basic security with well-developed and flexible occupational pension systems, and the flexibility around when and how you withdraw your pension is often highlighted as a strength.
Denmark is a good example of a country that is fundamentally similar to Sweden – a settlement-based national pension combined with collectively agreed occupational pensions – but has built in more flexibility around withdrawals and a higher level of confidence in the long-term sustainability of the system. The Netherlands has historically had one of the world's most generous systems, built on a basic pension linked to the minimum wage plus extensive occupational pensions, although the country is now undergoing a major reform towards more individual solutions, much like Sweden did several decades ago.
Sweden, for its part, has actually lost ground in international comparisons in recent years and has been ranked as the weakest pension system in the Nordic region, while still being near the top globally. What is holding Sweden back is partly precisely issues like the one we are discussing today – how well the system is adapted to a longer and more flexible working life – as well as a demographic challenge with an aging population.
And for perspective: the US system, which is based much more on individual savings and less on collective security, falls far behind in the same comparison. That says something nice about the Nordic model – that we build our security together, through collective agreements like SAF-LO, rather than each person having to manage everything on their own. This negotiation is therefore not a sign that the Swedish model is flawed, but proof that it is still alive and can be shaped by reality.
It is also worth mentioning Finland and Norway, both of which rank high in the same comparison thanks to stable, well-regulated systems and high levels of trust among the population. Finland’s strength lies in the integrity of the system in particular – supervision and regulations are among the most reliable in the world – while Norway benefits from its large state pension fund as an extra buffer on top of the regular pension system. The pattern is clear: those countries that combine a broad, solidarity-financed basic security with well-regulated collective occupational pensions fare best, regardless of whether they call themselves Nordic or not.
What warms my heart is to see how the Nordic model, including Sweden, is based on the idea that we carry security together – ”fellow human beings, not against human beings” if you will. The ongoing negotiation on SAF-LO is an expression of that very spirit: the parties sit down, negotiate, and together shape a system that will last for more generations and more ways of living and working.
Women and men – differences and similarities
This is a question that is close to my heart, because the numbers tell a story that many of us recognize in our own lives.
The differences: According to the Swedish Pensions Agency, women's average total pension is currently significantly lower than men's - in the order of 20–30 percent lower depending on the measure used, and the difference is actually greater in Sweden than in the rest of the Nordic countries. The explanation is rarely dramatic in itself, but rather the sum of many small decisions: women work part-time to a greater extent, take more parental leave, account for more VAB days and have historically had lower salaries. Since both the national pension and the occupational pension are based on the lifetime income principle - that the pension reflects what you have earned throughout your life - each year of part-time work or month of parental leave takes effect much later, often when it is difficult to compensate for it.
The occupational pension actually increases the gap more than the public pension does, since it is directly linked to salary. Two people with otherwise equally long working lives but in industries with different pension provisions can end up thousands of kronor apart each month.
The similarities: Here's the beauty – when women and men make the same active choices about their occupational pension, such as choosing unit-linked insurance or moving their capital, the patterns are surprisingly similar. The proportion who make active choices is about the same, and the return on the choices they make does not differ significantly between the sexes. The gap is therefore not about women being worse at managing money – it is about structures in working life that provide different conditions even before saving even begins.
The encouraging news is that the gap is actually narrowing somewhat over time, especially among younger retirees who have had a more consistent income throughout their working lives. Change takes time because the pension system remembers the entire life – but the direction is right.
Amaelle's smart tips – to think about and plan for
No matter where you are in life right now, here are some concrete things worth taking with you:
- Log in to minPension.se at least once a year. It's the only place where you see the whole picture – public pension, occupational pension and private savings – all in one place. It takes ten minutes and gives you a completely different sense of control.
- If you plan to work after 65 and covered by SAF-LO: discuss the matter with your employer well in advance, before you turn 65, not afterwards. If you agree on continued payment – make sure to get it in writing. Another alternative to suggest is compensation in the form of a higher salary instead, so that it does not suddenly become cheaper for the employer to have you employed than before.
- If you are self-employed, like many, you have no SAF-LO to lean on at all – it is extra important to build your own, conscious pension savings in parallel with the growth of the business. A small but regular amount each month almost always beats a large but sporadic one.
- If you are at home with children or are reducing your working hours, talk openly with your partner about compensating each other financially for the lost retirement savings. It's still uncommon for couples to do this, but it's one of the easiest ways to close the retirement gap in your relationship.
- Follow the hearing until December 1, 2026. What you read about today can directly affect what your own retirement looks like in ten, twenty or thirty years – especially if you see yourself working beyond 65.
- Remember that terminating an agreement is not the same as losing protection. The current rules apply until something new is in place. No reason to panic – just good reason to pay attention.
- Talk about your pension as a couple, not just about salary. It's easy to focus on joint finances here and now – rent, food, vacations – and forget that those who earn less or work part-time are also building a smaller pension. An annual "pension conversation" at home, preferably while you log in to minPension together, can make a big difference in ten to twenty years.
In conclusion
Pensions may feel like a topic far away in time, something too ”late” – but the truth is that every year, every election, every conversation with an employer or partner builds the foundation you will one day stand on. That LO is now pushing the issue of a more flexible, fairer pension system is a sign that the Nordic model continues to evolve in step with how we actually live our lives today.
Take care of your stable foundation, my dear. It deserves your attention – with love, not with worry.
Sources: LO, Municipal, Swedish Pensions Agency, Fora, AMF, minPension, Konsumenternas, Swedbank, Länsförsäkringar's Gender Equality Index 2026, Säkra, Swedish Equality Agency, Mercer CFA Institute Global Pension Index.