By Patrick Anderson
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Extra resources for Ageing and Employment Policies: Sweden (Ageing and Employment Policies)
Of course, financial incentives to withdraw can come from other sources such as social security benefits, occupational pension schemes, own savings, etc. Therefore to have a better picture of how replacement rates affect incentives to withdraw, one would have to take into account all other financial resources, as well as social behaviour. g. part-time workers, there is a minimum guaranteed pension. On top of the guaranteed pension there is also an income-tested housing allowance. 12 12. In the old system there was a possibility to withdraw early with a corresponding lifetime decrease in entitlements (as discussed above).
For people aged 25-59 years, participation rates are very similar at all ages. Only two age groups – below the age of 25 and above the age of 60 diverge from an otherwise very homogenous participation pattern. 1). Differences in participation rates between men and women are, in contrast to most other countries, also very narrow in Sweden. Participation rates 31 of older Swedish women are also substantially higher compared to almost all other OECD member countries. This is one of the principal reasons for higher participation rates for men and women combined in the 25-64 age group.
Moreover, around 81% of the disabled had a full-time disability pension. This indicates that probably less than 10% of disabled workers are actually working the remaining time. 1). 1. Different ways to withdraw from the labour market in Sweden for workers aged 60-64 years, 1999 Men % Women 30 25 20 15 10 5 0 Disability pension Occupational pension Long-term sickness Unemployment Old-age pension Other ways Source: National Social Insurance Board (2002). Larger pressure on the welfare system in the future In the future, there will be even greater pressure on the social security system since occupational pensions are likely to become a less attractive path to early retirement.