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A bulk of Swedish population is aging creating pension headache in the nearest future

Friday, 15 April 2011
Newborns Swedes have a great chance of reaching their 90th birthdays but the elderly population may lead to reduced pensions as the size of the aging population becomes larger. The current pension system in the country will not be able to cover the large aging population given that few people will be there to work and fund that extra require funds.

Just over half of the girls born last year will reach their 90th birthday. The same is true though slightly fewer boys born last year, 43 percent, according to Statistics Sweden’s forecast. Of those born 90 years ago, only every fourth woman and every tenth man has reached such a high age.

The fact that more people are living longer is increasing Sweden’s elderly population (80+ years). Today there are 497 000 people over the age of 80. In 20 years time, this figure will have risen to nearly 800 000. The baby boom of the 1940s will also affect the number of people in this age group. In 50 years, every tenth Swedish person, or 1 million people, will be over 80. Today it is one in twenty.

Sweden’s population is expected to rise for every year in the forecast period 2011-2060. At the beginning of the 2020s, the population is expected to pass 10 million and in 50 years, it will be close to 11 million. The population increase has been unusually large in recent years as a result of both more migration into Sweden and an increased birth rate. Last year, the population grew by 75 000. In the next few years, the population growth rate is expected to fall, mainly as a result of less migrants coming into the country.

In 2010, 99 000 people migrated into Sweden, which is fewer than the three previous years. Migration will continue to decrease, according to the forecast. The new law on student tuition fees, introduced in the autumn of 2011, is expected to halve the number of non-EU/EEA foreign students over the next few years. The number of close family migrants is also expected to fall, although more foreign workers are expected to come to Sweden.

The birth rate is also forecast to drop slightly. There were 115 600 births in 2010.This gives a fertility rate of 1.98 children per woman. It is assumed that this has now peaked and the birth rate is expected to decline slowly over the next few years.

Officials now are saying that the issue is not just whether Swedish people are prepared to work longer, but if they must. According to a revised working period in Sweden, after the 67th  anniversary is attained, the right to employment is finished unless the employer agrees to an extension. The question is whether the limit is about to be raised further.
 An official spoke to radio Sweden, saying that it is possible and the government has appointed a committee under the retirement group which considers the 67-year limit as one of the age limits that lawmakers want to watch.
By Scancomark.se Team

Key Swedish Facts
Official Name Kingdom of Sweden
King Carl XVI Gustaf
Prime minister Frederick Reinfeldt
Population 9.3 Million
Capital City Stockholm
Monetary Unit Sweden Krona (SEK)
  1kr = 100 ore
Domain Name .se
Int. Dialling Code +46
Official Language Swedish - Main
Other minor languages
Religion Christianity
Main stock market Name NASDQ OMX
  • OMX 40
  • OMX 30
Internet Speed 5.7 Mbps (2009)
Vital Links
Statistics Sweden
Official gateway to Sweden
Government of Sweden
OECD  &  Sweden
Swedish Central Bank


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