Sweden implements pension reform for self-employed workers

A recent pension reform in Sweden, implemented via royal decree 11/2024, introduces new financial incentives for individuals who delay their retirement. Under the new rules, which began applying in April 2025, self-employed individuals can increase their future pension by 2% for every period of work lasting more than six months but less than a year, starting from their second year of delayed retirement. This complements the existing incentive of a 4% increase for every full year of delayed work.

Self-employed workers are significantly more likely to utilize delayed retirement than employees, with data indicating that 31.1% of new RETA retirements follow this model compared to 6% in the general regime.

However, the rising retirement age has faced criticism regarding its impact on physically demanding professions. Critics argue that the policy places undue pressure on workers in sectors such as healthcare, industry, and manual labor, where physical exhaustion and occupational injuries are common. There are calls for structural changes, such as increased pension contributions or a work-life supplement, to ensure that those who have worked for 40 to 45 years can retire with economic security without facing physical or financial hardship.