The Reform of the Swedish Pension System – Initial Results

The Swedish pension reform probably represents the most far-reaching reconstruction of a mature public pay-as-you-go pension system undertaken in Western Europe after 1945. The reform was drafted back in 1992; a political agreement to implement it was reached in 1994, and its principal elements were legislated in 1998. This article provides a brief background and description of the reform process, with an emphasis on describing the main features of Sweden’s new public pension system. Also reported are some of the early experience with the new scheme and how it has been received.