Johan Sjostrom Marketing Director, KPA PENSION (SWEDEN) Friday, 27.9.2013.
-
Upload
kamryn-mullings -
Category
Documents
-
view
213 -
download
0
Transcript of Johan Sjostrom Marketing Director, KPA PENSION (SWEDEN) Friday, 27.9.2013.
![Page 1: Johan Sjostrom Marketing Director, KPA PENSION (SWEDEN) Friday, 27.9.2013.](https://reader036.fdocuments.in/reader036/viewer/2022062619/5518ad31550346a61f8b4d5e/html5/thumbnails/1.jpg)
Johan SjostromMarketing Director,
KPA PENSION(SWEDEN)
Friday, 27.9.2013
![Page 2: Johan Sjostrom Marketing Director, KPA PENSION (SWEDEN) Friday, 27.9.2013.](https://reader036.fdocuments.in/reader036/viewer/2022062619/5518ad31550346a61f8b4d5e/html5/thumbnails/2.jpg)
First and Second Pillar Pensions in Sweden
Conference on Pensions, September 2013, Hydra
Ev datum
![Page 3: Johan Sjostrom Marketing Director, KPA PENSION (SWEDEN) Friday, 27.9.2013.](https://reader036.fdocuments.in/reader036/viewer/2022062619/5518ad31550346a61f8b4d5e/html5/thumbnails/3.jpg)
State pension (I pillar): • Based on income• 18.5% on ones’ income is set aside• Income pension (16 percentage points)
• Pay-as-you-go, notional defined contribution• Premium pension (2.5 percentage points), individual choice of funds• Guaranteed pension (minimum level)• 46 430 EUR (2013) is the ceiling for accruing pensions rights
Occupational pension (II pillar):• Nation-wide collectively negotiated agreements
• Covering appr. 90 % of the workforce• Paid by employer, DC, individual choice
The Swedish pension system
![Page 4: Johan Sjostrom Marketing Director, KPA PENSION (SWEDEN) Friday, 27.9.2013.](https://reader036.fdocuments.in/reader036/viewer/2022062619/5518ad31550346a61f8b4d5e/html5/thumbnails/4.jpg)
1994Parliamentadoptsprinciplesof thenewpension plan
1991Commissionset up
1992Draftof a new pensionplan
1998Mainlegislationof thenewpension plan
2001Legislationon the automaticbalancemechanism
But transition quick i international comparison
2003 first payments according to new system
Socialdemocraticgovernment
Center-rightgovernment
Pension reform process - very long
1990 1991 1994 1998 2001 2003
Socialdemocraticgovernment
![Page 5: Johan Sjostrom Marketing Director, KPA PENSION (SWEDEN) Friday, 27.9.2013.](https://reader036.fdocuments.in/reader036/viewer/2022062619/5518ad31550346a61f8b4d5e/html5/thumbnails/5.jpg)
Civil servantsLocal & regional govern. empl.
Private white color
Private blue color
Swedish “pension market”, payments
ATP “old” old-agepensionplan
Inkomstpension (new)Premium pension (new)
6.2
1.0
Guaranteed pen. 1.00.6Survivors pen.
7.8
1.0 1.6
9.3
10.3
1.5
75%
15%
10%Occupa-tional
Public
Private
Percent of GDP“Market share”
0.0
![Page 6: Johan Sjostrom Marketing Director, KPA PENSION (SWEDEN) Friday, 27.9.2013.](https://reader036.fdocuments.in/reader036/viewer/2022062619/5518ad31550346a61f8b4d5e/html5/thumbnails/6.jpg)
Second pillar - four main collective agreements
White collar
750 000
Blue collar
1 200 000
Private sector employees Public sector employees
State
215 000
Municipals and Regions
1 100 000
![Page 7: Johan Sjostrom Marketing Director, KPA PENSION (SWEDEN) Friday, 27.9.2013.](https://reader036.fdocuments.in/reader036/viewer/2022062619/5518ad31550346a61f8b4d5e/html5/thumbnails/7.jpg)
Second pillar pensions – contributions/repl.rates
Collective agreement DC (contributions and income ceilings)
DB
Private sector,Blue collar
4,5 % < 46 430 EUR30 % > 46 430 EUR
Private sector,White collar
4,5 % < 46 430 EUR30 % > 46 430 EUR
< 1979 (DB)> 46 430 EUR
State sector 4,5% < 105 710 EUR Appr. 60 %replacement> 46 430 EUR
Municipals and regions 4,5% < 46 430 EUR30% > 46 430 EUR
< 1985 DB> 46 430 EUR
![Page 8: Johan Sjostrom Marketing Director, KPA PENSION (SWEDEN) Friday, 27.9.2013.](https://reader036.fdocuments.in/reader036/viewer/2022062619/5518ad31550346a61f8b4d5e/html5/thumbnails/8.jpg)
Swedish market – second pillar pensions
![Page 9: Johan Sjostrom Marketing Director, KPA PENSION (SWEDEN) Friday, 27.9.2013.](https://reader036.fdocuments.in/reader036/viewer/2022062619/5518ad31550346a61f8b4d5e/html5/thumbnails/9.jpg)
Market volumes, life insurance
![Page 10: Johan Sjostrom Marketing Director, KPA PENSION (SWEDEN) Friday, 27.9.2013.](https://reader036.fdocuments.in/reader036/viewer/2022062619/5518ad31550346a61f8b4d5e/html5/thumbnails/10.jpg)
Where can Mr Svensson invest his second pillar pension?
Traditionell Försäkring
KAP-KL*
SAF-LO
PA-03*
ITP
FondförsäkringIcke-valsbolag
KAP
KTP
![Page 11: Johan Sjostrom Marketing Director, KPA PENSION (SWEDEN) Friday, 27.9.2013.](https://reader036.fdocuments.in/reader036/viewer/2022062619/5518ad31550346a61f8b4d5e/html5/thumbnails/11.jpg)
What’s the status of my pension?
![Page 12: Johan Sjostrom Marketing Director, KPA PENSION (SWEDEN) Friday, 27.9.2013.](https://reader036.fdocuments.in/reader036/viewer/2022062619/5518ad31550346a61f8b4d5e/html5/thumbnails/12.jpg)
The orange envelope
• Started in 1999
• Distributed each year to citizens born in 1938 and later
– Pensionable income > 1 843 EUR
• Distribution:– January to March
• 6,2 Million envelopes each year (population 9,3 Million)
![Page 13: Johan Sjostrom Marketing Director, KPA PENSION (SWEDEN) Friday, 27.9.2013.](https://reader036.fdocuments.in/reader036/viewer/2022062619/5518ad31550346a61f8b4d5e/html5/thumbnails/13.jpg)
Projections made in the orange envelope
Age of retirement 0 % growth
61 year
65 year
70 year
![Page 14: Johan Sjostrom Marketing Director, KPA PENSION (SWEDEN) Friday, 27.9.2013.](https://reader036.fdocuments.in/reader036/viewer/2022062619/5518ad31550346a61f8b4d5e/html5/thumbnails/14.jpg)
Does Mr Svensson read his orange envelope?
![Page 15: Johan Sjostrom Marketing Director, KPA PENSION (SWEDEN) Friday, 27.9.2013.](https://reader036.fdocuments.in/reader036/viewer/2022062619/5518ad31550346a61f8b4d5e/html5/thumbnails/15.jpg)
Does Mr Svensson understand the orange envelope?
![Page 16: Johan Sjostrom Marketing Director, KPA PENSION (SWEDEN) Friday, 27.9.2013.](https://reader036.fdocuments.in/reader036/viewer/2022062619/5518ad31550346a61f8b4d5e/html5/thumbnails/16.jpg)
www.minpension.se
• Implemented in 2004
• 1,8 million users (2012)
• A joint initiative by the State and the Insurance Industry
• I, II and III pillar pensions
• A tool for individual forecasts
![Page 17: Johan Sjostrom Marketing Director, KPA PENSION (SWEDEN) Friday, 27.9.2013.](https://reader036.fdocuments.in/reader036/viewer/2022062619/5518ad31550346a61f8b4d5e/html5/thumbnails/17.jpg)
Pension forecasts from different sources
Orange envelope
Yearly statement &projections I pillar
Green envelope
Yearly statement &projections II pillar
My pensionwww.minpension.se
Forecasts on-demandI, II and III pillar
![Page 18: Johan Sjostrom Marketing Director, KPA PENSION (SWEDEN) Friday, 27.9.2013.](https://reader036.fdocuments.in/reader036/viewer/2022062619/5518ad31550346a61f8b4d5e/html5/thumbnails/18.jpg)
Initiatives in the near future
• Increasing minimum pension age – Currently at 61 year in first pillar
– Currently at 55 year (DC) and 61 year (DB) in second pillar
• Premium Pension in first pillar?– Funded or not funded?
– Number of funds?
• Tax incentives for third pillar pensions?– To be or not to be?
• Financial literacy– How can Mr Svensson be more financial literate?