Swedish roundup: SRI, Storebrand, Collectum, Prognosia, AP7, Pensionsmyndigheten
SWEDEN - The majority of Swedes believe in sustainable pension investments, according to a study by SPP, the pension and insurance provider owned by Storebrand.
As many as half believe that responsible investments are the most profitable but despite this, only a quarter say their pension assets are invested according to sustainable and responsible investment principles. According to the survey, seven out of 10 believe it is important that their pension assets are invested with environmental and social criteria in place. Women in particular are of this opinion.
Meanwhile, Swedish pensioners receive 53% of their pension income from the public pension system, according to a study by Collectum, the administrator of the Swedish white-collar occupational pension system ITP.
Privately-employed professionals aged 45 with a salary of SEK35,000 (€4,000) per month will receive SEK6,500 from occupational pensions to add to the public pension income. In 2008 the average income in Sweden was SEK21,725 per month and the public pension was SEK11,423 in 2010, or 53% of the average income.
According to another study by Prognosia, a pension provider, Swedes would prefer to retire at 60 but believe that realistically they will have to wait another 5 years, until 65, before they will actually retire.
The study is based on the opinions of 6,590 Swedes between the ages of 30-61 who have responded on questions about when they would like to retire and when they think it would be financially viable to do so.
The difference in opinion between the sexes is marginal whereas opinions differ more between different age groups. Those between the ages of 30-40 want to retire at 59, those between 40-50 wish to do so at 60 and those over 50 want to work until 61.
Swedes under the age of 50 do not believe they will have to work until they are 65, whereas those over 50 believe it is realistic to retire at 64.
Finally, AP7, the government option within the premium pension system, returned 12.71% in 2010, making the state option a good choice for investors. The other funds within the premium pension system retuned 9.2% in 2010.
AP funds 1-4, the national buffer funds, will contribute SEK852.8 million to the administration of the country’s premium pension system in 2011, according to a decision by the government.
The remainder of SEK445.3 million will be taken out of the premium pension system itself. The costs for Pensionsmyndigheten, the Swedish Pensions Agency are expected to be SEK862.6 million.