SWEDEN – Almost half a million new entrants will join the SEK18-20bn (e2-2.2bn) state premium pension system (PPM) at the end of May, more than doubling the earlier estimate of 200,000 new members.
The pension authority did test runs on the system, together with the National Social Insurance Board (RFV), and had to significantly increase their projected figures to around 490,000 entrants.
Most of the new pension savers are young people, who have earned their first state pension eligible wages in 1999, but around 100,000 of the entrants are early retirees, according to the PPM authority.
The deadline for choosing the investment funds is set for May 30.
The system currently holds SEK18-20bn of assets in more than 400 funds, a figure that will rise significantly after the new entrants’ and the existing members’ contributions for 1999 are paid in.
Before new entrants join, the system, entering its second round in April, will get an extra cash boost from the 4.4 million Swedes who are already in it.
Their contributions from 1999 will be placed in the system during a period of 4-5 working days, likely to start on April 9. While the new contributions are being allocated, no changes to participants choices will be taken in, but these will be processed after the cash has been placed according to member choice.