The Swedish pension system. Notional accounts and sustainability factor

Abstract

This article aims to present, using a simple and complete procedure, the public pension system «Notional defined contribution accounts». This study focuses on the Swedish Pension System, whose background as pay-as-you-go and defined contribution is quite complete. Drawing on the different annual reports presented by Swedish Pensions Agency, this article is a statement of all the terms used for the calculation of pensions and the procedure followed when calculating and applying the sustainability factor.

This work aims to show the key aspects of a sustainability factor in a pension system adapted to its application, something that must be considered by the Independent Experts Committee that is working in the field of Spanish Social Security.