STUDY Occupational Pensions in Sweden KAREN M. ANDERSON December 2015 „ „ Sweden is known for its comprehensive welfare state, and the pension system is no exception. A single, unified statutory pension scheme provides earnings-related benefits to all Swedish workers. Sweden`s extensive system of mandatory and collectively negotiated occupational pensions is a less well known, yet vital part of the overall pension system. „ „ The single most important precondition for a Swedish-style approach to occupational pension provision is a robust collective bargaining system with mandatory occupational pension coverage. In Sweden 90 percent of all workers are covered by collectively negotiated occupational pension schemes. „ „ Most occupational pension schemes are defined contribution with individual investment choice, which add an average of 10 percent to income insured by the statutory pension system. „ „ Non-profit organisations owned by employers and unions administer private sector schemes, limiting the range of financial institutions offering products to occupational scheme members. This keeps management fees low and excludes risky investment vehicles.