The amount of pension you receive from the Swedish Pensions Agency (Pensionsmyndigheten) depends on how much you have paid to the Swedish Tax Agency (Skatteverket) via taxes and social security contributions. Entrepreneurs must pay two different pension contributions – the retirement pension contribution, which corresponds to the social security contribution that employers pay for their employees, and the public pension contribution that wage earners pay through taxes.

Sole traders, trading partnerships, or limited partnerships

When you run a sole trade, trading partnership or limited partnership, your public pension is based on the declared net profit on which you pay taxes. The smaller the net profit on which you pay taxes, the less public pension money you will receive.

You pay a retirement pension contribution amounting to 10.21% of the net profit from your active business. The retirement pension contribution is part of the personal contributions you pay, with a total of 28.97 % of the net profit. Like ordinary wage earners, you can write off the public pension contribution, which constitutes 7 % of the net profit on which you pay taxes.

Limited company

When you run a limited company, you must withdraw a salary in order to receive a pension. Your public pension is based on the salary you receive and on which you pay taxes.

If you run a limited company, the company pays a retirement pension contribution totalling 10.21 % of your salary. The retirement pension contribution is part of the employer’s contribution amounting to 31.42 % of the salary, which the company pays to the Swedish Tax Agency. Like ordinary wage earners, you can write off the public pension contribution, which constitutes 7 % of the salary on which you pay taxes.

Maximise your public pension provision

To start earning a public pension, you must have an annual income of at least SEK 22,208 (2023). There is also an upper income ceiling for pension entitlement corresponding to a salary of SEK 49,938 per month (2023). If you can withdraw a salary or net profit, you will maximise your public pension.

Own savings for pension 

The vast majority of employees receive an occupational pension from their employer, in addition to the general pension they receive from the state. As a business owner, you must compensate for the lack of an occupational pension by means of your own pension savings. A general rule of thumb is to save 4.5–6 % of your salary. This equates to what most employers pay their employees as an occupational pension.

Sustainable pension savings

Occupational pensions for employees can be one of the biggest costs for any business. Consequently, this can also represent a large share of the business’ sustainability impact, if the pension funds are invested in, and administered by, companies that are not contributing to a sustainable society. Ask your pension provider how they can make it simple for you and your employees to choose sustainable funds and investments.

When it comes to your national public pension, you can choose sustainable funds for the part called premium pension, it is easy and free.

Search funds at the Swedish Pensions Agency (in Swedish).

Deductible savings for limited companies

Unlike ordinary wage earners, people who run a limited company may deduct the payments they make into private pension savings accounts for your self. You may deduct private pension savings amounting to up to 35 % of your salary on your income tax return. To make a deduction, you must be saving for your retirement in a pension insurance or pension savings account. The deduction cannot exceed a maximum of 10 Price Base Amounts, i.e., a maximum of SEK 525,000 (2023).

As usual, your company pays employer contributions on the entire salary, but you avoid paying income tax on the part that corresponds to the deduction, because the savings are deducted on your tax return. If you have employees in the company, the employees themselves can make deductions for private pension savings if they lack an occupational pension in their employment.

Deductible savings for sole proprietorships

Unlike ordinary wage earners, those who receive income from an active business may deduct their private pension savings. You may deduct private pension savings amounting to up to 35 % of your income from the business. To make a deduction, you must be saving for your retirement in a pension insurance or pension savings account. The deduction cannot exceed a maximum of 10 Price Base Amounts, i.e., a maximum of SEK 525,000 (2023).

Private savings can lower your public pension

As a sole proprietor, if you deduct pension savings you will lower the net profit on which your public pension and many other social benefits are based. The reduction consists of the amount of pension savings plus the so called ‘special pay-roll tax’ of 24.26 % on the pension savings amount.

If you wish to maximise your earnings towards your public pension and have access to social benefits such as sickness benefits, you should avoid deducting private pension savings as long as your business’s net profits do not exceed approximately 49,000 per month (2023).

Make your own pension forecast at the Swedish Pensions Agency

More about pension at the Swedish Pensions Agency

Continue to run the company when you turn 66

If you want to continue running your business after the age of 66 you can earn more money because you get tax benefits. You can continue to run the company even if you have started withdrawing part or all of your pension.

Increased employment tax credit

From January of the year you turn 66, you get an increased employment tax deduction and then pay less tax on your earned income.

Lower employer contribution or personal contribution

From the year you turn 67, your employer contribution or personal contribution is reduced. You will then only pay the old-age pension fee, which is 10.21 percent.

Increased basic deduction

From the year you turn 67, you get an increased basic deduction. This results in lower taxes on income and on pensions.

If you are a sole trader you can reduce your own contributions from the age of 63 or 64. You can do this by withdrawing your entire state pension. More detailed information and pension tips for entrepreneurs of all ages can be found on the Swedish Pensions Agency's website.

Earn money by running the company after 66 on pensionsmyndigheten.se (in Swedish)

Frequently asked questions and answers

Insurance and pension schemes - FAQ