To remain in-line with the increasing average lifespan, Sweden will raise the minimum pension collection age, the major political parties announced Thursday.
The current pension collection age is 61, and will rise to age 64 by 2026.
“That is positive, but it means that pensions … have to last a longer time,” the parties said in a statement obtained by Reuters. “In order to maintain a good and sustainable pension level, therefore, people need to work longer.”
In addition to raising the pension collection age, the reforms will also make it harder for companies looking to force out employees who’d like to continue working after they can start receiving their benefits. Due to various scandals, the overhaul will also tighten requirements for fund providers in the pension system.
The package was approved by the Social Democrats and Greens, the Moderates, and the Center, Liberal, and Christian Democrat parties. The deal will not affect state finances.