We live in a rich country. The accumulated the fortune is just over SEK 12 billion for 000. A new record level. At the same time, we have a pension system that forces pensioners into a life of relative poverty. How is it that? The reason is simple. Joel Dahlberg writes in SvD Business:
"The cause of the pension woes lies in our pension system. In the old ATP system – national pension plus ATP – many were guaranteed a certain pension level (in relation to the salary during the 15 best income years). In the new system there are no guarantees. The pension is instead based on how much pension contributions you pay into the system. /…/ In combination with a longer average life expectancy, the result is devastating.”
In this new system, "every penny" counts. That was the advertising for the new pension settlement 15 years ago.
Of course there is still a brake in the system. The so-called guarantee pension. But it is, diplomatically speaking, not dramatically high. Rather too low for a decent welfare state.
So, what would happen if we raised pensions? Well, the turnover rate would increase. Pensioners would largely consume more. Those who have a very low pension would not save to any greater degree. Increased turnover may be needed after all the Alliance's tax cuts. One might think that tax cuts lead to increased turnover. But productivity growth was minimal after 2007. So raise pensions. For the pensioners' sake, for all of us. For the good welfare country Sweden.