ITP 1 and ITP 2

For those of you included in collectively agreed upon pension plans
in the private sector, you have either ITP 1 or ITP 2.

ITP 1

Employees born in 1979 and later.

Defined contribution retirement pension

ITP retirement pension applies when you turn 25 years.

A defined contribution retirement pension implies that the premium, but not the pension amount, is determined in advance.

You can choose which company that should manage your pension and what form of savings you prefer.

How much money is paid in as premiums?

  • The premium is 4.5 percent of your monthly salary up to SEK 40,250
  • For a salary amount in excess of SEK 40,250 the premium is 30%.

How much will I receive in pension benefits?

This cannot be determined in advance. The amount of your pension is dependent on your salary, how long you will have ITP 1 and yield at the pension placement, that is, how you have chosen to invest your pension. Get an overview in your annual statement.

ITP 1 also includes

  • Disability pension benefits
  • Occupational group life insurance (TGL)

Cover for family can be added

  • Repayment cover
  • Family cover

ITP 2

Employees born in 1978 and earlier
(certain companies have ITP 1 for all personnel, regardless of their age)

Defined benefit retirement pension

A defined benefit retirement pension implies that the pension amount, but not the premium, is determined in advance. The pension is divided into two parts:

A. Your defined benefit portion is managed by Alecta. This is called ITP 2.
B. You can invest your defined contribution portion. This is referred to as ITPK and is a smaller part than ITP 2.

How much money is paid in as premiums?

A. The amount of the premium is calculated on the basis of your age, salary, calculated period of employment and the occupational pension benefits you have earned in previous employment.
A. ITPK is equivalent to 2 percent of your salary. You can invest this portion yourself.

How much will I receive in pension benefits?

A. You can get an overview in your annual statement. If you work for at least 30 years, between age 28 and 65 with an ITP pension, your retirement pension will be as follows:

Annual salary Pension in % of salary portion
Up to SEK 483,000 10 %
SEK 483,000 - SEK 1,288,000 65 %
SEK 1,288,000 - SEK 1,932,000 32.5%

B. The amount of your ITPK is dependent on your salary, how long you have had ITPK and how you have chosen to invest the premiums.

ITP 2 also includes

  • Disability pension benefits
  • Occupational group life insurance (TGL)
  • Family pension (included if you earn more than SEK 39,590 per month)

Cover for your family can be added

  • Repayment cover
  • Family cover