The Market for Retirement Products in Sweden
Far-reaching changes in the regulation of financial markets and the organization of public pensions in the 1980s and 1990s transformed the landscape for retirement products in Sweden. First, banking and insurance were extensively deregulated in the...
| Main Author: | |
|---|---|
| Format: | Policy Research Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2012
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2008/10/9912072/market-retirement-products-sweden http://hdl.handle.net/10986/6935 |
| id |
okr-10986-6935 |
|---|---|
| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ADDITIONAL CONTRIBUTIONS ADMINISTRATIVE FEE AGE OF RETIREMENT ANNUITY VALUES AVERAGE BENEFIT AVERAGE PENSION AVERAGE WAGE BANK DEPOSITS BANKS BASIS POINTS BENEFICIARIES BENEFIT PLANS BEQUEST BEQUESTS BOND BOND PORTFOLIO BOND RATE BONDS BORROWING BROKER CALCULATION CALCULATIONS CENTRAL BANK CLAIMANTS CONSERVATIVE INVESTMENT CONTRACTUAL SAVING CONTRIBUTION CONTRIBUTION RATE CONTRIBUTION SCHEMES CONTRIBUTIONS CREDITS CURRENCY DEBT DEFINED CONTRIBUTION PENSION DEPOSIT DEPOSITS DERIVATIVES DISABILITY DISABILITY INSURANCE DISPOSABLE INCOME EARLIER RETIREMENT EARLY RETIREMENT EMPLOYER CONTRIBUTION EMPLOYER CONTRIBUTIONS EQUITIES EQUITY FUND EQUITY FUNDS EQUITY MARKET EQUITY PORTFOLIO EXCHANGE RATE FACE VALUE FINAL EARNINGS FINANCIAL DATA FINANCIAL INSTITUTIONS FINANCIAL INSTRUMENTS FINANCIAL LIBERALIZATION FINANCIAL MARKET FINANCIAL MARKETS FINANCIAL POLICY FINANCIAL PORTFOLIO FINANCIAL RISKS FINANCIAL SYSTEM FINANCIAL SYSTEMS FUND MANAGER FUND MANAGERS FUTURE GROWTH GOVERNMENT BOND GOVERNMENT BONDS GOVERNMENT BUDGET HEALTH INSURANCE HOLDING HOLDINGS INCOME INCOME REPLACEMENT INCOME REPLACEMENT RATES INCOME TAX INCOME-TAX INDIVIDUAL ACCOUNTS INDIVIDUAL PENSION INDIVIDUAL PENSIONS INDIVIDUAL RETIREMENT INDIVIDUAL RETIREMENT ACCOUNTS INDIVIDUAL SAVING INHERITANCE INSTITUTIONAL DEVELOPMENTS INSURANCE INSURANCE COMPANY INSURANCE MARKET INSURANCE POLICIES INSURANCE PREMIUMS INSURANCE PRODUCT INSURANCE PRODUCTS INTEREST RATES INTERNAL RATE OF RETURN INTERNATIONAL BANK INTERNATIONAL STANDARDS INVESTING INVESTMENT CHOICES INVESTMENT DECISIONS INVESTMENT FUNDS INVESTMENT POLICIES INVESTMENT PORTFOLIO INVESTMENT RETURNS LABOR FORCE LABOR MARKET LEVY LIFE EXPECTANCY LIFE INSURANCE LIFE INSURANCE COMPANIES LIFE INSURANCE COMPANY LIFE INSURERS LIFETIME LIQUID ASSETS LOAN LOCAL GOVERNMENT LOCAL GOVERNMENTS LOW INCOME LUMP SUM LUMP SUMS MANDATORY CONTRIBUTIONS MARKET SHARE MARKET SUPERVISION MARKET VALUE MARKETING MARRIED COUPLES MARRIED WOMEN MATURITY MINIMUM PENSION MUTUAL FUNDS NATIONAL DEBT NATIONAL DEBT OFFICE NET ASSETS NEW JOBS OCCUPATIONAL FUNDS OCCUPATIONAL PENSION OCCUPATIONAL PENSION SCHEMES OCCUPATIONAL PENSIONS OCCUPATIONAL PLANS OCCUPATIONAL SCHEME OCCUPATIONAL SCHEMES OLD-AGE PENSION PENSION AGE PENSION BENEFITS PENSION FUND PENSION FUNDS PENSION INCOME PENSION LITERATURE PENSION PLANS PENSION PROVISION PENSION REFORM PENSION REFORMS PENSION RIGHTS PENSION SAVING PENSION SCHEME PENSION STATEMENT PENSION SYSTEM PENSION SYSTEMS PENSIONERS PERSONAL SAVING PORTFOLIO CHOICE PORTFOLIO CHOICES PORTFOLIO REGULATIONS PORTFOLIOS PREMIUM PAYMENTS PRICE INDEXATION PRIVATE FUND PRIVATE FUNDS PRIVATE PENSION PRIVATE SAVING PROBABILITY PUBLIC EXPENDITURES PUBLIC PENSION PUBLIC PENSIONS PUBLIC SAVING PURCHASES PURCHASING POWER RATE OF GROWTH RATE OF INFLATION RATE OF RETURN RATES OF RETURN REPLACEMENT RATE REPLACEMENT RATES RESERVES RETIREMENT RETIREMENT AGE RETIREMENT AGES RETIREMENT BENEFIT RETIREMENT INCOME RETIREMENT PRODUCT RETIREMENT PRODUCTS RETIREMENT SAVING RISK CAPITAL RISK MANAGEMENT SAFETY NET SALARY SALES SAVER SAVERS SECURITIES SECURITIES MARKETS SELF-EMPLOYMENT SEVERANCE PAY SOCIAL INSURANCE SOCIAL SECURITY SOCIAL SERVICES SOLE PROVIDER SOLVENCY SOURCES OF INCOME STOCK MARKET STOCK MARKETS SUMMARY OF CHANGES SUPERVISORY AGENCY SUPERVISORY AUTHORITY TAX CODE TAX DEDUCTION TAX LAW TAX SYSTEM TELECOMMUNICATIONS TOTAL COSTS TRADING TRANSACTION UNEMPLOYMENT VALUE OF ASSETS VARIABLE RATE WAGE WAGES WELFARE STATE WHITE-COLLAR WORKERS WITHDRAWAL WORKING AGE WORKING AGE POPULATION WORLD MARKET WORTH YOUNGER COHORTS |
| spellingShingle |
ADDITIONAL CONTRIBUTIONS ADMINISTRATIVE FEE AGE OF RETIREMENT ANNUITY VALUES AVERAGE BENEFIT AVERAGE PENSION AVERAGE WAGE BANK DEPOSITS BANKS BASIS POINTS BENEFICIARIES BENEFIT PLANS BEQUEST BEQUESTS BOND BOND PORTFOLIO BOND RATE BONDS BORROWING BROKER CALCULATION CALCULATIONS CENTRAL BANK CLAIMANTS CONSERVATIVE INVESTMENT CONTRACTUAL SAVING CONTRIBUTION CONTRIBUTION RATE CONTRIBUTION SCHEMES CONTRIBUTIONS CREDITS CURRENCY DEBT DEFINED CONTRIBUTION PENSION DEPOSIT DEPOSITS DERIVATIVES DISABILITY DISABILITY INSURANCE DISPOSABLE INCOME EARLIER RETIREMENT EARLY RETIREMENT EMPLOYER CONTRIBUTION EMPLOYER CONTRIBUTIONS EQUITIES EQUITY FUND EQUITY FUNDS EQUITY MARKET EQUITY PORTFOLIO EXCHANGE RATE FACE VALUE FINAL EARNINGS FINANCIAL DATA FINANCIAL INSTITUTIONS FINANCIAL INSTRUMENTS FINANCIAL LIBERALIZATION FINANCIAL MARKET FINANCIAL MARKETS FINANCIAL POLICY FINANCIAL PORTFOLIO FINANCIAL RISKS FINANCIAL SYSTEM FINANCIAL SYSTEMS FUND MANAGER FUND MANAGERS FUTURE GROWTH GOVERNMENT BOND GOVERNMENT BONDS GOVERNMENT BUDGET HEALTH INSURANCE HOLDING HOLDINGS INCOME INCOME REPLACEMENT INCOME REPLACEMENT RATES INCOME TAX INCOME-TAX INDIVIDUAL ACCOUNTS INDIVIDUAL PENSION INDIVIDUAL PENSIONS INDIVIDUAL RETIREMENT INDIVIDUAL RETIREMENT ACCOUNTS INDIVIDUAL SAVING INHERITANCE INSTITUTIONAL DEVELOPMENTS INSURANCE INSURANCE COMPANY INSURANCE MARKET INSURANCE POLICIES INSURANCE PREMIUMS INSURANCE PRODUCT INSURANCE PRODUCTS INTEREST RATES INTERNAL RATE OF RETURN INTERNATIONAL BANK INTERNATIONAL STANDARDS INVESTING INVESTMENT CHOICES INVESTMENT DECISIONS INVESTMENT FUNDS INVESTMENT POLICIES INVESTMENT PORTFOLIO INVESTMENT RETURNS LABOR FORCE LABOR MARKET LEVY LIFE EXPECTANCY LIFE INSURANCE LIFE INSURANCE COMPANIES LIFE INSURANCE COMPANY LIFE INSURERS LIFETIME LIQUID ASSETS LOAN LOCAL GOVERNMENT LOCAL GOVERNMENTS LOW INCOME LUMP SUM LUMP SUMS MANDATORY CONTRIBUTIONS MARKET SHARE MARKET SUPERVISION MARKET VALUE MARKETING MARRIED COUPLES MARRIED WOMEN MATURITY MINIMUM PENSION MUTUAL FUNDS NATIONAL DEBT NATIONAL DEBT OFFICE NET ASSETS NEW JOBS OCCUPATIONAL FUNDS OCCUPATIONAL PENSION OCCUPATIONAL PENSION SCHEMES OCCUPATIONAL PENSIONS OCCUPATIONAL PLANS OCCUPATIONAL SCHEME OCCUPATIONAL SCHEMES OLD-AGE PENSION PENSION AGE PENSION BENEFITS PENSION FUND PENSION FUNDS PENSION INCOME PENSION LITERATURE PENSION PLANS PENSION PROVISION PENSION REFORM PENSION REFORMS PENSION RIGHTS PENSION SAVING PENSION SCHEME PENSION STATEMENT PENSION SYSTEM PENSION SYSTEMS PENSIONERS PERSONAL SAVING PORTFOLIO CHOICE PORTFOLIO CHOICES PORTFOLIO REGULATIONS PORTFOLIOS PREMIUM PAYMENTS PRICE INDEXATION PRIVATE FUND PRIVATE FUNDS PRIVATE PENSION PRIVATE SAVING PROBABILITY PUBLIC EXPENDITURES PUBLIC PENSION PUBLIC PENSIONS PUBLIC SAVING PURCHASES PURCHASING POWER RATE OF GROWTH RATE OF INFLATION RATE OF RETURN RATES OF RETURN REPLACEMENT RATE REPLACEMENT RATES RESERVES RETIREMENT RETIREMENT AGE RETIREMENT AGES RETIREMENT BENEFIT RETIREMENT INCOME RETIREMENT PRODUCT RETIREMENT PRODUCTS RETIREMENT SAVING RISK CAPITAL RISK MANAGEMENT SAFETY NET SALARY SALES SAVER SAVERS SECURITIES SECURITIES MARKETS SELF-EMPLOYMENT SEVERANCE PAY SOCIAL INSURANCE SOCIAL SECURITY SOCIAL SERVICES SOLE PROVIDER SOLVENCY SOURCES OF INCOME STOCK MARKET STOCK MARKETS SUMMARY OF CHANGES SUPERVISORY AGENCY SUPERVISORY AUTHORITY TAX CODE TAX DEDUCTION TAX LAW TAX SYSTEM TELECOMMUNICATIONS TOTAL COSTS TRADING TRANSACTION UNEMPLOYMENT VALUE OF ASSETS VARIABLE RATE WAGE WAGES WELFARE STATE WHITE-COLLAR WORKERS WITHDRAWAL WORKING AGE WORKING AGE POPULATION WORLD MARKET WORTH YOUNGER COHORTS Palmer, Edward The Market for Retirement Products in Sweden |
| geographic_facet |
Europe and Central Asia Sweden |
| relation |
Policy Research Working Paper; No. 4748 |
| description |
Far-reaching changes in the regulation
of financial markets and the organization of public pensions
in the 1980s and 1990s transformed the landscape for
retirement products in Sweden. First, banking and insurance
were extensively deregulated in the 1980s, while the
securities markets experienced major expansion. Insurance
received a large boost from the authorization of unit-linked
products in the early 1990s. Second, the public pension
system was reformed. Survivor benefits for widows were
eliminated from the public pillar in the late 1980s, leading
to a large increase in demand for term life insurance. The
old defined benefit public pension system was replaced by a
notional or nonfinancial defined contribution (NDC) scheme,
while a funded defined contribution (FDC) component was also
created in the public pillar. The four occupational pension
funds that cover the majority of Swedish workers were also
converted into FDC schemes. This paper reviews the
implications of these changes for the Swedish annuity
market. It discusses the regulation of payout options in
Sweden, highlighting the compulsory use of life annuities in
the public pillar and the preference for term annuities in
the occupational funds. It examines the performance of
providers of retirement products, including the PPM, and
reviews the increasing focus on risk-based regulation and
supervision. The paper also emphasizes Sweden's success
in moving in the direction of increased funding and
privatization of old age insurance, while maintaining its
basic character as a highly developed welfare state. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Palmer, Edward |
| author_facet |
Palmer, Edward |
| author_sort |
Palmer, Edward |
| title |
The Market for Retirement Products in Sweden |
| title_short |
The Market for Retirement Products in Sweden |
| title_full |
The Market for Retirement Products in Sweden |
| title_fullStr |
The Market for Retirement Products in Sweden |
| title_full_unstemmed |
The Market for Retirement Products in Sweden |
| title_sort |
market for retirement products in sweden |
| publisher |
World Bank, Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2008/10/9912072/market-retirement-products-sweden http://hdl.handle.net/10986/6935 |
| _version_ |
1764401356145164288 |
| spelling |
okr-10986-69352021-04-23T14:02:32Z The Market for Retirement Products in Sweden Palmer, Edward ADDITIONAL CONTRIBUTIONS ADMINISTRATIVE FEE AGE OF RETIREMENT ANNUITY VALUES AVERAGE BENEFIT AVERAGE PENSION AVERAGE WAGE BANK DEPOSITS BANKS BASIS POINTS BENEFICIARIES BENEFIT PLANS BEQUEST BEQUESTS BOND BOND PORTFOLIO BOND RATE BONDS BORROWING BROKER CALCULATION CALCULATIONS CENTRAL BANK CLAIMANTS CONSERVATIVE INVESTMENT CONTRACTUAL SAVING CONTRIBUTION CONTRIBUTION RATE CONTRIBUTION SCHEMES CONTRIBUTIONS CREDITS CURRENCY DEBT DEFINED CONTRIBUTION PENSION DEPOSIT DEPOSITS DERIVATIVES DISABILITY DISABILITY INSURANCE DISPOSABLE INCOME EARLIER RETIREMENT EARLY RETIREMENT EMPLOYER CONTRIBUTION EMPLOYER CONTRIBUTIONS EQUITIES EQUITY FUND EQUITY FUNDS EQUITY MARKET EQUITY PORTFOLIO EXCHANGE RATE FACE VALUE FINAL EARNINGS FINANCIAL DATA FINANCIAL INSTITUTIONS FINANCIAL INSTRUMENTS FINANCIAL LIBERALIZATION FINANCIAL MARKET FINANCIAL MARKETS FINANCIAL POLICY FINANCIAL PORTFOLIO FINANCIAL RISKS FINANCIAL SYSTEM FINANCIAL SYSTEMS FUND MANAGER FUND MANAGERS FUTURE GROWTH GOVERNMENT BOND GOVERNMENT BONDS GOVERNMENT BUDGET HEALTH INSURANCE HOLDING HOLDINGS INCOME INCOME REPLACEMENT INCOME REPLACEMENT RATES INCOME TAX INCOME-TAX INDIVIDUAL ACCOUNTS INDIVIDUAL PENSION INDIVIDUAL PENSIONS INDIVIDUAL RETIREMENT INDIVIDUAL RETIREMENT ACCOUNTS INDIVIDUAL SAVING INHERITANCE INSTITUTIONAL DEVELOPMENTS INSURANCE INSURANCE COMPANY INSURANCE MARKET INSURANCE POLICIES INSURANCE PREMIUMS INSURANCE PRODUCT INSURANCE PRODUCTS INTEREST RATES INTERNAL RATE OF RETURN INTERNATIONAL BANK INTERNATIONAL STANDARDS INVESTING INVESTMENT CHOICES INVESTMENT DECISIONS INVESTMENT FUNDS INVESTMENT POLICIES INVESTMENT PORTFOLIO INVESTMENT RETURNS LABOR FORCE LABOR MARKET LEVY LIFE EXPECTANCY LIFE INSURANCE LIFE INSURANCE COMPANIES LIFE INSURANCE COMPANY LIFE INSURERS LIFETIME LIQUID ASSETS LOAN LOCAL GOVERNMENT LOCAL GOVERNMENTS LOW INCOME LUMP SUM LUMP SUMS MANDATORY CONTRIBUTIONS MARKET SHARE MARKET SUPERVISION MARKET VALUE MARKETING MARRIED COUPLES MARRIED WOMEN MATURITY MINIMUM PENSION MUTUAL FUNDS NATIONAL DEBT NATIONAL DEBT OFFICE NET ASSETS NEW JOBS OCCUPATIONAL FUNDS OCCUPATIONAL PENSION OCCUPATIONAL PENSION SCHEMES OCCUPATIONAL PENSIONS OCCUPATIONAL PLANS OCCUPATIONAL SCHEME OCCUPATIONAL SCHEMES OLD-AGE PENSION PENSION AGE PENSION BENEFITS PENSION FUND PENSION FUNDS PENSION INCOME PENSION LITERATURE PENSION PLANS PENSION PROVISION PENSION REFORM PENSION REFORMS PENSION RIGHTS PENSION SAVING PENSION SCHEME PENSION STATEMENT PENSION SYSTEM PENSION SYSTEMS PENSIONERS PERSONAL SAVING PORTFOLIO CHOICE PORTFOLIO CHOICES PORTFOLIO REGULATIONS PORTFOLIOS PREMIUM PAYMENTS PRICE INDEXATION PRIVATE FUND PRIVATE FUNDS PRIVATE PENSION PRIVATE SAVING PROBABILITY PUBLIC EXPENDITURES PUBLIC PENSION PUBLIC PENSIONS PUBLIC SAVING PURCHASES PURCHASING POWER RATE OF GROWTH RATE OF INFLATION RATE OF RETURN RATES OF RETURN REPLACEMENT RATE REPLACEMENT RATES RESERVES RETIREMENT RETIREMENT AGE RETIREMENT AGES RETIREMENT BENEFIT RETIREMENT INCOME RETIREMENT PRODUCT RETIREMENT PRODUCTS RETIREMENT SAVING RISK CAPITAL RISK MANAGEMENT SAFETY NET SALARY SALES SAVER SAVERS SECURITIES SECURITIES MARKETS SELF-EMPLOYMENT SEVERANCE PAY SOCIAL INSURANCE SOCIAL SECURITY SOCIAL SERVICES SOLE PROVIDER SOLVENCY SOURCES OF INCOME STOCK MARKET STOCK MARKETS SUMMARY OF CHANGES SUPERVISORY AGENCY SUPERVISORY AUTHORITY TAX CODE TAX DEDUCTION TAX LAW TAX SYSTEM TELECOMMUNICATIONS TOTAL COSTS TRADING TRANSACTION UNEMPLOYMENT VALUE OF ASSETS VARIABLE RATE WAGE WAGES WELFARE STATE WHITE-COLLAR WORKERS WITHDRAWAL WORKING AGE WORKING AGE POPULATION WORLD MARKET WORTH YOUNGER COHORTS Far-reaching changes in the regulation of financial markets and the organization of public pensions in the 1980s and 1990s transformed the landscape for retirement products in Sweden. First, banking and insurance were extensively deregulated in the 1980s, while the securities markets experienced major expansion. Insurance received a large boost from the authorization of unit-linked products in the early 1990s. Second, the public pension system was reformed. Survivor benefits for widows were eliminated from the public pillar in the late 1980s, leading to a large increase in demand for term life insurance. The old defined benefit public pension system was replaced by a notional or nonfinancial defined contribution (NDC) scheme, while a funded defined contribution (FDC) component was also created in the public pillar. The four occupational pension funds that cover the majority of Swedish workers were also converted into FDC schemes. This paper reviews the implications of these changes for the Swedish annuity market. It discusses the regulation of payout options in Sweden, highlighting the compulsory use of life annuities in the public pillar and the preference for term annuities in the occupational funds. It examines the performance of providers of retirement products, including the PPM, and reviews the increasing focus on risk-based regulation and supervision. The paper also emphasizes Sweden's success in moving in the direction of increased funding and privatization of old age insurance, while maintaining its basic character as a highly developed welfare state. 2012-06-01T21:20:44Z 2012-06-01T21:20:44Z 2008-10 http://documents.worldbank.org/curated/en/2008/10/9912072/market-retirement-products-sweden http://hdl.handle.net/10986/6935 English Policy Research Working Paper; No. 4748 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Europe and Central Asia Sweden |