ITP1
Pensionskalkylator

The Swedish pension system rests on three pillars. The first is the allmän pension (public pension), funded by employer contributions and managed by Pensionsmyndigheten. It consists of inkomstpension (income-based, 16% of pensionable income) and premiepension (2.5% you invest yourself via fund choices). Together these provide a baseline retirement income.

The second pillar is tjänstepension (occupational pension), negotiated through collective agreements like ITP for white-collar workers and SAF-LO for blue-collar. This is what ITP1 belongs to – your employer contributes on top of your salary. For many Swedes, tjänstepension represents a significant portion of retirement income, especially for those earning above 7.5 IBB.

The third pillar is privat sparande (private savings), such as ISK accounts, pension insurance, or other investments you make on your own. While the first two pillars are largely automatic, the third requires active decisions and is where additional retirement planning comes in.

ITP1 is the defined-contribution occupational pension plan for white-collar employees born 1979 or later (older employees typically have ITP2, a defined-benefit plan). Your employer contributes a percentage of your salary into a pension fund of your choice.

The contribution is split at 7.5 × IBB (inkomstbasbeloppet). For 2026, IBB is 83 400 kr, making the threshold 625 500 kr/year or approximately 52 125 kr/month. Below this threshold, the standard rate is 4.5%. Above it, the rate jumps to 30% – reflecting the fact that the public pension system has a ceiling at 7.5 IBB, so occupational pension compensates for the gap.

Some employers offer higher base rates (e.g. 4.5% + extra) or let you salary-sacrifice to boost contributions further. The rates can also be individually negotiated, though the ITP1 minimums are set by the collective agreement between Svenskt Näringsliv and PTK.

With ITP1 you choose where your contributions are invested. The two main options are traditional insurance (försäkring med garanti) and fund insurance (fondbaserad försäkring). Traditional insurance offers a guaranteed minimum return and smoothed results – lower risk but less upside. Fund insurance lets you choose specific funds and bear the investment risk yourself, with potentially higher returns over long horizons.

You make your choice through Collectum, which administers ITP. If you don’t make an active choice, your contributions go to the default option (currently Alecta). The main providers include Alecta, AMF, SEB, Handelsbanken, and Nordea. Key factors are fees (avgifter), historical returns, and flexibility in fund selection. For long time horizons (20+ years), many advisors suggest fund-based insurance with low-cost index funds, while those closer to retirement may prefer the stability of traditional insurance.