Good intentions do not excuse bad results

Grossly simplified, politics is ultimately about pitting groups against each other. Politicians control the distribution of tax money and decide not only which groups get to share in tax money, but also how much they get. This creates contradictions between the different groups. An example of this is the pension payments.

In an interview, Anna Pettersson Westerberg, director general and head of the Swedish pension authority, says quote "The Swedish pension system is fundamentally based on reasonable principles - that every krona earned gives a higher pension. The changes of recent years have meant that the principle of living income and the drive to work have eroded." unquote.

In Sweden, we have a state basic allowance that compensates those who have worked part-time or not at all, and the number who receive it is quite high. More than 60% of all pensioners receive some form of basic support. For example, of the Swedish citizens aged 66 and over, 14% of them receive a guaranteed pension.

The guarantee pension is a basic protection in the general pension which is for those who have had means, little or no income from work during their life. It is mainly based on how big your income pension is and how long you have lived in Sweden, but also your marital status.

The Swedish pension is part of the salary cost and in reality a deferred salary. Then paying out money to people who never deposited money into the system will be unsustainable in the long term. As long as the number of pensioners who withdraw money through guaranteed pensions is small and does not affect the other pensioners by more than a few cents, people accept it. But when cents turn into hundreds of dollars, the situation becomes completely different.

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