Social Security, pensions and the US-Sweden totalization agreement

Americans who work in Sweden, or who retire there after a US career, deal with two pension systems at once. The United States and Sweden have a Social Security agreement, often called a totalization agreement, which prevents paying into both systems for the same work and lets credits from both countries be combined when needed. This guide explains how the agreement works, according to the US Social Security Administration (SSA), and how Sweden's national public pension is built, according to the Swedish Pensions Agency (Pensionsmyndigheten).

Which system you pay into

### Employees

Under the US-Sweden agreement, if you work as an employee in the United States, you are normally covered by US Social Security, and you and your employer pay Social Security and Medicare taxes only to the US. If you work as an employee in Sweden, you are normally covered by the Swedish system, and your employer pays social security taxes only to Sweden.

### Self-employed

For self-employed people who would otherwise be covered by both systems:

• self-employed workers who reside in the United States are assigned US coverage;
• self-employed workers who reside in Sweden are assigned Swedish coverage;
• someone normally self-employed in one country who transfers the business to the other country for five years or fewer stays covered by the country they came from.

This matters for American freelancers living in Sweden: residence in Sweden generally points to Swedish coverage.

### Certificates of coverage

A certificate of coverage proves you are exempt from the other country's system. To establish exemption from US Social Security while working for a Swedish employer, the employer requests a certificate (form SW/US 101) from the Swedish regional social insurance office for its region. Self-employed people living in Sweden write to the regional social insurance office where they live.

The request includes your full name, date and place of birth, citizenship, family members accompanying you, the employer's or business's name and address in both countries, and the dates of transfer and expected return.

What the agreement covers

For Sweden, the agreement covers sickness compensation, activity compensation, guaranteed pension, income-based old-age pensions, survivors pensions and surviving children's allowance. It does not cover health insurance, unemployment insurance, work accident or occupational illness insurance, or family allowance.

On the US side, it covers Social Security retirement, disability and survivors benefits.

Combining credits

If you have credits in both countries, you may be eligible for benefits from one or both. If you meet the basic requirements of one country on your own, you receive its regular benefit. If you do not, the agreement may help you qualify by counting credits from the other country.

• US benefits: if you lack enough US credits for a regular benefit, you may qualify for a partial US benefit based on both US and Swedish credits. You must have earned a minimum amount of US credits for this.
• Swedish benefits: Sweden's own rules apply, counting US periods where the agreement allows.

Under US Social Security you can earn up to four credits a year. Full retirement age rises to 67 for people born in 1960 or later, with reduced benefits available from 62.

Sweden's national public pension

### What it is

Pensionsmyndigheten states that everyone who has worked or lived in Sweden receives a national public pension. It is based on all income you pay tax on, including unemployment benefit, sickness or activity compensation and parental benefit.

### The parts

The pension consists of an income pension and a premium pension. An income pension complement may be paid in addition. People born between 1938 and 1953 may also have a supplementary pension. People with little or no income may be entitled to a guarantee pension, calculated on the number of years lived in Sweden.

### How much is set aside

Each year, 18.5% of your pensionable income, up to 7.5 times the income base amount, is allocated to the national public pension. Of that, 16% goes to the income pension and 2.5% to the premium pension, which is invested in funds.

### Occupational pension

Most people also receive an occupational pension from their employer, on top of the national pension. Personal savings are a third layer.

### Survivors

If a close family member dies, you may be entitled to a survivor's pension, made up of child pension, adjustment pension and widow's pension.

When you can draw a Swedish pension

### The recommended retirement age

Sweden uses a recommended retirement age (riktålder), adjusted for average life expectancy so that pensions do not fall as people live longer. It is not mandatory, but it sets the earliest ages for several benefits:

• You can draw the income pension and premium pension from three years before your recommended retirement age.
• The guarantee pension, income pension complement and housing supplement start no earlier than the recommended retirement age.

The age is set six years before it takes effect. Pensionsmyndigheten states that the recommended retirement age that applies from 2026 until 2031 is 67.

### Low pensions

Pensioners with a low pension can apply for a housing supplement, which is tax-free, and financial support for the elderly.

Tracking your Swedish pension

Each year, people earning toward the national pension receive the orange envelope (orange kuvert), an annual statement showing how much has been earned so far, which funds the premium pension is invested in and how they performed. Pensionsmyndigheten also offers a pension forecast covering the national pension, occupational pension and some private savings.

The orange envelope comes by post unless you have a digital mailbox, which requires Swedish e-ID. If you later move back to the US and changed your address with Skatteverket, Pensionsmyndigheten receives the new address from there. Otherwise, you can report it by email or signed letter with your personal identity number or coordination number.

Applying for benefits

### From Sweden

If you live in Sweden and want US or Swedish benefits, you can contact any Swedish social security office to file for either.

### From the US

You can call SSA at 1-800-772-1213 (TTY 1-800-325-0778), 8 a.m. to 7 p.m. on business days, or complete form SSA-2490-BK and mail it to your local SSA office.

### One application, two countries

You can apply with one country and ask for the application to be treated as a claim in the other. Each country processes it under its own laws, counting the other country's credits where appropriate.

### Payments

Each country pays its own benefit. US payments are made monthly by the Treasury and cover the previous month. Swedish payments are generally made between the 12th and 17th of each month and cover that month.

Common questions

Do I pay US Social Security tax while employed in Sweden? Under the agreement, employees working in Sweden are normally covered by the Swedish system, and the employer pays social security taxes only to Sweden.

Can Swedish work count toward US Social Security? If you lack enough US credits, the agreement may let you qualify for a partial US benefit using both US and Swedish credits, provided you have a minimum number of US credits.

When can I draw a Swedish pension? The income and premium pensions can be drawn from three years before your recommended retirement age, which is 67 from 2026 until 2031.

Does the agreement cover Swedish health insurance? No. For Sweden it does not cover health insurance, unemployment insurance, work accident insurance or family allowance.