An old, creaky woman with a cane – that’s how the young Marianne Hvitlock imagined a retiree.
This year, she is part of the 2024 retiree class and can only laugh at how wrong the 30-year-old version of herself was. Now, at 66, she is as far from being an old lady as one can be. In fact, Marianne absolutely radiates in her large floral dress, tied at the waist.
"As a young woman, I rarely thought of myself as old. If I did, I couldn’t imagine what it would be like," she says during SPP’s big party, Pensionspremiären, which took place in August in central Stockholm.
Part-time retirement a popular solution
Marianne has every reason to be happy. After a long career, first in the travel industry and then in the real estate business, she recently embarked on a new, pleasant life as a "jobbonär" (working retiree), combining a stimulating professional life with newfound free time.
Horseback riding, choir singing, concerts, and quite a bit of exercise, topped off with a touch of beauty care at the salon, fill Marianne's daily life.
"I spend my free time taking care of myself, to feel good and stay healthy. I also love dancing. My partner and I often enjoy Stockholm's nightlife."
Struggling to make the pension last
Three years ago, after a constructive dialogue with her employer, Marianne set a plan to gradually scale back her work. Not only because she didn’t want to fully quit what she loves, but also to make her finances work. Marianne couldn’t afford to retire fully at 65.
"Saving for retirement wasn’t on my radar during my life, and no one talked about saving with me when I was young. Today’s young adults are much more aware. Both my children think about retirement even though they’re only in their 30s. I wish I had been just as smart," says Marianne.
Many "jobbonärer" between 65 and 66 years old
Combining work and pension is a solution that puts more money in the pocket and is becoming increasingly common among Swedish 65-year-olds. In 2022, there were around 261,000 people who combined work and pension, according to the Swedish Pensions Agency. Most are between 65 and 66 years old, but there are also around 2,300 "jobbonärer" who are 85 or older.
There are significant benefits to working while drawing a pension: a higher earned income tax credit from the year you turn 67, and employer contributions decrease from 31.4% to 10.31%, which some employers may choose to pass on as higher wages. However, it’s important to ensure that income and pension don’t exceed the threshold for state tax, 58,100 SEK for people aged 67 and older, as that could turn the whole thing into a losing proposition.
"I wouldn’t have enough to live on if I became a full-time retiree today. I never paid much attention to my pension savings. I kept pushing it off, which isn’t a strategy I recommend," she adds.
Retired life better than many think
In the future, Marianne envisions herself spending a few weeks each year in Italy or Spain, somewhere by the Mediterranean, with her children and grandchildren around her, enjoying full-time retirement. But not yet. Right now, she’s thoroughly enjoying this new phase of life, with a spacious apartment in Tyresö and a small pied-à-terre in Stockholm. Being able to work and have plenty of free time to focus on herself is the perfect setup, she believes.
"I’ve never had it this good. If only I had had this chance years ago!"
But this feeling of happiness wasn’t always certain. It’s been a journey.
That first time you see yourself as an adult beyond your career can feel challenging, Marianne acknowledges.
"I actually panicked a bit. And one day, when I was offered a 10% senior discount in a store, well, I felt really old," she recalls.
"There are many stereotypical views and prejudices about what it’s like to 'be older.' Many consider us over 65 as passé. But of course, it all depends on your circumstances and health. Being healthy and strong isn’t something to take for granted. I’m more than grateful for that."
Marianne's 3 tips for those about to retire
- Stay in the workforce a few days a week. Don’t stop working completely; it can be a tough transition.
- Exercise for your well-being, both physically and mentally.
- Do things that make you feel good! Avoid anything that drains your energy.
