Rewirement – for those who want the best of both worlds!
Drawing your pension doesn’t have to mean stopping work altogether. More and more people choose to combine running their own business with drawing their pension, doing what is known as rewirement. How does this affect your pension, tax, and other benefits? Agneta Claesson, pension specialist at the Swedish Pensions Agency, explains the rules and offers tips for those who want to keep working on their own terms.
Working after retirement is not only allowed – it can also have a positive impact on your pension. Many people also find that it improves their everyday life, both socially and mentally.
As many approach retirement age, they feel a certain anxiety about leaving working life entirely. Perhaps it is because they love what they do, have long experience they still want to contribute – or simply because they do mot want to become restless.
That is why more people are choosing to "rewire" meaning they combine running their own business with drawing their pension. According to Agneta Claesson, this is not only possible but often beneficial.
‘A common misconception is that you stop earning towards your pension once you start drawing it. But that is not true. On the contrary, you can both run a business and continue earning pension entitlements,’ she says.”
No cap – no limits
You can start a business and work as much as you like, even after you have begun drawing your state pension. There is no upper age limit for starting your own business, nor any requirement regarding the extent of your activity.
“You can choose to draw 25, 50, 75 or 100 per cent of your state pension, and you decide for yourself how much you want to work alongside it. As long as you declare salary or business profit, you continue earning towards your state pension,” says Agneta Claesson.
What about taxes and contributions?
Income from work after retirement is taxed – whether it is salary from a limited company or profit from a sole proprietorship. You also pay employer’s contributions or self‑employment contributions, just as before, but the difference is that both the contributions and income tax are lower after a certain age.
“This makes extending your working life very beneficial, as you get to keep more of your earned income compared to when you were younger. However, you should be aware that income from work and pension income are added together. If the total exceeds the threshold for state income tax, you may have to pay additional tax,” Agneta Claesson explains.
What happens to other benefits?
If you receive housing supplement or elderly support benefits, special rules apply. You may have some income from work without it affecting your benefits – but if your income becomes higher, you must report it.
“You may have up to 24,000 SEK in earned income per year before tax without it affecting the benefits. If you earn more than that, it must be reported to the Swedish Pensions Agency to avoid incorrect payments,” says Agneta Claesson.
Better finances – and something to get up for
The biggest advantage of "rewirement" is the additional income – it can make a significant difference to your overall finances. Your pension also increases slightly if you continue working.
“Many also find that their daily life improves, both socially and mentally, by having a job to go to.”
Can I continue saving for my pension?
Yes, absolutely. If you continue to have income from salary or business profit, you automatically continue earning towards the state pension. Private pension savings and occupational pensions may sometimes have age limits, but as a self-employed person you largely set your own rules.
“There are no obstacles to continuing pension savings after the pension age. But it is a good idea to look into the terms for withdrawing occupational pension while still working, particularly if you have an occupational pension from a previous employer,” says Agneta.
Advice – but choose carefully
As you approach the retirement age and perhaps start feeling stressed about your pension, it can be tempting to accept quick advice from banks, insurance companies or advisers. But it is important to understand the interests behind the recommendations. On the Swedish Pensions Agency’s website and on verksamt.se you will find neutral and impartial information.
“This is important so you can make informed financial decisions on your own. Always consider who is offering you advice – and what that person or organisation stands to gain from you choosing one option over another,” Agneta Claesson concludes.
Things to keep in mind if you are considering rewirement:
- There is no specific retirement age at which you must start drawing your pension.
- Taxes and employer’s/self‑employment contributions are lower after a certain age – check what applies to your situation.
- You choose how much of your state pension you want to draw – and how much you wish to work.
- Earned income that is declared and exceeds 25,042 SEK per year (2026) means you continue to build up state pension entitlements.
- Work affects housing supplements/elderly support benefits – report income to avoid incorrect payments.
- You can continue saving for your pension – and as a business owner, there are no upper age limits.