In 2025, several changes will be implemented that will have a direct impact on many people’s personal finances.
The government has decided to reduce a lot of costs, including the air tax, the petrol tax and reduced tax for pensioners. But in addition, certain deductions are expected to increase – in particular the employment tax deduction and the basic deduction.
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Then you get to keep more of the income
To find out how this might be reflected in the wallets have News24 talked to Dan Adolphson Björckpension economist at minPension. He explains that those who benefit from the increased deductions are the country’s pensioners.
– From January of the year you turn 67, the tax on both salary and pension falls. For those born in 1960 and later, the tax is only reduced the year you turn 68, he says, then adds:
– The tax is reduced because you get an increased basic deduction and if it is a salary, but not a pension, you also get an enhanced employment tax deduction.
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Then you pay SEK 3,200 less in tax
The enhanced employment tax deduction results in you simply being able to keep a larger portion of your income compared to before. And according to Adolphson Björck, it is about a lot of money.
– Someone who was born in 1959 and has an annual salary of SEK 389,000 pays approximately SEK 6,700 in tax per month in 2025, while someone born in 1958 or earlier with the same annual salary pays approximately SEK 3,500 in tax per month. Where you live also plays a role because there are differences in council tax.
Those who were born in 1958 or earlier therefore only pay eight percent if their earned income is SEK 389,000 – a full SEK 3,200 less than those born in 1959 who have earned income of SEK 389,000.
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“The tax is an important issue”
What does the pension economist really think about how it will affect the pensioners who continue to work?
Dan Adolphson Björck explains that when tax differences were introduced, many were unaware of it and that it was not about equal amounts. But today there is a completely different knowledge and the sums have become increasingly large.
– It is likely that there are many people who adjust their work and pension income according to these tax effects, even if not everyone is fortunate. For many job holders, who just combine both work and pension income, tax is an important issue. There is also a small group who want to pause their pension because later withdrawals result in lower taxes. Labor force participation among the elderly is increasing. More people feel that they have more to give and you also notice that working a little extra makes a difference in the wallet, he concludes by telling Nyheter24.
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Source: nyheter24.se
