The “red envelope” that we as an employee work so well recognize. For many, this is a depressing sight to say the least, every year it dips into the diaper box.
Private pension savings have previously been rewarded.
Very many Swedes have had their own private pension savings for a number of years in order to prepare for a slightly better life as a pensioner. Almost 4 out of 10 adult Swedes have had private savings, which they have until now been allowed to deduct in the declaration.
The right of deduction for pension savings disappears
At year-end 2014/2015, the rules for deductible pension savings will change. In the declaration you have previously been able to deduct pension savings of up to USD 12,000 per year.
At the turn of the year, when the rules change, the right to deduct is reduced from USD 12,000 per year to USD 1800, to disappear completely since 2016.
What does the change mean in practice?
The change can mean differences in the amount of several thousand USD a year regarding how much money you get in the wallet and above all it makes a difference on the amount you will then receive in pension.
If you do not change your savings, you will, like other savings in for example funds, be taxed twice.
Economic consequences in everyday life already.
By reducing your tax deductions, it can become noticeable directly in connection with your first tax return. Money you may have previously received back on the tax will not be lost and thus you will have worse finances in your everyday life than you had before.
Minimize the damage of the missing tax deductions for pension savings
A number of other measures can of course be taken to create a greater financial space in the everyday economy.
Financial advisers believe that one of the alternatives you may have is to review your financial situation and re-apply loans to reduce housing costs, for example.
Of course, it is always good to have as low borrowing costs as possible, but what few people know is that a small change in loans or increased repayments can make a big difference in your wallet when you count on the whole at the end of the year.