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Reader question: Is it possible to transfer a foreign pension to Sweden?

A lot of people who move to Sweden do so mid-career. A UK reader asked us if it was possible to transfer an overseas occupation pension to Sweden. You can but it's not always worth it.

Published: 9 February 2024 12:18 CET
Updated: 24 February 2024 11:37 CET

Reader question: Is it possible to transfer a foreign pension to Sweden?

A retired couple enjoying a leisurely breakfast in Sweden. Photo: Susanne Walström/imagebank.sweden.se

“Hello, I have just hit 50 and have started to think about my pension,” the reader writes. “I worked pretty much constantly after I graduated, including a few years for the UK National Health Service. Is it possible to transfer that into my Swedish fund?”

Monica Zettervall, a pensions expert at the Swedish Pension Agency, said that while the transfer of an overseas state pension happens almost automatically, it was less common for people to transfer an overseas occupational pension into their Swedish tjänstepension.

State pension

The transfer of the basic state pension from other countries where you have lived and worked happens almost automatically. When you retire, the agency asks you about any entitlements to a state pension you might have from overseas.

“When you apply for your Swedish pension, it asks you on the form if you have lived overseas, and if so, when you were working. You also have to give your social security number,” Zettervall said. “Then we contact their authorities.”

The Swedish Pension Agency will then pay out any state pension you might have accrued overseas together with your Swedish state pension.

Overseas occupational pension

Transferring an overseas foreign pension to Sweden is more difficult.

The bank Nordea and the pension company Futur Pension are the only two providers in Sweden who accept transferred foreign pensions, and, as far as the UK is concerned at least, they are also the only two companies accepted as “Qualified Recognised Overseas Pensions Schemes” (QROPS).

Nordea will handle both the transfer of an overseas pension and act as a pensions manager, whereas Futur Pension will hold the funds, but works with clients through two financial advisory firms, Max Matthiessen and Söderberg and Partners.

“The process depends on different factors – for example country, insurance company and former employer,” said Anne Höglund, Head of Insurance Specialists at Nordea. “As long as we are informed that the pension is transferable the process itself is straightforward. Different countries and companies has different requirements for transferring and Sweden has its own laws and rules that will apply for the pension when it arrives in Sweden.”

On its website, Nordea says that it is able to move over pensions from EU agencies, the UK, Ireland, Luxembourg, The Netherlands, Jersey, Malta, Belgium and Norway – so long as you have lived there less than 3 years.

Max Matthiessen will handle pensions from all of the above, but also transfers pensions from France, Guernsey, and Isle of Man.

Ahmed Ben Moussa leads the foreign pensions team at Max Matthiessen. Photo: Max Matthiessen

What is the point of transferring an overseas pension?

Ahmed Ben Moussa, who runs the foreign pensions division at Max Matthiessen, told The Local that there were several advantages in consolidating your pension in one country.

“Max Matthiessen’s perception is that the advantages of transferring a workplace pension from other countries is to make it easier when you retire by collecting your pension funds in the same country as where you live,” he said.

“And not just easier. “You might have other options in the country, for example, you might be able to access a wider range of investments and get the potential for more flexibility over how you access your funds when you retire, and you might be offered more flexibility over who you can pass your pension on to when you die.”

Some clients were also worried about the risk of double taxation, he added.

“Our perception is that some clients are worried about double taxation and have therefore transferred to the county where they live. However, we always inform our clients that we are not tax advisors and that we cannot give them any tax advice. We always refer our clients to tax advisors if they have any tax questions, we can only assist them with transferring the funds to Sweden.”

One advantage for people living in Sweden is that all of your pension is visible on the Min Pension website, giving you much greater visibility over how much you stand to receive.

Anne Höglund, Head of Insurance Specialists, is the Nordea spokesperson on foreign pensions. Photo: Nordea

How does a transfer of an overseas occupational pension take place?

Ben Moussa said that the first step is always to collect information from the overseas pension provider on its management fees, fund fees, exist fees and any possible charges.

“Before we can make any QROPS (Qualifying Recognised Overseas Pension Scheme) transfer, we inform our clients that we need information about for example what pension product the client has, which fees they are paying, and how they are invested and transfer out forms. Some clients want to collect everything by themselves, and some clients want us to help them with everything from A to Z through an information power of attorney.

He said that only Max Matthiessen handled the information gathering itself, with Nordea requiring the customer to collect this information.

The transfer advisor then has a mandatory financial advisory meeting with the client, where they compare what they have in the UK, what they pay for their pension, and how this would compare to what they would be offered in Sweden. The client then decides whether to go ahead, after which the process takes between six months and a year.

Can all foreign pensions be transferred to Sweden?

Not necessarily. One issue is whether you have a “defined contribution”, based around what you have paid in, or a “defined benefit” or “final salary” pension, in which the provider commits to a certain payout.

“Transfer of a final salary pension is possible, even if there are rules to consider,” Höglund said. “Depending on scheme and volume, the customer might need a contact with a British advisor.”

However, Ben Moussa said that both Nordea and Futur Pension, while willing to transfer both types of pension, will convert “defined benefits” pensions to “defined contribution” pensions once the funds are in Sweden.

One client from the UK, who had a defined benefits pension from the National Health Service, he said, had been unable to transfer his pension to Sweden because the NHS Pension Scheme would only accept the transfer to another defined benefits scheme.

What fees are charged?

Max Matthiessen and Söderberg and Partners both take commissions from Futur Pension for any funds transferred to them by their clients, both from overseas and from other pension providers in Sweden. Depending on the amount of funds being transferred, they might also often charge a fee to the client.

Höglund said that Nordea Life & Pension “doesn’t charge the client for the process of transferring pension rights to Sweden”, but you may find fund management charges increase.

Zettervall said that she was unconvinced of the benefits of transferring an overseas occupational pension to Sweden.

“Normally, people don’t move their overseas occupational pensions to Sweden,” she said, adding that anyone doing so should keep a close look on the charges levied by the company carrying out the transfer.

“You need to keep track of the costs. You don’t want to pay them too much of your pension to do this for you.”

Member comments

Anonymous - 9 February 2024 at 16:44 CET

I had several occupational pensions in the UK when I moved to live and work in Sweden many years ago. I found that moving my pensions, although possible in most cases, was not a good idea. Therefore I left them based in the UK and the pension providers (including the UK state pension) agreed to make payments in SEK to my Swedish bank account.
Anonymous - 9 February 2024 at 16:51 CET

In 2022 and 2023 I spoke with Nordea regarding my pension transfer. Nordea would only help with pension transfers from the UK if the total value is above 200k sek.
Anonymous - 9 February 2024 at 19:41 CET

I’m retired and receive an occupational pension from France where I worked for many years. They send in euro each month and my Swedish bank converts into SEK. Sweden has bilateral tax agreements with many countries, but not all, so it’s important to see where you stand depending on the country of origin of your pension. You will probably also have to prove once a year that you are still alive (life certificate / levnadsintyg) for continued payment of the pension. Otherwise, for me it works fine.
Anonymous - 11 February 2024 at 11:54 CET

You say “The Swedish Pension Agency will then pay out any state pension you might have accrued overseas together with your Swedish state pension”.

This is not strictly true. Sweden does not pay out UK pensions if the calculation of combining the UK and Swedish contributions is less than the sum of the individual pensions. The pension agreement UK -EC states the rules are the same pre and post Brexit.
Anonymous - 11 February 2024 at 17:54 CET

II dont see much advantage in transferring the assets, it works fine collecting pensions where they come from and getting them paid to any account of your choice, in Sweden or where your pension comes from. For us, we collect the French and German pensions in Euros to our account in France and the US SSA pension must be to a Swedish account, US SSA does not accept transferring USD to an account in a country which is not your residence.

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How to grow your own fruits and vegetables in Sweden

Know your growing zone

Sweden is split into eight different growing zones, known as växtzoner in Swedish, with one being the mildest zone in the far south of the country and eight being the harshest, in the far north.

The easiest way to figure out which zone you live in is to search your address on a digital growing zone chart like this one from the Swedish Garden Association.

There are two “bonus” zones too, which you’re unlikely to see on plant labels: zone zero, which refers to extra mild conditions in zone one, like a sheltered south-facing garden or the climate inside an unheated greenhouse, and the fjällzon or zone nine, which is found in mountain regions.

Lots of fruit trees can handle snow, for example, but not all of them will survive the winters in harsher, colder zones.

“Apple trees or fruit trees will survive snow,” British gardener and cider maker John Taylor, known for presenting Swedish gardening show Trädgårdstider (Garden Times), told The Local.

“You can grow all kinds of apples, pears, plums, cherries, we can grow edible quince in southern Sweden, so there’s a bunch of fruit trees which will survive, but it depends what rootstock they’re on – that’s called grundstam in Swedish,” he explained.

“There’s one rootstock called B9 that survives down to minus 40, because it’s from Russia, then there’s another called M106, and that probably doesn’t want to live in the depths of Norrland.”

Buy plants local to you

An easy way to make sure the plant you’re planning on buying is going to survive in your zone is by sourcing it from a local plant nursery or garden centre, as they won’t sell plants that can’t handle the local climate.

“There’s a nursery in the north of Sweden and Finland called Blomkvists, they sell lots of fruit varieties which will survive up there,” Taylor said. “You can grow pretty much anything you want up there, just as we can [in Skåne, southern Sweden], but it will be different varieties that taste different and will survive the frost.”

You won’t be able to grow Mediterranean fruits like lemons or oranges in Sweden unless you bring them inside during the winter, although you should be able to grow peaches or nectarines in most of the country.

“The further up in the country you go, the further north you are or the further away from the coast, the harsher the climate becomes, so you might need to have them on a south-facing wall or in a greenhouse,” Taylor said.

Think outside the box

Although the growing season in Sweden may be shorter than it is further south, there are still a number of crops from warmer climates that do surprisingly well.

“People don’t really grow cucumbers outside here, I don’t think they realise that you can actually grow them outside,” Taylor said. “Tomatoes, too. You don’t need a greenhouse, you just stick them in the ground, they’re basically a weed – you’ll get so many you won’t know what to do with them.”

Sweetcorn, for example, performs well in a Swedish climate, Taylor said, although Swedes more often grow it as a feed crop for pigs.

You can also test things by trying to build a microclimate so you can grow things that are one or even two growing zones away from yours. Usually this is done by providing shelter from the wind and the weather using fences, hedges or by planting near buildings, as well as providing protection during the winter.

And if you’re pushed for space, look into companion planting, where you can grow multiple plants which complement each other in the same space.

One example of this is the “three sisters”: corn, climbing beans (or peas), and squash. The corn provides a support for the beans or peas, which anchor the corn in high winds while fixing nitrogen in the soil, while the squash’s large leaves provide shade for the soil, preventing it from drying out.

Don’t be put off just because you don’t have any outside space

Thinking outside the box applies to balconies too.

“If you’re in a built-up area, you will get reflected light from other buildings, so even if you’re on an east-facing balcony, you should be able to grow a lot of stuff. North is a bit more tricky, but east and west are probably better than south as you’re not getting hammered by the sun all day,” Taylor said.

You should be able to grow things like tomatoes, cucumbers and flowers, but it’s important to get hold of good soil and replenish it each year, so your plants have enough nutrients.

“Anybody with a balcony can grow pretty much the same that you can in a garden, you just have to get the soil up there and you always have to fertilise, the soil becomes nutrient deficient after one season.”

“But if you’re prepared to get the soil up on your balcony you can grow anything, even fruit trees. They will be smaller and stunted, and won’t give as much fruit – I’ve done it myself – so don’t see it as an obstacle, see it as a possibility.”

Kale and tomatoes growing on a balcony. Photo: Johan Nilsson/TT

Take inspiration from Swedish growers

Thinking outside the box doesn’t mean that you should completely ignore what all your Swedish neighbours are doing. If you’re not sure what to plant in your garden or what fruit and veg you should try to grow, take a look at what other people who live near you are growing.

You might also come across some crops you’ve never tried before which work well in a Swedish climate, like Alpine strawberries (smultron), honeyberries (blåbärstry), wild garlic (ramslök) or sea buckthorn (havtorn).

This doesn’t just apply to varieties, but also where you plant them in your garden. Some crops need full sun, some work best in shade, and others, like asparagus, can grow tall and cast a shadow over your garden.

“You want a south-facing location for all fruit, and berries – check out what your neighbours are doing,” Taylor said.

If you don’t want tall plants to cast a shadow over other crops, see if you can plant them at the northernmost edge of your garden, while making sure that sun and soil conditions are still optimal. Blueberries, for example, need acidic soil to thrive, meaning you will probably need to amend your soil if planting in the ground, or even plant them in containers.

Think about what you want to do with your harvest

This may seem obvious, but it’s important to plant what you like to eat, too. If you hate the aniseedy, licorice-y taste of fennel, why bother growing it?

You should also choose the variety of crop based on what you’re going to use it for. Do you want to make pickles with your cucumbers, or are you going to eat them on salads? Do you want cherry tomatoes for snacking on, or big beef tomatoes for making sauces?

“Think ‘what am I going to do with my harvest’,” Taylor said. “Am I going to juice it? Am I going to preserve it? Am I going to make cider with it, for example?”

Apples, for example, can range from sweet eating apples to tart cooking apples, so make sure you do your research before you commit to buying an apple tree. Most varieties exist in English-speaking countries, so you should be able to search the name of the variety online and find some information in a language you understand, if you don’t speak Swedish.

“Patience is a virtue,” he added. “A lot of fruit trees are going to take two or three years, or even more, to give a harvest. So you have to have patience.”

Learn to deal with the Swedish weather

Many areas of Sweden along the coast or in the south of the country can get windy, which you’ll have to learn to deal with.

“How to deal with the wind? You can’t,” Taylor said. “We cannot affect this, we are powerless.”

“What you have to do is plant them in areas where there’s less wind, usually behind large buildings.”

Some plants simply won’t survive the wind, so either you plant them close to buildings, protect them, or accept that you’re restricted in what you can grow.

Make sure to provide supports for crops which will grow tall, like sunflowers, peas, beans and sweetcorn, and tie these down well or bury them deep in the ground, so summer storms can’t blow them away.

Listen to the full interview with John Taylor in The Local’s Sweden in Focus Extra podcast for Membership+ subscribers. Out on Wednesday, May 8th.

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