The Review Of The Reform Of Swedish Pension System And Its Effects

Pension system generally refers to the system of pension funds pooling, management, operation and provision, which is designed or formed in the certain society under the certain historical conditions. During the course of the development of modernization in the world old-age problem can be regarded as a special phenomenon. Sweden has always been in a leading position in the world at the pension system development and reform. Since 1913 the Swedish pension system has gone through nearly a century's development after its formal establishment. Based on the original type of old-age pension provision in Sweden, the Swedish pension system has developed into a multi-typed and multi-tiered pension system. And Sweden is famous for its Swedish Model. For China which is deepening the reform of social security system, Swedish experience has great practical significance.In 1913 the Swedish government approved the pension bill and declared the formal pension system in Sweden had been set up. After that Sweden has formed a multi-pillar pension system including the public pension plan, the enterprise annuity plan and the personal retirement plan to meet the different need for the people. The Swedish pension system's ideological foundation mainly comes from the thoughts of the Swedish School and the Swedish Social Democratic Party. Because of the stage of economic development, corporatist politics and the Swedish cooperation and compromise spirit, the Swedish pension system always puts the emphasis on the universality and the equality. To the 1970s the Swedish pension system began to reform for the aging challenges and the welfare state crisis. The reform content was how to reduce the pension expenditure, to introduce the competition mechanism and to reform the mode of raising and paying. In it the Sweden created the "non-financial defined contribution" and this became the biggest bright spot. On the whole the Swedish pension system has realized the fairness and the government, the society and the individuals do their own duties in the multi-pillar system. All of these ensure the system to develop healthy and effectively.