Sweden’s Shocking Generational Burden


 
The size of Sweden’s workforce has been shrinking over recent years, like in many EU countries, due to the overall decline in the country’s fertility rate [subscriber only: The EU Faces Serious Depopulation, Starting Now]. As retirees live increasingly longer, and there are fewer working-age taxpayers to support them, a generational tax burden is emerging.

Number of Workers to each Dependent (65+) in Sweden
The working-age population represents those aged 15 to 64. Period: 1950-2050.
Sweden’s Shocking Generational Burden




Sweden’s working-age population will continue to shrink unless unpopular policies, such as allowing mass immigration, are employed [subscriber only: Without Migration the Workforce of Many Countries will Dramatically Shrink]. This demographic trend will become increasingly unsustainable, because the 65+ cohort cost Governments more than any other age group [subscriber only: ‘The Alarming Cost of Aging Demographics’]. In 2023, 45.8% of Sweden’s expenditure on social protection went towards the category of ‘old age and survivors’ – mainly constituted by expensive pensions. This is leading to an unsustainable generational tax burden on the workforce.

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