Majority of Swedish Homeowners Plan to Use Property for Retirement Income Amid Expert Warnings

A recent survey by Länsförsäkringar reveals that 57% of Swedish homeowners consider their property as a form of retirement savings. This sentiment is especially strong among individuals aged 50 to 64, where 63% view their homes as a financial safety net for their post-work years. Among those intending to leverage their homes for retirement, 88% plan to sell their properties to increase their retirement finances, while 12% aim to stay put and borrow against their property.

However, financial experts caution against relying solely on real estate for retirement income. Stefan Westerberg, a private economist at Länsförsäkringar, warns that this approach is risky because it concentrates too much financial dependency in one asset, or "many eggs in the same basket." He also highlights that selling property entails capital gains tax (reavinstskatt), which can significantly diminish the anticipated funds at retirement.

As a safer strategy, experts recommend homeowners diversify their retirement planning by blending mortgage repayments with consistent savings in stock or mutual funds. This combination can build a more flexible and less market-sensitive financial buffer, reducing the risks associated with depending purely on housing wealth for retirement security.