Inquiry proposes linking the “LAS age” to the target retirement age

A government inquiry has recently presented a proposal to align the so-called LAS age with the target age that governs the national pension system. The aim is to better reflect increased life expectancy and create a more sustainable pension system.

Earlier this summer, the government inquiry on how the LAS age can be adapted to the target retirement age submitted its report to the government (SOU 2025:70, “Longer Life, Longer Working Life”).

Currently, under the Employment Protection Act (LAS), employees have the right to remain in employment until the end of the month in which they turn 69. This age limit is referred to as the LAS age.

The target retirement age is a separate age limit determined annually by the government, six years in advance, to reflect changes in life expectancy. As of 1 January 2026, the target age will govern several pension-related age limits, such as when it is possible to begin drawing the national pension.

Since life expectancy in Sweden is increasing for both women and men, working life also needs to be extended for the pension system to remain sustainable in the future. Against this background, the inquiry was tasked with proposing how the LAS age can be adapted to the target age, based on the principle that there should be a two-year gap between the LAS age and the target age.

The inquiry proposes that the LAS age should correspond to the target age plus two years, and that the change should be implemented by introducing a definition of “LAS age” in the Employment Protection Act. The proposed definition is designed so that the LAS age is automatically adjusted when the target age changes. The new rules are proposed to enter into force on 1 June 2026.

Of particular interest are the transitional provisions proposed by the inquiry. Specifically, it is proposed that collective bargaining agreement terms entered before 1 June 2026 that require retirement before the new LAS age will become invalid as of that date. However, it is proposed that a lower retirement age under individual agreements entered into before 1 September 2001 will continue to apply.

The inquiry’s report can be read here.

Setterwalls’ comments

The inquiry’s proposal will now be circulated for referral and then further considered by the government. It will therefore take some time before we know exactly what the new rules will look like. Given the aim of extending working life in line with increased life expectancy, it is nevertheless likely that some form of adjusted calculation of the LAS age will become a reality. Setterwalls is monitoring the legislative process and will return with suggestions on how employers can prepare once a final legislative proposal is available.