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Sweden - A well developed welfare state in transition by Shaun Armstrong, Regional Manager Sweden Sweden’s demographic changes means it’s ageing population is increasingly turning to the market rather than the state to provide health services, insurances, pensions and education. A time of change for the Swedish industry then? “Yes. The idea that the state will take care of you from cradle to grave is no longer a reality. This has increased demand for personal financial services and insurances.” However the changing environment is politically sensitive in Sweden and market actors face political and regulatory uncertainty - especially in the fields of aged care, health and education. “Financial service providers and advisers will need to pay close attention to consumers and regulators to meet rising demand.” However the bedding down of EU directives has made the Swedish regulators partly predictable in their direction.” The Swedish market has met increasing demand for financial services with a few key actors providing popular low cost online saving, investment and insurance platforms. What role for the adviser then? “There is an opportunity for advisers who take a holistic approach to financial planning and insurance tailored to the individual. This sort of holistic financial planning is quite well established in markets such as Australia and the United Kingdom, but still fairly new in Sweden. Advisers need to be able to differentiate themselves in the market with quality service and bespoke solutions - to help clients identify and fill the gaps left by a shrinking state.” How are financial services currently delivered? “Like a lot of service delivery in Sweden there is a high degree of centralization, technology and efficiency at the cost of individual service. The major market actors are high street banks with a few larger brokers serving High Net Worth clients.” What is the most important “gap” that needs filling? Retirement savings. Understanding the Swedish system and getting good advice is essential for good retirement planning. One possible solution, the Swedish “Capital Insurance” wrapper, is similar to the UK offshore bond and is a versatile portfolio management and savings vehicle that will become increasingly important for retirement, tax and estate planning to help people get from the cradle to the grave.