Annamalai Ramanathan and Meena Palaniappan say social security and benefits outweigh high expenses
For NRI couple Annamalai Ramanathan, an instrumentation engineer, and his wife Meena Palaniappan, a finance professional, life in Sweden is financially demanding but rewarding. Despite taking home only half of their gross income due to high taxes and expenses, they say the social security benefits and quality of life more than compensate, reported livemint.com.
Nearly 55% of their net income is allocated to home loan payments, childcare, and household expenses, while discretionary spending—including travel, shopping, and dining—accounts for another 30%.
The couple’s biggest financial commitment is their 700-square-foot apartment in Gothenburg, purchased through a tenant-ownership model where the residents’ association co-owns the property. This structure, though unusual, reduces personal loan liability.
From free education and subsidized healthcare to a strong pension system, the couple enjoys financial security uncommon in many countries
Ramanathan acknowledges the high cost of living but believes the benefits outweigh the burden. Free education, government-subsidized healthcare, and an efficient pension system ease long-term financial planning. Public education, including university, is entirely free, and healthcare remains subsidized, with annual expenses capped for adults. To ensure quicker access to specialists, the couple also maintains private health insurance.
Employers contribute significantly to pensions, with mandatory and additional voluntary contributions creating a robust retirement fund.
Ramanathan’s employer contributes to both social security and the ITP 1 Pension scheme, ensuring financial stability in later years. Sweden’s parental leave policies further support families, granting each parent 240 days of leave, with the government covering up to 80% of their salary during this period.
While Sweden offers ample opportunities for IT professionals, Ramanathan notes that non-IT professionals may struggle unless they master the local language.
His wife secured a suitable job only after five years of searching. Due to these challenges, he advises mid-career professionals with families to carefully consider a move, as setting up a life in Sweden is expensive and initial savings are minimal.
The couple saves about 15% of their income, primarily for retirement in India and their son’s future.
Ramanathan recently built a house in Trichy, Tamil Nadu, where he plans to retire. While he invests in stocks and mutual funds, his primary focus remains on ensuring a stable future rather than aggressive savings.
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