A Swedish Dream: High Cost, Big Gains

Imagine a life where you don't need to worry about saving for your child's future or your own retirement, and healthcare is subsidized, eliminating hefty insurance premiums or the need for a large contingency fund.

- Shipra Singh

For instrumentation engineer Annamalai Ramanathan and wife Meena Palaniappan, a finance professional, this is their life in Sweden where social security benefits, savings, and goals differ from the average Indian working couple. While Sweden ranks high for the quality of life, it comes with a high cost of living and taxes. But Ramanathan says he wouldn't have it any other way.

He shared his experience as part of a Mint series on Indian expats.

High taxes, benefits aplenty

Ramanathan moved to Sweden in 2017 after seven years in Norway, both known for high taxes and living costs. About 50% of his income goes towards social security and taxes, leaving him with half of what he earns. Nearly 55% of the family's net income covers home loan payments, childcare, and household costs, while 30% goes towards discretionary spending such as dining out, shopping, and holidays. Buying a home isn't cheap either. The couple pays EMI of 12,000 kr (₹197,000) plus service charges for their 700-sqft Gothenburg apartment. They own it via tenant-ownership agreement with a residents' association.

High cost of living

Does the high cost of living pinch? "No. Yes, taxes are high, but we reap benefits like free education for our son, subsidized healthcare, excellent pension system," Ramanathan said. "High living costs are just part of life in Nordic countries."

Public education and healthcare up to age 18 are free in Sweden. "The government also gives 1,250 kr a month as child allowance, which we invest for our son's future."