"I can buy more petrol for my car. Fuel is expensive", says one person we talked to. But he thinks the housing problem is more important.
Radio Sweden spoke to retired people in central Stockholm to find out how they were planning to use the extra money, up to SEK 410, and whether the savings would be significant for them.
The government is also raising the housing supplement for lower income pensioners. According to a calculation by the newspaper Dagens Nyheter, a pensioner who makes a little less than SEK 17,000 per month will benefit most from these measures, combining to give them about SEK 850 more per month in their wallet.
Pensioners who have a monthly income of SEK 35,000 or more will not benefit from the tax cuts.