With older workers now staying healthier, the average planned retirement age has risen faster than the minimum pension age, a new survey reveals.
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Walking on the frozen sea in Espoo (file photo). Image: Henrietta Hassinen / Yle
Increasing numbers of workers in Finland are planning to retire later, according to a study published on Tuesday by the Finnish Centre for Pensions.
In 2023, workers over age 50 said they planned to retire at an average age of 65 years and five months. That was 10 months later than in the previous poll, conducted in 2018.
During the intervening time period, Finland has raised the minimum retirement age by about seven months.
According to Satu Nivalainen, an economist at the Finnish Centre for Pensions, it is good news for the financial sustainability of the pension system if the intended retirement age outpaces the minimum retirement age.
Previous research indicates that retirement intentions predict actual retirement age quite reliably.
Nivalainen noted that two factors explain why Finns want to continue working after their minimum retirement age.
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Satu Nivalainen, an economist at the Finnish Centre for Pensions Image: Milka Alanen
“People who are approaching retirement age are increasingly healthier. They’re also more educated than before,” she told Yle.
More hope for gradual reduction in working hours
More workers would postpone their retirement if their employers were more supportive, the poll suggests. Only a third of those approaching retirement age said that they see their workplace as supportive of older workers.
Nivalainen points out that around the turn of the millennium, only about 10 percent of the workforce was over 55. Today, the corresponding figure is almost a quarter.
She also notes a growing trend of older workers who would like to reduce their working hours before reaching pension age. Nivalainen urges such people to discuss this with their employers well in advance – and for employers to listen more closely to workers’ wishes.
The pension centre’s report is based on data from a Statistics Finland survey that is conducted every five years, in which the agency asks respondents aged 50 or over about their retirement plans.