In its recent review, the OECD compliments Finland for its low old-age income inequalities. However, the OECD also expresses a concern for the low pension adequacy of the self-employed and suggests measures to improve their pensions. Pension levels in relation to earnings will be reduced in the future in most OECD countries, also in Finland.
Finland’s low birth rates can partly be explained by women having children at an increasingly higher age. This is evident from a joint study of the Finnish Centre for Pensions, the University of Helsinki and the Max Planck Institute. If the demographers’ fertility rate scenario was realised, the long-term upward pressure on contributions would fall …
In 2018, the median monthly earnings of women insured under the earnings-related pension acts were 610 euros less than men’s. The gap was 850 euros in the private sector and 330 euros per month in the public sector. The monthly insured earnings of women were 80 per cent of those of men.
Private and public pension systems will merge into one pension system. Among other things, the merger will strengthen the sustainability and risk management of the earnings-related pension system and streamline the definition of disability and the criteria for disability pensions.
In the long run, the declining birth rates cause a strong upward pressure on pension contribution rates. A major increase in immigration or an equivalent reduction in migration, on the other hand, would ease the pressure by several percentage points. The magnitude of the impact depends on the employment outcome of the various groups of …
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Many of those born in 1955 continued working for another three months. The gradually increasing retirement age has deferred retirement but, so far, it has not caused a rise in the number of people retiring on a disability pension. This is evident from recent statistics of the Finish Centre for Pensions.
Retirees in rural areas have a lower income than those in urban areas, but the life satisfaction of both is at an equal level (7/10). Among other things, homeownership increases life satisfaction among rural retirees. This is evident in a recent study made by the Finnish Centre for Pensions that measured also the perceived economic …
Retirees who live in rural areas have a clearly lower income and struggle slightly more with making ends meet than do retirees who live in urban areas. Despite this, rural retires are not less satisfied with their lives than urban ones.
In 2018 earnings-related pension expenditure amounted to 27.9 billion euros, up 800 million from the year before. The number of new old-age retirees fell back to 49,000, representing a decrease of almost 8,000 or eight per cent from 2017. The main reason was the pension reform that was put into effect in 2017.
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