Finns are more increasingly interested in working in retirement. As many as every third person aged between 54 and 62 years considers working after they have retired. In particular, the self-employed, the highly educated and those who are worried about their retirement income are interested in working while drawing a pension.
In her study of the retirement intentions of Finnish citizens, Economist Sanna Tenhunen (Finnish Centre for Pensions) finds the growth of interest in working in retirement among the elderly to be considerable.
“Even if only a small part of the desire to work will be realised, working in retirement will become much more common in the near future. Retirees are particularly interested in occasional work,” Tenhunen estimates.
Only a few years ago, only every tenth retiree on an old-age pension worked in retirement.
Those in their 60s most interested
Those who are 60 to 62 years old, those who have a university degree and the self-employed are those who are considering working in retirement the most. Those who are concerned about their income in retirement also stand out: more than every third of them express an interest in working for financial reasons.
“Those who estimate their income in retirement to be weak or fair are more interested in working in retirement than those who estimate to do well in retirement,” Tenhunen says.
Public sector workers, those who are worried about their health and those whose spouses do not work are clearly less interested in working while drawing a full pension.
Unsure about partial old-age pension
More than 50 per cent of the respondents estimate that they will retire exactly at their retirement age. However, Finnish citizens also show interest in flexible retirement. About every sixth estimate to retire early while more than every fourth estimate to retire late.
Seven per cent state an interest in the partial old-age pension. Nearly half believe that they will not retire on this new pension.
“The share of unsure respondents is almost as large, as nearly 50 per cent were unable to state their view,” Tenhunen explains.
About one third of all respondents estimate that were they to take out a partial old-age pension, they would continue working full or part time. Those with a secondary-level education or a lower university degree were more often considering working while drawing a partial old-age pension. The self-employed form a group of their own, in which working while drawing a partial old-age pension is clearly more often considered than among the other respondents.
A total of 2,179 people responded to the Finnish Centre for Pensions’ questionnaire survey. The survey was done about six month before the 2017 pension reform came into force.
Sanna Tenhunen, Economist, phone +358 29 411 2492, sanna.tenhunen(at)etk.fi