At the end of 2016, roughly 70,000 persons aged between 63 and 67 years worked. Half of them were also retired. They count for 18 per cent of the population of this age group. Since 2007, the share of working retirees has grown by nearly four percentage points. In the 2010s, the growth has decelerated to slightly above one percentage point.
The number of 63-67-year-olds who worked nearly doubled in the years 2007-2013 when the baby boomers reached their retirement age. In the last few years, the growth has been moderate.
At year-end 2007, less than 40,000 pensioners drawing an old-age pension were working, while the same figure at year-end 2016 was nearly 70,000. Half of them continued working without drawing a pension. The other half consisted of 34,000 people who worked and drew a pension at the same time.
Relative to the size of the age group, the growth in working retirees has been modest. The share of working 63-67-year-olds has grown by four percentage points as of 2007, from 14 to nearly 18 per cent. Only slightly more than one percentage point of that growth has taken place in the 2010s.
”It is natural that the number of working retirees grows slowly. For change to happen, workplaces and society need to change their way of thinking. That usually takes time. The weak economic situation in recent years has also slowed down the growth,” says Development Manager Jari Kannisto of the Finnish Centre for Pensions.
Work done in retirement usually part time
Work done after retirement on an old-age pension is often part-time work and more-or-less irregular. Last year, the average monthly earnings were 1,000 euros, which was slightly more than half of this group’s average earnings-related pension (€1,900/month). In other words, the earnings-related pension of those who work in retirement was more than 100 euros higher than the average earnings-related pension of those who retired in 2016 (€1,768/month).
This would indicate that people do not work in retirement primarily because their pension is small but rather because they are interested in and motivated to work.
“No doubt, to some people, the additional income is an important way to improve their standard of living in retirement” Kannisto points out.
Jari Kannisto, Development Manager, phone +29 411 2232, +358 50 368 7559, jari.kannisto(at)etk.fi