Low-skilled older workers and early exit from the labour market: It’s not just who you are and where you work, but also whom you work with

In Finland, like in most other advanced industrialised countries, low-skilled older workers are at a higher risk of early exit from the labour market than their higher-educated peers. To extend these workers’ working lives, relying on their own responsibility or implementing more government policies alone will not be enough: the help of employers is needed. Lisää uutisia

Working old-age pensioners are satisfied with their life

Post-retirement work has become more common in Finland and in other countries in recent years. Older people who continue working after retirement have been found to be happier and healthier than those who are not working. This blog clarifies the association between post-retirement work and life satisfaction in Finland. The results are based on a postal survey conducted by the Finnish Centre for Pension in the autumn of 2017. Lisää uutisia

Finland’s policy-makers should focus on lifting older men’s employment rates

While negotiations to form a new Finnish government are ongoing, various commentators are pleading for the new government to be ambitious in its goals to raise employment levels. Only the question is: whose employment levels and by what measure? Some groups in Finnish society are doing well when compared the same groups in other countries, while others are doing worse.

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Use of public services: does it change our idea of pensioners’ well-being?

The opportunity to use publicly provided services supports pensioners’ livelihood and well-being significantly. The Pension Adequacy Report 2018 of the European Commission highlights that an evaluation of an adequate pension depends on what the pension is supposed to cover, including consumption of goods and services. From this perspective, it is possible to draw a parallel between social transfers in cash and benefits received from the use of public services. On the other hand, out-of-pocket fees can be a substantial financial burden, in particular for low-income pensioners.

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How to make pension systems more robust – Automatic adjustment mechanisms as a response to longevity

Without adaptation, increasing life expectancy entails cost-increases for statutory pension systems. In Finland, earnings-related pensions have undergone a major reform by adapting both retirement ages and the pension formula to increased life-expectancy. The European Commission’s Annual Employment and Social Developments Review lifts up the Finnish reform as an example of how to incentivize longer working lives. Mikko Kautto explains the essence and motivation behind automatic adjustment mechanisms.

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Stakeholder dialogue improves pensions

Did you ever look for your glasses just to realize that you were already wearing them? Or try to find a pencil just to discover that you could just as well have used a pen that was lying right in front of you? Such blunders do not only happen in our everyday lives, they can also happen in pension reforms and in research on pensions. The reason is that a stakeholder dialogue does not always take place.

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Flexible retirement eroding the cliff-edge between work and retirement?

In its latest pension reform, Finland relaxed the rules for retirement, giving people more freedom to combine work and retirement. By introducing a new partial pension, Finland is following the old-age pension scheme design of Sweden and Norway. So far, the experiences from all three countries indicate that people want to combine work and retirement income. It remains to be seen whether gradual retirement will become as popular in Finland as it is in Norway, or whether it will stay at a more moderate level, as in Sweden.

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Divided Europe in terms of pensioners’ economic welfare

Pensioners in Europe have considerably more money to spend today than in the early 2000s. The poverty rate has gone down by around 20%, and the gap in income between pensioners and working-age people has become narrower. These are all good news about pensioners’ economic welfare in Europe. But if we look at this from a more differentiated angle, we see that there is more to the story.

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Footing the Pension Bill – Do Beveridgean and Bismarckian Countries Differ?

It is said that one of the core values of Europe is diversity. This certainly holds true when looking at pension systems. There is such a diversity of actors, financing mechanisms as well as public-private mixes that it is easy to conclude that Europe embraces diversity as much in its pension systems as in its cultures and languages. Lisää uutisia

Could Working Lives Be Extended By Working Less?

At first glance, the thought of extending working lives by doing less work seems counter-intuitive: how can something be extended by reducing it? However, when analyzing working lives we need to scrap intuition. The lengths of working lives are not predetermined; people constantly make choices that will have an impact on the total length of their working lives. That’s why something can be reduced (transition from full-time to part-time work) and extended (through later retirement) at the same time.

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